Looking into life insurance is something that many people put off until after they have established their careers and families. For many, considering an insurance plan before marriage or having children seems like a waste of time and money. However, there are many benefits to taking out a quality life insurance plan while you are still young.
Do I Need Life Insurance?
Life insurance is more than just benefits your spouse or children receive after you pass away. It can help you plan for the future, configure your budget, and provide peace of mind in knowing your loved ones will be financially secure in the coming years.
With the right life insurance plan, you can borrow money for essential investments such as making a down payment on a new car or having access to financial assistance when needed.
How Much Life Insurance Should You Have?
If you are planning on purchasing a whole life or permanent insurance policy with a cash value, you must own the policy long enough so that your cash benefits will accumulate. Therefore the earlier you purchase one of these policies, the more you will be able to benefit from it during your lifetime.
Do You Need Life Insurance for a Mortgage?
Many times when you purchase a new home, it is required that you have an insurance policy in place that will cover the cost of your mortgage in the event of your death. That is an excellent precaution to take the burden off your family and ensure they will have a place to live if the unthinkable happens.
However, when you are already faced with payments for student loans and car purchases, it may seem unreasonable to take on yet another bill, especially when you are young and healthy. While making sure you pay off your current debt is significant, missing out on buying your life insurance policy in your 20s or 30s can substantially impact your economic future. Therefore, the sooner you purchase your policy, the better off you will be.
Is Term Life Insurance a Good Option for Young Adults?
Term life insurance is a type of insurance policy that covers you for the life of the term. For example, the term may be 10, 15, 20, or 30 years. This type of insurance is more affordable than whole or permanent life insurance; however, it does not come with the cash value option.
If you purchase a term life insurance policy, you will want to choose one that will last as long as you people who depend on your income. However, if you are considering buying life insurance before you are married or have a family, whole life insurance would be a better option because you are getting a head start on building up your cash value.
So, When Should You Get Life Insurance?
You may have asked yourself, “Should I get life insurance in my 20s?” The answer to this depends on your needs and plans for the future. The perfect time to buy a life insurance policy varies from one person to another.
It all depends on your family and your financial situation. In most cases, you need to purchase a life insurance policy if you have other people who rely on you financially or if you have a debt you expect will carry after your death. The older you get, the more expensive life insurance premiums cost.
Therefore, if you lock in a rate early, you will pay a much lower price for your benefits than others who waited much longer to buy a policy.
In many cases, it is better to buy life insurance when you are younger because you will be eligible for a much lower premium. Also, as you get older, you may develop serious medical issues that could cause your insurance rates to rise significantly or even disqualify you from purchasing a policy from many providers.
The High Cost of Waiting Too Long to Buy Life Insurance
Putting off life insurance for too long can cost you more than you or your family want to pay later. Whether you take out a whole life or term life plan, you will pay more for your premium as you age.
Additionally, waiting too long to purchase life insurance could jeopardize your chances of buying a policy at a lower price. Health issues are more likely to develop as you get older. If a serious health concern arises, your policy may be rated by a life underwriter, which means you will pay much more for your premium than someone who is healthier, or you may be declined coverage altogether.
Have Questions About Buying Life Insurance? Contact Us Today
Overall, it is recommended that you purchase a life insurance policy when you are young. The younger and healthier you are, the better off you will be.
No matter what type of insurance you plan to get, you will benefit from the lower cost due to your age. And if you are considering starting a family, it is wise to purchase a whole or permanent life insurance plan while you are young to make it much more affordable and allow you to benefit from the cash value over time.
Contact our experts here at Hometown Life Insurance today for more information on buying the right life insurance policy. We look forward to assisting you and answering any questions you may have.
