It’s a common misconception that someone can be “too young” for life insurance. If you’re in your 20s or 30s, you may think that having life insurance won’t benefit you at this stage of your life, especially if you have no dependents. But the truth is that this is an excellent time to consider life insurance for many reasons.
Here are a few reasons why getting life insurance when you are young can be a good idea:
- Lower Premiums – When you are young, you can generally get life insurance at a lower cost because you don’t pose as much of a financial risk to insurance providers. The statistical odds of you passing away are lower than they would be if you were older, so insurance companies may charge you less. Since buying life insurance is not as expensive when you are young, taking advantage of this might be a good idea.
- Build Cash Value – Some types of life insurance have a cash value component, which is an investment feature that earns interest and may be available for you to withdraw or borrow against. Whole life and universal life insurance are two types of life insurance that include a cash value component.
- Debt Coverage – If you have co-signed loans, perhaps for schooling, your co-signer could be financially responsible for your debt if you were to pass away prematurely. Life insurance can pay off your debt so that your parents or other co-signers don’t have to inherit your debts.
If you’d like to learn more about your life insurance options at any stage of life, please give our team a call today.