The question on the table in this installment of Life Insurance Thursday is whether you may be too young for life insurance. Many adults in their 20’s or even their 30’s believe they are not old enough to have to worry about a life insurance policy. However, every situation may be different.
Young adult’s may feel like they are too young for life insurance, but you might find out that a life insurance is something you need and can afford. If you are a young adult and are considering a life insurance policy, review the benefits below. Many of the benefits, if you get a whole life policy, can be used as living benefits.
- Cash value accumulated can be used to pay for things like a starter home, education costs, or a wedding.
- As you age, and the need for the death benefit reduces, you can take out policy loans.
- Purchasing a life insurance when you are young, and ideally in good health, you will lock in your premiums at a lower cost then if you purchased a policy later in life.
- A whole life insurance policy can be used to help supplement your retirement income when the time comes.
Many young people question whether life insurance is worth it to them. What you need to keep in mind is that as a young adult, you are not invincible, you also will have more expenses later in life. Remember that eventually, you may have a family to provide for and you want them to be covered in the event that something happens to you. A life insurance policy is a great investment in your future, it can be affordable, and is something you can use to pay for things using the accumulated cash value.