Too Young For Life Insurance? Probably Not.

It’s a common myth that you needn’t invest in life insurance early in life. That’s actually not necessarily true. The reality is that getting a life insurance policy early may pay huge dividends when planning for the future. By comparison, few people acquire life insurance coverage between 18 and 45, but there are many reasons to get life insurance during this time.

The most important question is “Are supporting loved ones whose livelihood depends on your income?” If the answer is yes, then you should be looking at life insurance to guarantee their future.

Commonly, people wait because it is believed that life insurance is only needed later in life and want wait until expenses decrease. Life insurance has been long viewed as only for “old people.” When you are 30 or 35, you focus on the long life ahead of you. Financially speaking, it may make sense to acquire life insurance coverage now.

1.Your health is in great shape. Most shop for a life insurance policy in the 50’s and 60’s. At that age, your health may be different and it may be more difficult to qualify for affordable life insurance. A multitude of things can cause premiums to spike, so why not get the coverage you will need someday, while you are in your prime.

2.The cost will be a lot less. Life insurance premiums are based upon your current age and life expectancy. Since you are younger, the premiums will be less since they will be based on a longer life expectancy.

Some studies have cited that premiums for standard risk-term life insurance policies have dropped as much as 50% between 1994 and 2007. This can be credited to the fact that people have been living longer. Even cash value policy premiums have decreased an average of 4% per year since 2000.

If you are single, you may also want to look for a term policy that can be converted to permanent coverage at a later time. It’s a way to protect your insurability, even if your health changes.

As we all progress though different stages of life including marriage, having children and retirement, our needs for life insurance change and typically increase. If you are considering life insurance, your timing might just be perfect.

Wishing You Wealth in all its Greatest Forms,

Alex