Why Getting Life Insurance While You’re Young is a Good Idea
Life insurance is a savvy financial option for all ages
You might think of life insurance as something you only need as you get older, but the reality is the opposite. The earlier you get life insurance, the better. Let’s take a look at the benefits of getting a policy while you’re young.
The main reason you’d want to buy life insurance when you’re young is that it is more affordable than when you’re older. Most companies offer lower life insurance premiums to young people who are healthy and have no preexisting conditions. You’re also more likely to get approved for a policy when you’re young. With a good life insurance policy in place, if one day you decide to have a family, the death benefit will help with your financial future. Life insurance can also provide financial support for severe medical issues, like cancer. Here’s a breakdown of the types of life insurance:
Term Life Insurance
- Lasts for a specific time period, usually from 10 to 30 years
- Death benefit is paid after the policyholder’s death
- No cash value component
- When the term ends the policyholder is no longer covered
- Lower premiums than whole-life policies
Whole Life Insurance
- Includes a death benefit
- Includes cash value component
- Any loans taken from the cash value component will decrease the death benefit value
- The loans have to be paid back, usually with interest
- Permanent policyholders might receive yearly dividends
No matter what you choose, you should get multiple quotes for a policy and figure out a financial plan for paying the premiums.
Content by Savvy Money
