Asked on 29 Oct 2020
Your first statement is very true. It is a rarity, but there is only one hypothetical scenario, where it makes financial sense to get your insurance later.
The scenario would entail you, avoiding all risks that pertain to yourself, and having a drawn income, that would be high enough to negate for any negative scenario for your personal standard of living. This would be mean building up your net worth so that in the event of critical illnesses, you will have a source of income during your illness, and a alternative source of income should you be unable to get employment. That number could be anywhere from 500k to 1m and beyond, depending on your income drawn and standard of living.
For health related risks there is no way to control this aspect, so getting hospitalisation insurance is a must.
Unless you fall into this very small group, of high income earners at a young age and live a very risk adverse life, then it will not make financial sense, for you or your loved ones to be burdened by expenses due to having insurance coverage that commensurates with your standard of living.
Hope i was able to shed some insight on your question!
04 Nov 2020
Generally, insurance is a tool that is used to fill in the financial gaps based on a needs-based approach. Accordingly, if you only need insurance for a certain period of time, e.g. from age 40 to age 50, then it may not make a lot of sense to be covered since young.
However, this is based on the assumption that you will always remain healthy throughout the entire period that you are not insured for. That being said, will this always be true in reality?
Therefore buying an insurance policy goes beyond just dollar and cents alone.
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04 Nov 2020