Buy it while you’re young – 5 good reasons

Getting life insurance as a young adult may not be at the top of your priority list. After all, you’re probably thinking that you’re healthy, not married, and don’t yet have children who depend on you among other things. Why pay unnecessary life insurance premiums at this point in your life?

Investing in life insurance in your 20’s or 30’s can be a wise financial move. Here are five reasons you should consider buying life insurance young.

  1. Lock-in great rates
    Buying life insurance early will keep your premiums the same for the duration of your policy, unless you change the amount of coverage. Buying Life insurance at a younger age locks in lower premiums and reduces the total amount you’ll spend on life insurance over the course of your lifetime. You simply can’t beat the life insurance rates you receive in your 20s and 30s.

Your health is another determining factor in how much you pay for life insurance. Getting insured before any health conditions develop, such as high cholesterol or high blood pressure, lets you lock-in very affordable premiums for decades to come.

  1. Protect your loved ones
    Do you have student loans, credit card debt or financing for a new car, or maybe even considering buying your first place? If you were to die, life insurance can protect your parents or loan co-signers from the burden of paying off your debts.

What if you’re in a relationship and have a mortgage, life insurance can protect the surviving partner from having to cover the remaining amount themselves, or losing the home entirely. Many young couples on a tight budget prefer a term life policy as an affordable alternative to get coverage for a set period of time – such as the length of your mortgage.

  1. Build your credit
    Opt for a permanent policy you’ll be building credit you can bank on. As the cash value of your policy grows, you’ll be able to borrow against it. The younger you buy a policy, the more time your policy will have to grow in value.
  2. Protecting your future
    You may not have dependents now, but that could change in a few years. Investing now means you’ll have protection in place when your children, spouse or aging parents rely on your income. If you wait, it may be more difficult and expensive to get coverage.
  3. Take advantage of discounts

If you have other insurance policies with your particular insurer, such as Auto or Home insurance, adding Life insurance can increase the discount you get on those policies, saving you money on your other insurance costs.

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