5 Reasons To Purchase Life Insurance At A Young Age

When most individuals are young, life insurance is the farthest thing from their mind. It's easy to put life insurance on the back burner when all one thinks about is a long life beset with expenses like rent, mortgage, car payments, and student loans. Unfortunately, financially delaying the purchase of life insurance has dire consequences, including a lack of coverage for funeral expenses and loved ones, and the destruction of retirement savings. Young people are eligible for a great deal of coverage for little cost, and all who buy life insurance while young are glad they did in the future.

Start reading to learn about the advantages of buying life insurance while young.

Cheaper Premiums

As every birthday passes, buying life insurance becomes more expensive. For example, with each birthday an individual has, the cost of term insurance increases an average of ten to twelve percent. Imagine paying an extra ten percent for life insurance every month for a twenty-year term policy. Waiting a decade means paying twice as much. When individuals wait until they are much older, the monthly premiums become punishing. The only way to fit life insurance into the household budget is to cut the coverage amount, leaving the beneficiaries underinsured. Compared to term life insurance, whole life insurance provides more comprehensive coverage, but at a much higher cost. Because of its expense, purchasing whole life at a young age is the only way most can afford the premiums on a policy with significant death benefits. The cheaper premiums are more than monthly cost savings and allow the purchase of a meaningful amount of permanent coverage. For universal life policies, the case for buying young is even more compelling. Universal life policies build a cash value that covers the rising cost of insurance that comes with age.

Continue reading to learn about how cash-value comes into play.