Why insurance becomes more important as you get older?

Most people would probably happily do without any form of insurance… right up until the point they need to make a claim. Whilst we all hope that our homes will never be damaged or cars are stolen, it can happen. So having a safety net in place gives you peace of mind and can avert potential disasters, as long as you have sufficient cover.

As many people get older, they can become increasingly reliant on having a working car or a secure home. Suffering a burglary or accident is an unpleasant enough for anyone, but not having effective cover turns a bad situation into a devastating experience with long-lasting repercussions.

Insurance can make good out of a bad situation

Insurance is there to offer policyholders protection from major financial damage as a result of misfortune or malicious intent. Whilst compensation can’t replace the irreplaceable – such as precious photo albums, heirlooms and antiques – it can at least ensure something positive comes out of a negative experience.

Again, as we get older, we generally collect more items – sometimes items of significant value. Whilst we hope that they will remain safe within our homes, nobody can guarantee that misfortune will never arise. It doesn’t necessarily need to be a burglary or a fire that spells disaster. Natural flooding or water damage from a burst pipe can be just as destructive.

The same goes for your life

Then of course there is life insurance. Again, this is another form of cover that most people would rather not have to think about but that doesn’t mean it should be forgotten. Most of us will have some form of cover, usually required to secure a mortgage. However, as we get older, the premiums will often increase as will the likelihood of making a claim.

Whilst the owner of a life insurance policy will rarely benefit, apart from when an endowment matures or refunds are provided, it is a way of ensuring that their loved ones are looked after in the event of their death. And as mentioned, health issues are far more likely to arise in later life, which means having a bulletproof policy can provide real peace of mind.

Feeling safe as houses at home

Home insurance can’t provide security or safety in itself, but it is there to make sure that you aren’t adversely affected should you the worst happen. As you get older and you perhaps become a little more concerned about how secure your home is, it may well prove beneficial to make a few security upgrades of your own. For instance, even if you have a strong lock on your front and back doors, making sure that windows or patio doors are equally secure can help keep any potential intruders at bay.

Going a step further, you might also wish to install a security alarm. Whilst this won’t be cheap to do, it can help to provide vital protection. Just the sight of an alarm can be enough to deter potential burglars. And if and when the alarm is tripped, neighbours and the security company will be alerted, meaning that action can be taken quickly. Again, significantly decreasing the likelihood of theft.

Added security can also benefit your pocket, not just your peace of mind

A welcome benefit of increasing security around the home is a decrease in the cost of your contents insurance. With the risk of theft reduced significantly, insurers are able to provide significant discounts.

However, try as you might, here is always a chance that natural disasters and similar misfortune can strike to damage your property. You simply cannot  protect your home against every eventuality, but – through the right insurance – you can protect your peace of mind.

So, as this article demonstrates, there are a number of reasons why insurance can become even more important as you get older. There is no good time to have to make a claim, but in later life you need to know that you can rely on swift compensation on the event of an emergency. If, for example, your car is written off or your home suffers flood damage, it can have a huge impact on your life. So it’s good to know you have the safety net insurance provides, in place.

*Note: Insure4Retirement has issued this guide for information purposes only regarding what could be available on a home insurance product. No advice is being offered as to the suitability of any policy to a person’s own personal circumstances.