4 Reasons to Purchase Life Insurance in Your 20s and 30s

Today’s adults between 20 and 30, members of the so-called Millennial generation, have been waking up to their need to buy life insurance. This is the generation that is just now moving into their own places, graduating from school, and starting their careers and families.

4 Reasons to Purchase Life Insurance in Your 20s and 30s
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Common events that tend to get people to think about covering their lives might include buying a first home, getting married, or even starting a business; and these are things that adults in this age range tend to do quite often. This leads to considering life insurance as a way to take care of certain obligations that people take on as they enter into adult life.

Even 20- to 39-year old people who aren’t married, don’t have kids, rent their homes, and work for somebody else might consider the benefits of purchasing a policy early and not later. It can be an important part of personal financial planning. If you have your own policy, you can take it with you if you change jobs or even change careers, so you don’t have to count upon an employer for coverage. The good news is it’s easier than ever to compare rates online.

4 Reasons to Shop for Life Insurance Early in Life

Certainly, young adults have many good reasons to buy life insurance in their 20s and 30s. This covers a few of them:

1. Life Insurance Premiums Are Cheaper

Life insurance companies might consider a few factors when they decide how much to charge an applicant. Two of the most important things they consider are health and age. As you probably already know, premiums increase as people age.

Insurance companies also charge more for people with certain health conditions, so it’s cheaper to purchase coverage before typical health issues of middle age start cropping up. Younger and healthier applicants get preferential premiums.

2. Life Insurance is More Accessible

Insurance companies might decline applicants who are too old or who suffer from a pre-existing health condition. Even if you can buy coverage when you are older, insurers might limit the amount or the type of coverage that they will sell.

It’s best to consider buying a policy while you are still young and able, so you can enjoy more choices for types of life insurance and the amount of coverage you can obtain. If you wait until you are already ill, you will have more limitations on the kinds of policies that you can get accepted for.

3. Cash Value Life Insurance Can Grow

Term life insurance doesn’t have a cash value; however, universal and whole life policies do. In addition to offering coverage for your entire lifetime, you will also have a policy that can serve as an asset. Later in life, you may decide to cash in, borrow against, or even sell your policy if you need money.

Certainly, term life insurance costs less, but cash value life insurance will be cheaper in your 20s and 30s than it will be when you are middle aged or elderly. The longer you have your policy, the larger the cash value will grow.

4. Protect Those You Care About

Perhaps you have heard the saying that no widowers or widows every regretted the fact that their spouses had life insurance. An affordable life insurance policy can make sure that your kids have the funds to make it to college graduation. It can ensure that your spouse has money to pay the mortgage or that your elderly parents are taken care of. You can even leave the proceeds to a favorite charity. If anybody relies upon your income, you might consider making them a beneficiary of your life policy.

Unless you are already very wealthy, a life policy is an affordable and sensible way to handle this aspect of personal financial planning. The most important reason to purchase life insurance is to make certain that you take care of your obligations in case you pass away.

You Can Find Affordable Life Insurance at Any Time

Certainly, it’s much easier to find a wide choice of affordable policies shortly after college graduation. However, people of almost any age can find some sort of coverage. The good news is that comparing premiums and kinds of life insurance is much easier than it has ever been in the past. It’s also easier to apply than it used to be.

Top insurance companies will allow you to compare life insurance quotes online, and some will even allow you to apply the same way. This makes the process of buying coverage much simpler and more transparent than it has been in the past. You don’t have to put off shopping for or purchasing life insurance because you think that it’s a time-consuming or difficult task.

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