You should invest in life insurance early rather than later to prevent many issues that could arise if you do it when you are older. Likewise, it is wise to invest in a solid life insurance plan. But why should you get it while you’re young and what are the benefits?
Invest in Life Insurance Early
It is essential to invest in life insurance early because there are so many factors that could change as you age. The main reason is that your health could change, and the coverage could become unaffordable or even unavailable at any price.
Reasons to Buy Life Insurance
Life insurance is there to cover immediate cash needs upon death, such as:
- Burial costs — No matter how old you are at the end of your life, there will always be costs incurred for memorial services, funerals, and burial. The right life policy will cover those expenses, so your family isn’t burdened with the cost.
- Student loan debt — If you’ve decided to go to college, you’re probably relying on student loans to cover at least some of your tuition. The right life policy can pay off your student loan debts in the event of your death.
- Car loans and credit cards — Even in early adulthood, you’re probably already taking on some debts, including car loans and credit cards. If you didn’t choose or no one offered you loan life coverage, you could include these debts when calculating a life policy death benefit.
- Income replacement — You may have others depending on your income. If you are gone, a lump sum of cash can help make up for the income you can no longer provide.
THREE TYPES OF LIFE INSURANCE AVAILABLE
To thrive off a life policy, you need to choose the one that’s right for you. There are a few primary types of life policies to consider.
Term Life
Term life policies are valid for a predetermined period, such as 20 or 30 years. You choose the term and the death benefit. The premium is locked in and level for the entire term.
Whole Life
Whole-life policies remain valid for your whole life as long as you pay the premiums. These policies lock in a guaranteed death benefit and a guaranteed rate of return on your investment. You’ll pay many times more than a term policy, but it will remain in force until you pass away, regardless if of your age.
Universal Life
Universal life is a whole-life type of policy but with a savings component built in. You’ll have a cost of insurance, the minimum you must pay to keep the policy in force, and it will pay your full death benefit upon your death. This is also a type of permanent policy. As long as you pay the target premiums required, it can remain in force for your whole life.
Life insurance is important no matter what age bracket you happen to be in. Consider the expenses you might leave behind and what you want for your family members when choosing the right policy for you.
About Rodrian Insurance
Rodrian Insurance specializes in giving you insurance solutions that perfectly match your business and personal life. We provide insurance options that offer excellent coverage while remaining within your budget, based on a thorough understanding and assessment of your needs, circumstances, and financial capability. Find out more about how Rodrian Insurance can fulfill your insurance needs. Call or text us at (262) 781-4750 or email us at info@rodrian.com.
