Why You Should Purchase Life Insurance When You’re Younger

May 6, 2019 by Susan Paige

Today you are young, healthy and able-bodied. You have a lot of years ahead of you, so why would you even consider life insurance? With no kids or family being left behind, no one who has to be taken care of it simply seems like a waste of money. So, why then would you buy life insurance?

Because you could save a lot of money.

The Younger You Are, the Cheaper You Are

When awarding a life insurance policy, insurance companies are looking at the viability and risk of the candidate. Some financial experts say there are financial benefits to getting life insurance in your twenties.

Someone who’s in their late 40s with a family to take care of and isn’t as chipper and healthy as they were 20 years ago is a much bigger risk than someone in their 20s. Their health insurance policy is going to be more money because, at the end of the day, they’re more likely to cash it out.

But in your early 20s, with your whole life ahead of you the chances are good that you’re going to be leaving that insurance payout alone for a very long time. So you’re way less of a risk. Less risk typically equals cheaper cost.

The Healthier You Are, the Cheaper You Are

In your 20s, you also tend to be healthier than someone ten or twenty years older than you. Which, again means that you’re less likely to be cashing out those particular benefits.

Just like being younger, the healthier you are means it’s that much less likely that you (or your loved ones) will be cashing in on that life insurance policy of yours. That’s money in your insurance company’s pocket and they’re likely to reward you for it with a lower monthly rate.

The Earlier You Buy, The Less You Pay

Unlike with car insurance where they ding you for being young because you’re a new driver, life insurance payments reward you for being young.

As we talked about earlier, being young typically means having a longer life ahead of you and being healthier, so the rates that you get tend to be much better then you’ll get a decade later.

A plan that you sign up for at 25 might cost you $75 a month, but that same plan at 35 could be over $120 a month.

Why Buy Life Insurance?

Life insurance, in general, seems like a strange choice. Even if it’s used, chances are it won’t be you using it. If you had the misfortune of having to claim a life insurance policy, you might already know that insurance companies will try to deny your claim for any possible reason. Get in touch with professionals to deal with a delayed life insurance claim.

It’s a long-term plan. While you might be single with no children today, sometime in the future it’s possible you’ll have some people who rely on you. If that’s the case a sudden loss of your income or the debts you have could leave them in a bind.

Even now, if you have any debt that’s been co-signed (like your student loans), if you pass away your co-signers will be still on the hook to pay it off.

Life insurance is a contingency plan, one that you’ll hope is never used (at least not any time soon) but should be prepared for regardless. And getting it younger tends to mean getting a better price.


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