Thursday, August 11, 2011

Getting insurance early?

Do you know that insurance companies ask for more premiums if the person who wants to be insured is classified as a high risk life insurance case? For example, smokers command higher premiums than non smokers; the elderly also get their insurance premiums higher than those in their twenties, and people in high risk occupations like soldiers, policemen, firemen and others who have a higher chance of meeting an untimely death would have a more difficult time finding affordable insurance.

That's the only reason I could think of if you're getting whole life insurance for minors -- if the occupation that they desire would be classified as a high risk. If, for example, my kid becomes a soldier (but, dear Lord, I really hope not), I'd get a whole life insurance for him as early as high school so that he wouldn't be saddled with high insurance premiums in case something happens to him. We all know that life insurance benefits only the people left behind. And if someone is in the high risk group, there's a bigger chance of leaving behind people who depend on you.

Otherwise, for the usual groups, I wouldn't really recommend getting life insurance unless other people depend on you, like your spouse and kids.

I don't believe in getting insurance for small children, since they really don't have a big chance of dying (knock on wood) and, generally, instead of providing for family, they are the ones provided for.  Their untimely death would usually not mean financial dire straits, so getting insurance is usually not very practical at this stage.

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A part time ophthalmologist, part time micro business owner, part time graduate student and FULL TIME MOM struggling to find balance in the confusing world of multitasking :)