The benefits of Life Insurance are obvious, but the benefits to buying them young may not be so obvious to the younger generation. Although Life Insurance is the last thing most people think about in their 20s, I would argue it should be one of the first. The bottom line is, your life isn't as invincible as it may seem & this thought may end up costing you or your loved ones a significant amount of money.
The Benefit of Buying Life Insurance In Your 20s
First off, let's make it clear that there are many different ways to make Life Insurance extremely affordable. There are also ways to make Life Insurance a retirement fund for you & your family in the event you need some funds in the future. The most reasonable way to make Life Insurance affordable is "Term Life Insurance". Term Life Insurance is life insurance within a determined number of years. For example, A 10-Year Term Life Insurance Policy for $250,000 can be as cheap as $12.50 a month. Now ask yourself this question. Is it worth $12.50 a month to give your family peace of mind in the event something happens to you? For most people a 10-Year Term may not be enough, another option may be a 30 year term. A 30-Year Term Life Insurance policy could be enough time for you to start a family, get them through school and provide for them until they are old enough to do so for themselves. For a healthy 22 year old, a 30-year Term Life Insurance policy with a face value of $250,000 can be as cheap as $37 a month!
The Benefit of Whole or Permanent Life Insurance
Buying permanent Life Insurance at an early age can help you build cash value. The idea of saving money for retirement can be applied to Whole Life Insurance, by setting money aside early for Life Insurance you can draw interest on your money for a longer period of time. The longer you wait to buy Life Insurance, the older you get. Unfortunately, the older you get, the more expensive Life Insurance becomes & the less time you have to accrue interest. So maximize your investment by getting permanent Life Insurance in yours 20s.
So the key to knowing whether or not you should purchase Life Insurance is by envisioning your future. Do you plan to, at some point, have a family? Do you want to see your family suffer financially if something were to happen to you in the future? Do you want to leave your parents with the expenses of your life? Sometimes it is hard to think about these things, but it is necessary. Prepare for the unplanned.
jake [at] bp-ins [dot] com