If you have reason to believe you’re too young to purchase life insurance, it’s imperative to take a step back and reassess your situation.
It’s easy to believe that you don’t need coverage, but waiting could be one of the biggest financial mistakes you ever make.
I Don’t Have a Family or Many Bills
When you are young, such as in your early 20’s, you may not have a family. Along with this, you may not have many bills.
For this reason, you may think you don’t need a life insurance policy. After all, nobody is relying on your income.
Even though this line of thinking makes sense, at least at the present time, it’s important to turn your attention to the future.
No, you don’t have a spouse and/or children right now. And no, you don’t have many bills. But remember this: your life is sure to change as the years go by. This is reason enough to at least consider the purchase of coverage.
Buy Young, Save Money
Here’s the one thing you need to remember: the younger you purchase life insurance the less it will cost.
When a life insurance company reviews an application, one word comes to mind: risk. Taking this one step further, the biggest risk to a life insurance provider is death.
When you are young, there’s a better chance that you have many years ahead of you. This is in contrast to a consumer in his or her 60’s, who may be closing in on the end of their life.
Buying young means the life insurance company has more time to collect premiums. In the event of whole life insurance, this means you will pay a premium until the day you die. The younger you are the more payments you will make.
With term life insurance, the life insurance company is also in a good position. Since there’s a good chance you’ll outlive the policy, the insurer receives regular premium payments without ever having to pay out a death benefit.
Of course, it’s not all about the insurance company making out. As a consumer, buying young means that you’ll pay less money.
Since you’re many years away from the end of your life, insurers are more likely to offer you coverage at an affordable price.
Young Often Means Healthy
As you age, there’s a greater chance that you’ll face some type of health concern. And as you know, this isn’t something that’s good for an insurance company.
If a person has an increased risk of heart attack or stroke, which is typically the case among those who are in their 50’s and 60’s, insurance companies have no choice but to charge a higher premium. This is the only way to mitigate their risk.
Conversely, when you’re young, in your 20’s or 30’s, you’re probably as healthy as you’ll ever be. This means that insurance companies will charge you less for coverage.
If you can purchase a policy before health conditions arise, you’re going to save money. There’s no two ways about it.
If you’re young, it’s only natural to believe that you have time to purchase life insurance in the future. And while you do, this isn’t something you necessarily want to put off.
Generally speaking, you’re never too young to buy life insurance. With this in mind, now may be the time to review your finances, request quotes, and see what type of deal you can get on a policy.
About the Author
Tom Rojas specializes in life insurance. In particular he helps clients with Whole Life Insurance Quotes Online and Life Insurance for Non U.S. Citizens. Through his career he has helped hundreds of clients purchase life insurance.