Securing life insurance at any age is essential but securing life insurance when you’re young is particularly important. We know that may sound counterintuitive, however; there are immense benefits to obtaining life insurance in your younger years and here are five of them.
Lock in Great Rates
Did you know that when you purchase life insurance your premiums remain the same for the duration of the policy unless you change the policy coverage? Generally, a younger age means a lower premium. This reduces the total amount you’ll spend on life insurance over your lifetime. In addition to age, your current health is another determining factor in your policy rate. It is important to get insured before health conditions such as high blood pressure and high cholesterol develop so you can lock in those lower premiums for years to come.
Protect Your Loved Ones
As we get older, we often take on various debts – student loans, car payments and credit cards just to name a few. If something was to happen to you life insurance can protect your parents or loan co-signers from the burden of paying off your debts. Life insurance can also protect your spouse from the burden of paying the mortgage payments by themselves or grappling with losing the home entirely.
Discounts
Adding life insurance to your home or auto insurance often provides a multi-policy discount. Saving you even more money on your other insurances.
Protecting Your Children
Even if you don’t have children yet, you might one day. Securing a life insurance policy now means that as your children grow you will have a safety net in place for your children should something happen to you. The longer you wait to secure coverage the more expensive it can become and even more difficult to secure.
Build Credit
Should you choose a permanent policy instead of a term policy, you build credit with your life insurance. As the cash value of your policy grows each year you will be able to borrow against it. The sooner you retain the policy, the quicker the cash value grows.
The benefits to obtaining life insurance young are many: you can secure the lowest rate possible for decades to come, you can build your credit and you can rest assured knowing your loved ones would have a safety net in place in the event something was to happen to you. Locking in your life insurance now would mean that should you get the hard news of ill health; you would be covered at the same premium for the term of your life insurance and as you have paid down this policy you are able to draw from it for current financial hurdles as you focus on your health.
