Why It’s Best to Get Life Insurance While You’re Young and Healthy

Chances are, you’ve heard advice to get life insurance while you’re young. For young adults, life is often complicated and financially draining enough without extra premiums. Additionally, most people do not like to think about their own mortality. As a result, they tend to put off seeking a life insurance policy until they “need” it. While most people agree that life insurance is a must for most adults, many people don’t know how to buy the right type of life insurance. Even more people don’t understand why it’s important to get life insurance as soon as possible. The reality is that life insurance is a good investment, and there are several reasons why it’s a smart idea to get it while you are young and healthy. Believing that individuals have plenty of time to consider life insurance is generally correct. However, people often ignore the fact that young, healthy people receive the best life insurance rates. Waiting to apply for a policy might sound like a decent idea, but putting it off for too long can mean much higher premiums in the future. For this reason, it’s good to consider when you’re young. Keep in mind that time is never guaranteed to anyone. While we’d like to believe that our youth and healthy behaviors mean that we will live long and happy lives, that is not always the case. Unfortunately, accidents happen and illnesses can impact individuals. This is true even if they have done their best to live a healthy lifestyle. Rather than waiting for something to go wrong, it’s a better idea to be proactive.

Why Would You Buy Life Insurance?

Life insurance is generally thought of as a good investment. The reality is that life insurance coverage can be used to pay off other debts or provide a lump sum payment to beneficiaries. It can also provide financial protection to your family. Perhaps you have mortgages, auto loans, or student loans from college tuition that you wouldn’t want to be handed over to your closest ones in the event of your death. If you have ever lost a loved one, you know how hard it can be to go on without them. If you have certain people, like children or spouses or siblings, who rely on your income, you want to make sure to have a death benefit. This way, they will be able to more easily provide for themselves after you are gone. It will also prevent any financial stress that could arise with your death, such as funeral costs. In addition, life insurance is also useful if you are worried about the possibility of having medical bills or other expenses when you’re older. It can be a good way to help ensure that these costs won’t burden your family. The biggest reason why it’s important to get life insurance while young and healthy is because it allows people to accumulate wealth over time instead of having their finances taken away by an unexpected event like an illness or accident. It can also help protect individuals from losing their home if they become too sick or disabled to work.

Understanding the Types of Life Insurance: Term vs. Whole Life

Life insurance is designed to pay off a specific amount of money when an individual dies. It is a vital part of financial planning. While there are many different types of life insurance, the two most common and affordable life insurance options are term life and whole life.

Term Life Insurance

The most common type of life insurance is term life insurance, which covers a set period of time for a set amount. Term life insurance provides coverage for a specific period of time, typically 10 years. The amount that you pay for the term life policy is typically based on your age and the amount of coverage you need. Once the policy for a term life insurance expires, you will no longer be able to receive any additional payments from the company. Term life insurance is usually a more affordable option than whole life insurance because it’s cheaper to renew your policy when it expires. However, the term life option does not provide coverage for your beneficiaries after your death.

Whole Life Insurance

On the other hand, you have the whole life insurance, which is also known as the permanent life insurance. Whole life insurance offers permanent coverage with no expiration date. Permanent policies offer a guaranteed death benefit that can be used to pay off debts or make other financial decisions for beneficiaries in the event of an individual’s death. In addition to a death benefit, permanent insurance also grants you the accumulation of cash value. The cash value component refers to the interest that gathers over time. You can use the extra cash gathered from cash value, which is tax-free, for other life events even before your death. Because there is no expiration date on permanent life insurance, it can be difficult to compare costs between companies because they each have their own terms and conditions that apply when they issue policies. However, whole life policies tend to issue a less affordable premium than term policies. This is because they have fewer limitations regarding premium increases or reductions during term.

Benefits of Getting Insurance Young

Better Health Equals Better Cost

As you may already know, insurance companies are businesses. They make money by charging premiums to policyholders. Therefore, it makes sense that they would charge more for policies that cover people who are sick or elderly. However, the reality is that individuals in excellent health often receive better rates than those who are older or in poor health. This is because insurance companies look at your health history and your family’s health when determining how much to charge you for a policy. When you‘re young and healthy, you‘ll be in excellent health for longer than someone who is older or sicker. As a result, you‘ll likely pay less on your life insurance policy over time.

Life Insurance Gets More Expensive with Age

One of the factors why you should get life insurance while you’re young is that the cost of life insurance gets more expensive as you get older. As you age, your risk of having a premature death increases. Therefore, it makes sense that your life insurance cost would go up as you get older. However, the reality is that life insurance premiums actually increase at a higher rate than the general cost of living. This means that the cost of your premium payments will likely increase at a faster rate than your income. This means that as you get older, the monthly rate for your premium will likely rise more quickly than your income and expenses do. As a result, getting life insurance if you’re young and healthy will likely cost you more affordable rates. This can be especially true if you have significant savings or other assets in order to pay for any outstanding costs associated with purchasing a policy when you’re older or sicker.

Term Life Insurance Can Cost as Little as $16/Month

If you’re young and you have a spouse or small family, it’s even more important to consider applying for life insurance. Because anything can happen at any time, you may want to have all your bases covered. Even if you’d like to leave behind enough money to cover funeral expenses, it’s in your best interest to apply for and obtain some form of life insurance. Additionally, you no longer have to aim low when it comes to significant coverage. There are apps you can use to find a policy that offers various benefits while being affordable at the same time. The Bestow app, for example, can help individuals obtain up to $1.5 million in coverage from $16 per month, if approved. The older you get, the more you can expect to pay high premiums for less coverage. Even for healthy older people, the rates are not going to be as promising as they are for young people. If you develop a chronic illness between now and the time you decide to purchase a life insurance policy, you can also expect to pay much more in premiums. As you can see, there are many reasons to get life insurance while you’re young. If you have your health and youth, it’s in your best interest to seek out financial advisors to work out some planning. This way, you can determine what sort of coverage is available to you and get some peace of mind knowing that you have financial security. There’s no harm in getting quotes and comparing options.

Life insurance quotes provided by Bestow Agency, LLC dba Bestow Insurance Services in CA, who is the licensed agent. Term Life Insurance Policies offered by Bestow are issued on policy form LS181 and LS182, or state version including all applicable endorsements and riders, by North American Company for Life and Health Insurance®, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193. Products or issues ages may not be available in all jurisdictions. Limitations or restrictions may apply. Not available in New York. North American is rated A+ (Superior) by A.M. Best. A+ (Superior), the second highest rating out of 15 categories, was affirmed by A.M. Best for North American Company for Life and Health Insurance as part of Sammons Financial Group on August 19, 2020. A.M. Best is a large third party independent reporting and rating company that rates an insurance company on the basis of the company’s financial strength, operating performance and ability to meet its ongoing obligations to policyholders. Our application asks about your lifestyle and health to avoid requiring a medical exam.