If you're young and brimming with health, chances are you have never thought about buying life insurance. While thoughts about dying are certainly unpleasant, buying life insurance at a young age reduces the overall cost of coverage while also offering a slow and steady approach to investing.
In fact, the sooner someone buys permanent life insurance, the sooner they can start building guaranteed cash value that can be used in emergencies or during opportunities to protect loved ones.
Here are three reasons why young people should buy life insurance.
Hundreds of factors decide how much a life insurance premium costs, including the type of policy, death benefit amount and the applicant’s health. However, age is one of the most critical factors. Buying life insurance at a young age can significantly reduce the cost of your insurance premiums.
When a life insurance company considers an applicant, they will focus on the risk of a claim later in the future, the ultimate risk being the death of the applicant. As your age increases, so do health risks. Therefore, when you’re young and healthy and you purchase life insurance, your rates will always be based on the status of health at the time you purchased the policy. This can be a tremendous benefit if you were to ever develop any health issues later on in life, such as heart problems or diabetes, which may result in a higher premiums if you were to apply then.
Young People are in Good Health
Health is often loosely related to your age. The majority of diseases and impairments tend to develop later in life, and life insurance policies consider that. Generally, young people are in good health. For most people, the ideal time to purchase life insurance is while you're still young and healthy, which is when you're in your twenties or thirties. While that may be young, chronic conditions such as high blood pressure and cholesterol often appear when a person is in their thirties or forties.
If people decide to get life insurance when they’re older, they risk being unable to obtain life insurance at an affordable cost.
Build Guaranteed Cash Value
Life insurance is not only about the death benefits or protecting loved ones. It’s an integral part of a balanced financial plan and success. Young people who see the value of buying life insurance now will realize that it’s a stable part of their financial plan and health.
Many life insurance policies offer a slow and steady approach to investing. The cash value of your policy can be used to help you in emergencies or to supplement your retirement.
While nobody knows what will happen tomorrow (let alone the next five years), buying a policy while you’re young is a worthwhile investment.
Ready to see what this coverage can do for you? Call Mitchell & Mitchell Insurance Agency at (415) 883-2525 for more information on Los Angeles life insurance.