Life Insurance: Buy Now While You are Young

Admittedly, thinking about end-of-life issues like life insurance isn’t anyone’s cup of tea. This is especially true when you are young, healthy and these issues seem decades from being a problem. However, now, not years in the future, is the time to start thinking about life insurance. 

Now, while you are young is the optimal time to invest in a life insurance policy. This is true whether you currently have a family who depends on you or just plan to have one in the future. Getting a life insurance policy now, locks in the best possible rates. Read on to learn more about why now, while your young, is the time to buy a life insurance policy:

It's More Cost-Efficient

The cost of life insurance will only get more expensive the longer you wait to purchase it, so putting it off doesn't make financial sense. In fact, you can expect insurance premiums to increase between 8 and 10% each year you postpone buying coverage. The reason premiums increase is you are seen as a greater risk the older you get and the more health issues come into play. You can lock in your rate young and reduce the amount of money you spend over the course of your lifetime. There is no way to beat the life insurance rates you will get in your 20s and 30s once you reach 40 and beyond. 

You Need To Provide

You might think as a young person there is no need to purchase a life insurance policy. However, while you are young and healthy now, illness and accidents can and do occur. The cost of a funeral alone can be enough to break the budget of a young family as funerals average between $7,000 and $12,000. Therefore, if the only reason you are considering a policy is to pay for your own final expenses, that alone could be enough reason to consider it, to prevent your family from having to shoulder that burden should something happen to you. 

Types of Life Insurance You Need To Consider

Once you have made the smart decision to purchase life insurance while you are young, you have two main options to choose from with regard to the type of life insurance you can purchase. They are listed below:

• Term Life Insurance: The vast majority of young people choose this type of life insurance because it is the least expensive of the two options. You purchase a term life policy, and it will provide coverage for a specific amount of time, providing you continue to make your monthly payments. Once that set time period is up, you can renew the policy or let it expire. Keep in mind, since you will be older at the time, your policy could be more expensive when it comes time to renew, which means your premium will be higher. You might even be denied due to health reasons once your term policy expires. However, at least for the duration of the term policy, you will have coverage in place to provide for your family. 
• Whole Life Insurance: This is also referred to as permanent life insurance. It is exactly what it sounds like, lifelong, permanent. That is as long as you keep the premium paid. This type of policy is often significantly more expensive than a term life policy. Because of its greater cost, younger people are often unable to afford a whole life insurance policy. 

Bottom Line: Life Insurance ss a Wise Investment

We get it. No one wants to think about death, but accidents and illnesses happen, and putting off purchasing life insurance will only cost you more in the long run. Contact our team of experts today to determine what life insurance policy is right for you. Don’t go another day unprotected from life’s uncertainties.