In a perfect world, adult life would follow a very predictable pattern from from the start of career employment through retirement. That would make it much easier to make financial decisions. But as we discuss with clients at our Yuba City life insurance agency, that isn’t always the case. In fact, the ideal life trajectory that we often have in our minds—career, marriage, buying a home, having children, etc.—rarely works out precisely that way.

Rather than making decisions based on this presumed life path, we encourage people to make a frank assessment of the myths versus the realities. Here are just some of them:

  • Myth: Life will flow smoothly from one stage to the next, so I don’t have to start saving for retirement until I’m older.
  • Reality: People often think that since they will likely have larger paychecks as they get further along in their career, that will be an easier time to save. However, the opposite tends to be true. As a younger person you have fewer financial obligations so it’s easier to start setting some money aside and developing a strong savings habit. And when you hit bumps in the road, you’re much better equipped to respond.
  • Myth: I don’t have to worry about medical challenges impacting my finances when I’m young.
  • Reality: Financially draining chronic medical conditions (those lasting three months or more) can occur at any age. Things like asthma, cancer, diabetes, and viral diseases can cause time off from work and lost wages that quickly put a person in a financial bind.
  • Myth: I’m young and healthy so I don’t need to worry about life insurance at this point.
  • Reality: Unfortunately, even people in seemingly excellent health can have an underlying medical condition or can be the victim of an accident at any time. Going without life insurance until later in life is a risky strategy that can leave your loved ones struggling to pay bills and a mortgage after you are gone.
  • Myth: Insurance is expensive and I probably can’t afford it.
  • Reality: It’s a common misperception among people who haven’t looked into it that insurance is expensive. Policies that provide great coverage and welcome peace of mind can cost far less than you’ve imagined.

The Power of Being Prepared

We certainly don’t mean to emphasize the negative aspects of life, but to ignore the financial realities can put you in a challenging financial position if the unexpected occurs. It’s much better to take action now to ensure your financial stability down the road. If you’ve got questions about how insurance should factor into your financial plans, call our Yuba City insurance agency at 530-751-1212.

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