There are many reasons, the first being that it is usually in the time from late teens to mid twenties when most people accumulate large amounts of debt. This can start off with college fees, car loan, credit card bills etc. If a young person dies before they get married then their parents are the ones that will end up having to take on the responsibility of paying for this debt. Now many people will not have considered this, but would not want that to become the case and for that reason might consider taking out life insurance at a young age.
It is a good time to take out life insurance for financial reasons also. At this time in life, people will generally be very low risk to insure as they are young and healthy. Taking out whole life insurance at this stage in life could prove to be a very sound investment if they develop health issues later in life. Taking insurance out at this time becomes costly and in some cases unaffordable.
Some term life insurance policies can start from as little as $10 per month for 18 year olds, and this could entitle them to a payout of up to $40000 in the event of their death. This could become very important as they grow older and gain more personal and financial responsibilities such as a family and mortgage. A 23 year old can take out a whole life insurance policy for as little as $27 per month that provides a cash value and death benefit payout of $50000.It is well worth considering getting life insurance in your early years whilst you are still fit and healthy. Depending on what type of insurance you choose to go with, you may be able to save by a sizeable amount of money to use as a down payment for a house or for medical expenses.
With such an important investment, it is important do make sure that you are making the right purchase. This means doing a lot of research and ensuring that the company you choose is reputable and is likely to remain stable. It is important to ensure that the cover is the right policy for you. Depending on your lifestyle, you may need specialist cover.
It is also very important to make the right choices with regards to choosing a suitable beneficiary. It is vital that you review your policy and choice of beneficiary etc on a regular basis. If you get married for instance, you need to ensure that you update the policy to reflect that your spouse is then the main beneficiary.
No comments:
Post a Comment