Life insurance is one of those things a lot of people don’t want to think about until they’re “older.”
At Expat Insurance, we get it! Most of us don’t want to think about dying, and most young people assume they’ll have time to deal with it later.
The reality is that life insurance should be an important part of your future’s overall financial plan. The sooner you get started putting your plans into action, the greater benefits you’ll reap down the road.
“The reason you have insurance is to provide protection for the people you're going to leave behind," says Marc Bell, Life Insurance Advisor at Expat Insurance.
Here are 4 reasons why buying life insurance at a young age is a smart move.
The early bird gets the best deal
Insurance may be much more obtainable—and less expensive, when you’re young and healthy. This is because as people grow older, their health and longevity tends to decline. Therefore, the older people are, the higher their premiums will be. By purchasing life insurance at a young age, such as in your 20s, you more than likely will pay lower premiums for the term of the policy.
Getting married
If you’re married and have a family, or plan to get married and begin a family, how will your spouse and children carry on should something happen to you? Taking out a life insurance policy and designating your spouse as your beneficiary will ensure he or she is taken care of in the event of a tragedy. Life insurance can help pay off loans, mortgages, school fees and other expenses for your family.
Outstanding loans
In your twenties, you may have a significant student loan debt, or even a home mortgage for which your parents, a friend or other relatives have co-signed. Should something happen to you, your loved ones would be left to pay your debt. A term life insurance policy could help protect your loved ones from unwanted financial burdens.
Income Support
If you’re the one taking care of your aging parents, how would they financially survive if you weren’t around to support them? According to a 2015 study, 1 in 5 millennials financially supports a parent, with an average outlay of $12,000 a year. A life insurance plan would provide a cash payout to your beneficiaries in the event that anything happens to you. While the policy does not lessen the pain of losing a loved one, it would at least ensure that financial hardship is not an additional area that your dependents will have to be worried about.
As an individual, having sufficient life insurance is important in giving you a peace of mind that your family members will be taken care of financially if you are no longer around.
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