Sure.
Because, at the rate you pay premiums, it would take somewhere between 8 and 20 years to save up the full coverage amount.
So either
a) You had to have started saving as early as possible, or
b) You have to save a much larger percentage of your income to catch up
Also, you might have rational purpose for not saving that much, so you can deploy your income in a more productive way.
Similarly, why would people get a car loan? Just save up and pay cash!!!!! Why waste money on interest payments (particularly when interest rates on loans were much higher.)
Some people could do that, some couldn't.
Now you have an option you didn't have before.
Also, you might have rational purpose for not saving that much, so you can deploy your income in a more productive way.
Similarly, why would people get a car loan? Just save up and pay cash!!!!! Why waste money on interest payments (particularly when interest rates on loans were much higher.) Some people could do that, some couldn't. Now you have an option you didn't have before.