Should You Insure While You’re Young?

Should You Insure While You’re Young?

Regardless of your age, if you are married or have children, the benefits of life insurance are obvious: you want to continue to provide for your loved ones should the unexpected occur. If you’re young, healthy, and single with no dependents, getting life insurance may be the furthest thing from your mind. No one likes considering their own mortality, especially in their twenties, when this reality appears to be decades away. A lot of young people believe that life insurance policies are far more expensive than they actually are, and you may be surprised at some of the benefits in investing now while you’re young.

Now or Later: Reasons Not to Wait

Of course, we all hope to live a long and healthy life and when we’re in our prime, the possibility of something happening to us seems distant and unlikely. But choosing a life insurance policy now can benefit you substantially, no matter how many years of life lie ahead of you.

Lock in lower premiums. As you get older and your health declines, insurance rates go up. If you’re in your mid-twenties or thirties, the same insurance plan you purchase today could triple in price by the time you turn fifty. As long as you pay your premiums on time and abide by the terms of your policy, you may be able to secure the same lower rates over your lifetime.

Have freedom to change your policy later. There are many different options in life insurance, and purchasing one policy now doesn’t preclude you from switching to another later. Term policies only cover you for a certain time period, and whole life insurance policies are intended to continue for the course of your life, and many options exist in between. Depending on your income and other factors, the policy that makes the most sense for you now could change in a few years.

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Ensure coverage regardless of your employer. While many employers still offer life insurance in addition to health insurance, the practice is becoming less common than in the past. Even if your employer does provide you with life insurance coverage, it may be insufficient. You may want to supplement it with an additional plan. Furthermore, many young people are becoming more comfortable with purchasing life insurance through a separate entity, even when offered by an employer to ensure continued coverage when employment changes.

Don’t leave your family to pay off your debts. If you don’t have a spouse or any dependents, it can be difficult to imagine why you would need life insurance. Many plans help pay for expensive funeral costs, and also assist with paying any debts upon death. Some loans, including federal student loans, are dischargeable on death, but others may simply transfer to a parent or cosigner. Worse, some loans require that the whole amount due be paid immediately at death.

A Policy That Is Right for You.

Many of us feel invincible when we’re young and healthy, but the reality is that it’s never too early to start planning ahead. Depending on your circumstances, income, and responsibilities, any of a wide variety of life insurance options may be the right fit for you. Even if you decide that you don’t need life insurance at this point in your life, a conversation with an experienced insurance agent can help you to better understand the options available to you and empower you to make an informed decision. We are happy to help. Give us a call today so we can discuss your options. We focus on finding the most affordable rates for our local customers and are happy to review an existing policy, as there may be new options on the market that better suit you. Call today and speak with us — we are here to help.