Not having insurance is like skydiving without a parachute — you do not want to be stuck in that situation.
The benefits of insurance cannot be understated. From car damage to critical illness, there is an insurance out there to cover you under nearly every circumstance. Unless you rank among the ultra wealthy with enough money to cover every turn of event, you want — no, need — insurance.
However, there are still some people without insurance of any kind. Here are some of the most common excuses:
- "My pay is not enough as it is!"
You've heard this one before. Insurance requires you to set aside a certain amount of money regularly. However, with the prices of everything rising in recent years — or, at least, rising faster than our salaries — those without insurance argue that they are already paying more than they can afford.
What they don't realise: The impact on your finances will be even greater in times of need without insurance in place. After all, if money is tight now, wouldn't it be even tighter if something happens? More importantly, if the policy is right, you won’t be paying out too much money on a monthly basis — and it will cover you for any emergencies.
- "I work out and I have a balanced diet. I don't need health insurance.
"Millennials are often accused of 'living in the now' and not worrying enough about the future. After all, if nothing is amiss on the health front, why bother?
What they don't realise: Humans are not indestructible. If diseases or accidents do not catch up with you, age will. Even if you have somehow amassed a sizable sum in the bank account, failing health in your old age will blow a hole in your savings. Just because it is happening later in life doesn't mean you don't have to do something about it right now.
- "It's already too late — what's the point?"
Some people are totally on board with the benefits of insurance, but they are already halfway through their forties, and feel that saving now wouldn't make much of a difference later on in life.
What they don't realise: This only holds true to some extent for life insurance. When it comes to health insurance, the premiums will rise with age regardless of when you took out the policy. So it does not matter when you apply for insurance. Remember, it is never too late to start.
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