As a young person, you’re enjoying some of the best years of your life. With so many plans on the go, life insurance may be the last thing you’re thinking about. Typically, life insurance may not seem like a product a young person needs, especially when healthy – yet this is often the very reason why securing this coverage now can be beneficial. In fact, there are plenty of reasons why life insurance can be a key part of financial planning even earlier on in your life.
Here are four reasons why life insurance, while you’re young, is a good idea:
- Lower PremiumsWhen you’re younger, you’re typically healthier. This means that your risk of passing away is lower. When a life insurance provider considers your application, they’ll use your age and health history to determine how high your premiums should be. Since you’re younger and healthier, you pose a lower risk in their eyes, and as a result, you’ll likely be expected to pay a lower premium. This can work in your favour if you are purchasing permanent life insurance because your premiums will be locked in at a lower rate than if you were to apply for permanent life insurance when you are older. For this reason, if you can afford to, you may want to consider getting permanent life insurance instead of term life insurance.
- Protect Your Loved OnesProtecting your loved ones could apply at any age. When you’re young, you could have people in your life that are relying on you financially, including children, siblings, partners, or other individuals. Should something happen to you, how would these individuals afford their current lifestyle without your help? To ensure they have the financial safety net they need, you can list them as your life insurance beneficiaries and always have peace of mind that they’re taken care of.
If you were to pass away, your loved ones would need to cover your funeral and final expenses, any leftover mortgage debt, etc. These costs have been rising across the country and can be an exorbitant expense. With a life insurance policy, you can help ensure that your death benefit will cover these costs instead of your loved ones having to foot the bill. When you financially prepare, you’ll ensure that you aren’t burdening others with these costs long after you’re gone.
- Get Coverage EasierLife insurance companies will use the information you provide them to determine if you qualify for coverage. When you’re younger and healthier, it’s easier to get the coverage you want (because you have a longer time left to live). Life insurance providers may not want to give you coverage when you’re older and less healthy since there’s a higher chance you’ll pass away. Consider applying for life insurance while you’re younger to secure your coverage. Later in life, you may have unexpected health issues that could make getting coverage difficult, depending on the life insurance provider.
- For the FutureAlthough you may not feel you need life insurance when you’re younger, it may be appropriate to consider securing coverage now if you have specific plans for the future. If you are confident you will have children later on, a hefty mortgage, and other expenses, then securing coverage now while it’s more affordable will help you save on higher permanent life insurance premiums down the line. For some people, the upfront expense of paying premiums earlier may not make sense. But if you can afford to get coverage earlier, consider applying while you’re young to reap the savings later, when you truly need the protection.
How to Purchase Life Insurance
It can feel overwhelming and perhaps confusing finding the right life insurance option as a young person. Educating yourself on how life insurance works and the options available can also be time-consuming. The Keller and Associates Insurance Brokers team has the experience and expertise to guide young people like yourself and help you find affordable life insurance options that can protect your loved ones financially at this stage of your life and in the future. Get in touch, and we’ll help you find the right protection.