On this site over the years I've stressed the importance of planning ahead for life's contingencies through insurance.
Whether we like to believe it or not, a majority of us will face an unplanned negative event in any given 10 year period. If we don't plan ahead and get insurance to cover the costs of those major life events (like death, disabling events, health problems, etc) you may end up paying for it in the long run. It could have an extremely negative affect on your level of wealth.
Not purchasing insurance is something that too many people end up regretting. Another thing that a lot of people end up wishing they had paid more attention to is their health.
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Financial & Physical Health Are Important, But We Could Do Better
The two groups that are closest to retirement age, Gen Xers and Baby Boomers, are not particularly optimistic about how prepared they are for their financial futures.
John Hancock released a survey this week that found that while most people rank their physical and financial health as important, most know they could be doing better in both areas.
respondents rank “making sure you’re financially secure” as one of the most important aspects in life (47 percent) – along with “being healthy” (54 percent), “being happy with where you are in life” (55 percent), and “having close relationships with family and friends” (55 percent) – only slightly more than half (53 percent) say they feel prepared for their financial futures, with only about one in 10 (11 percent) saying they feel very prepared. Nearly all (94 percent) say they could be living healthier lives.
“More than ever, Americans are at the crossroads of health and wealth and are looking for ways to improve both areas of their life,” said Michael Doughty, president, John Hancock Insurance. “
People know now more than ever just how important it is for you to not only have your finances in order, a piece of which is having good life insurance. More than ever people are also realizing just how important a piece of the puzzle having good health is.
Reasons Why Good Health Can Help You Save Money
When you're in good health you're going to be saving money in a variety of ways.
- Reduced health care costs: you won't be going to the hospital as much, and you'll likely live a longer life.
- Reduced prescription costs: Adults in the age range of 18-64 who exercise regularly will decrease their risk of more than 25 chronic health conditions, and their accompanying medications, according to the Public Health Agency of Canada.
- Lower insurance costs: Depending on your level of fitness you will pay more or less for your insurance premiums. Being in good health pays dividends!
Being in good health can save you thousands of dollars on health costs you might otherwise have had.
Too Many Aren't Buying Life Insurance
While most of us realize the importance of life insurance, far too many still aren't buying life insurance. In fact, ownership of individual life insurance is at a 50 year low.
The Trends in Life Insurance Ownership study, conducted every six years by LIMRA, found that only 44 percent of U.S. households have individual life insurance. The number of U.S. households that have no life insurance whatsoever is growing. Today, 30 percent of households (35 million) have no life insurance coverage, compared to 22 percent of households in 2004.
Not only is life insurance ownership at a 50 year low, but too many of us are dealing with health issues related to lifestyle choices that end up costing us a lot of money.
Being Rewarded By Your Life Insurance For Your Healthy Choices
Speaking to the need for Americans to be healthier, as well as to encourage more families to buy life insurance, John Hancock came up with a life insurance program with a twist.
This life insurance, John Hancock Vitality, has a healthy living rewards program. Their survey (mentioned above) found that:
87 percent of respondents agreed life insurance policyholders should be rewarded for making healthy choices, and a large majority (84 percent) said they would be more likely to purchase that kind of product than a traditional life insurance policy.
John Hancock’s life insurance with Vitality, introduced in April 2015, gives consumers the opportunity to significantly save on their premiums and earn valuable rewards and discounts—simply by living a healthy life. The program, which integrates with personalized health technology, including wearables like Fitbit®, offers participants rewards and discounts from major brands such as Amazon, Hyatt and REI, just for walking, having regular check-ups, and engaging in other everyday healthy activities such as getting a flu shot or health screening.
I received compensation in exchange for writing this review. Although this post is sponsored, all opinions are my own.