When you’re a student and your finances are tight, getting insurance may not be one of our priorities. The truth is, pursuing higher education abroad allows individuals to not only gain insight into concepts of the educational world that may have never otherwise never been conceived but to also experience the everyday unknown. For many, it’s the chance to live away from home, develop new relationships and discover what path in life they want to take. While this is exciting and a chance of a lifetime, it’s important that students not only make plans for their next big adventure but also plan for the unexpected. That is why we thought it wise to emphasize the benefits of getting insurance as a student. Here are some of the benefits of getting insurance as a student:
Benefit #1: You are in your healthiest life stage
You will most likely never be as healthy as you are in your twenties. Insurance companies factor in your health when determining insurance premiums, especially for medical and life insurance policies. The healthier you are, the cheaper your insurance premiums will be.
The dangers of waiting until your thirties or forties to take out life insurance is that should your health change for the worse, you will find it harder to find an insurance provider willing to provide you with the same level of cover than had you started out when you were young and healthy at the same premium. Some insurance companies may even refuse to provide you with cover at all if your health is really poor.
Benefits #2: Peace of mind
While it is not pleasant to imagine the worst, it is important to plan for unfortunate and unforeseen events such as a disability or permanent incapacity. Imagine you have just started working and you are involved in a terrible accident that leaves you disabled. How are you going to afford to live and pay rehabilitation bills if you cannot earn the salary you studied for?
This is especially daunting if you have started to accumulate debt and owe money for items such as student loans or motor vehicles. This is why life insurance can bring you comfort in knowing that a significant portion of your income will be paid out to you in the event that you are no longer able to perform your profession.
Benefits #3: Your Dependents are taken care of
Another important thing to remember about life insurance cover is the money that will be paid to beneficiaries upon your death. Many people in their twenties already have children or parents who are dependent on them to bring in a salary. In addition, many people in this age bracket have significant debt as a result of student loans and other expenses, which will need to be repaid in the event of their deaths. Having a life insurance policy in place will ensure your family is not left financially destitute should you pass away.
Benefit #4: Getting an Insurance Would Save you from sudden financial loss
There is no doubt that insurance is often considered a grudge purchase – people do not really want to spend money on something they might not ever need. However, when the need does arise – such as a motor vehicle accident or theft – short-term insurance will enable you to repair or replace your possessions to their original state. This is especially important for younger people, who have often not yet built up savings that they can draw on for “rainy day” purposes.
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Benefit #5: Ensuring a solid financial future
It is important to lay the foundation now for a solid financial standing in the future. If you are confused about where to start, there are plenty of helpful financial advisors out there who would be more than willing to assist you with your specific insurance requirements.