Buying Life Insurance: The Younger, The Better

Buying life insurance is one of the most important things you’ll ever purchase: not only does it provide you peace of mind, it can also set the minds of friends and family at ease as they’ll know that you’ve planned ahead in case the unfortunate happens.

However, some people think they don’t need life insurance until they get older. There are plenty of people in their 20s or younger who think that they don’t need to buy life insurance yet, but in fact, life insurance should be bought as soon as possible, even if the insured is only a year old. So if you’re young, don’t have a family (or even a significant other) then what would you need life insurance for? There a few things to consider in order to figure out if a life insurance policy is for you.

Who do you think would be impacted financially upon your death?

Even if you don’t have five children, or even one, consider your other financial obligations that involve others. For example, what if your mother co-signed for your auto? If so, then your mother would still be held responsible for making payments on a car that isn’t driven anymore. If you have maxed out credit cards, are living with family, and especially if you’re contributing financially to whomever you live with, then you need life insurance. In every one of these scenarios, someone else has either taken on part of your financial responsibility or you’ve let them become reliant on your financial contributions. All of these financial burdens would even be in addition to the costs of a funeral or burial expenses.

Does your family have a history of serious illnesses or other health problems?

If so, remember that the younger you are when you buy health insurance, the cheaper it will be and the easier to will be to actually get approved for a good life insurance policy that will provide more coverage, especially if you’re in great health. However, waiting until you’ve experience health problems and/or until possible health risks for you are established according to your family, then you’ll be looking at either extremely high premiums or you stand to be disqualified completely and won’t be able to get health insurance at all. When you’re young, you can obtain quotes from agents and even be able to afford extremely higher limits than you would if you wait, so waiting until later may cause you to be able to get only a smaller amount of insurance coverage. Just like most insurance policies, it’s actually not that much more expensive between $50,000 or $100,000 in coverage. However this is only true if you’re able to get these amounts at a reasonable price when you’re young, and you can additionally usually lock in the rates that you initially get.

Don’t be completely phased by lower premiums: always look at the coverage you’re getting.

Consider getting a whole life insurance policy or a universal life policy. These policies can actually help produce equity for you and better yet, you may be allowed to withdraw these as cash value for any emergency you may experience down the road, sort of serving like a long term savings account that will allow you to use just a bit. There are even companies that will allow you to take a larger sum from the policies if you’re ever diagnosed with a serious terminal illness and can’t pay all of your bills due to being laid off, losing your job, or not being able to find work due to your illness, you can use these funds, additionally if you just need to use them while you’re waiting on becoming approved for disability or social security payments.

Don’t let the idea that just because you’re young that you don’t need life insurance. In fact, there’s no better time to buy life insurance and will get much better rates as well as a higher likelihood that you won’t get denied for an insurance policy. Sometimes for only $30 a month you can get a great life insurance policy and be set for life. The little bit of money it will costs is well worth it, as all it would take is giving up going out to eat once a month, and hence, you’ll have coverage to last a lifetime.