If you’re a young adult, buying life insurance probably isn’t a priority right now. After all, you most likely don’t have children or a spouse, and finances are probably tight if you’ve just entered the workforce. So why should you consider taking out life insurance when you’re young? Do you even need it? We look at five good reasons why you should consider taking out cover now for a more comfortable tomorrow.
Lock in Your Premiums
The younger you are when you take out a policy, the lower your premiums can be. So, when you consider that your premiums will remain the same throughout the term of the contract (unless you change the amount of coverage), it’s likely to reduce the amount you’ll spend on insurance overall. The rates you’ll be offered in your 20s and 30s can be considerably lower than those offered when you take out a policy in your 40s or 50s. Plus, when you’re young, you’re less likely to suffer from health conditions such as high blood pressure, which can raise the cost of your policy.
Protect Your Loved Ones
While you may not have children or a spouse yet, your parents most likely helped you to finance your education or co-signed on other loans. In the event of your death, the full responsibility for these debts will pass to them. Having life insurance in place will help to pay off these debts and release them from this financial burden. Taking out a simple term life insurance policy is an affordable way to cover your mortgage payments. If you have a partner and a mortgage, the right policy will protect them from having to cover the remaining amount alone or potentially risk losing their home. If you no longer need cover or the policy has already served its purpose before the term is up, you can sell it to a third party for a life settlement rather than simply letting it lapse. Jumbo reverse mortgage is another way to get home equity and protect your loved one.
Depending on the type of contact you take out, you may be able to borrow against it in the future based on its cash value. The younger you are when you buy your policy, the more time it will have to grow in value. View your investment as a potential line of credit should you require extra funds in the future.
Put Protection in Place for the Future
Getting life insurance now means that you can protect your dependents in the future. You may not have a partner or children right now, but fast forward a few years and you could be married with kids. You might just find yourself in a situation where you’re financially supporting your ageing parents who would struggle without your income. If you wait until these situations arise, you could find it more difficult and expensive to get the coverage you need.
Take Advantage of Discounts
If you’ve already taken policies for your car or home, you may be offered a discount if you take out life cover with the same company. These discounts can help you to save on your overall costs and give you some peace of mind that your loved ones will be taken care of if the worst should happen.
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Whether she is researching the latest trends in home decor, life-changing destination getaways, or the best way to maintain your finances, Dewey takes pride in leaving no stone unturned. She is passionate about distilling and delivering high-quality information that you can use to upgrade your life.