Buying a life insurance policy may be one of the last things on the average twenty-something’s mind, but there are actually a handful of reasons that young people are in a better position than any other age group to purchase life insurance.
Life Insurance =/= Death Insurance
Contrary to popular belief, life insurance isn’t only useful after the holder passes away. Many policies, including whole, universal, and variable options, can accumulate cash value over time that can be accessed while you’re still alive and kicking, so long as you keep up with your premium payments. This cash value also isn’t affected by market fluctuation and lasts for your entire life and then some.
The Sooner You Buy, The Cheaper It Is
Being young provides a serious cost advantage when it comes to buying life insurance, and this price reduction isn’t just a one time thing. With most life insurance policies, if you purchase one when you’re young and healthy, you’ll qualify for lower premiums for the rest of the payments you have to make until death. For an annually-paid term policy, this could save you a few hundred dollars over the course of two or three decades. But for a monthly-paid whole/universal/variable policy, you could be looking at the difference between paying $100-$200 per month for life, or close to $1,000 per month for life (if you’re around the age of 50) for the exact same benefits.
Life Insurance Doesn’t Change, Even If Your Health Does
If, and this is an important “if” here, you get yourself into a life insurance policy while you’re young and healthy, your premiums won’t increase should you develop a disease or other medical condition later on in life. This can be particularly useful if you have a family medical history that includes diabetes, high blood pressure, high cholesterol, cancer, or heart disease, as individuals that fit this description are more likely to develop a matching condition or conditions as they age, but can lock into a life insurance policy while they’re young and healthy and be guaranteed the same premiums that someone with no bad family medical history would pay for the duration of the policy, even if they do end up getting sick.
Protect Your Family From Inheriting Your Debt
Life insurance doesn’t just cover funeral costs should you die unexpectedly. Lots of twenty-somethings have a pile of student loan debt these days, and if you fit this bill, purchasing a life insurance policy can actually protect your parents or other cosigners from inheriting your debt should you die unexpectedly.
While obviously not every college student, recent graduate, or young professional is going to be able to work a life insurance policy into their budget, if you are young and have some disposable income, purchasing life insurance can be one of the smartest and safest financial options out there. Don’t write off the advantages that can be provided by life insurance for young people, and don’t forget that if you buy or have already bought life insurance and decide you want to sell it, you can! Learn about the value of your life insurance policy, the selling process, and more on the Coventry Direct website.