Most young adults don’t believe they need life insurance at this point in their lives. Most have always equated life insurance with death. What most young adults don’t know is having life insurance early in their lives can benefit their future in more ways than one. Life insurance is not just about a death benefit, it is also about a stable and successful strategic financial plan.
Besides thinking about the financial impact once you pass, how can having life insurance affect your future? Here are three important benefits to having whole life insurance as a young adult that we think everyone should know.
First, there are two different basic types of life insurance. Whole life insurance or term life insurance policies each have advantages. The simplest way to think about the biggest difference in the two is that one is for your whole, entire life and the other is for a specific term or amount of time. Whole life insurance is a type of cash-value life insurance policy that pays out upon the policyholder’s death, but accumulates value during the policyholder’s lifetime. This is money that is available if there is ever a need for ready cash, or it can be saved and passed on to your inheritors.
Term life insurance is written for a specified interval of time, usually between ten and thirty years. Once the term expires a new policy must be written. This new policy will take into consideration your current age, weight, and any health conditions you may have developed as you have aged. Once a term policy expires, it is simply over. There are many reasons why someone would choose a term policy, but it is advantageous to young adults to purchase a whole life policy when seeking life insurance and are financially equipped to do so.
Second, a life insurance policy depends on many different things—the type of policy, the death benefit amount, age and health at the time of purchase. What most young adults do not know is buying a policy at a young age ensures that your rate will be fixed regardless of any health issues that occur later on in life. Most life insurance policies require a physical exam and review of your past medical records. When you choose a whole life insurance policy, you will always hold the rate at the time of the original purchase, which is helpful to those who run into health issues later on in their policy.
Third, and lastly, buying whole life insurance at a young age not only saves you money, but it can help you accumulate wealth. The younger you are when you purchase your policy the cheaper your premiums will be. Most adults reach a point where they know it is not only valuable but necessary to hold a life insurance policy. Investing in a policy early ensures your premiums will be less expensive than if you wait until later in life, while also providing financial security to your loved ones.
Purchasing life insurance shouldn’t be something young adults ignore and doesn’t have to be as scary as you think. Once you have decided you would like to secure a life product, it is a great idea to call your insurance agent for an appointment to discuss your thoughts and concerns. We all know that no two people are the same and we provide attention to what your current situation is to determine the best product for you. Please call Whedbee Insurance at (865) 584-2275 to schedule an opportunity to discuss your life insurance options.