When you’re in your 20s, having a life insurance policy may be one of the last things on your mind, but it’s also one of the best times to get coverage. Policies tend to be cheaper for younger people, and these rates can be secured for decades at a time. This brief guide seeks to explain how a policy can be beneficial, who should get one, and what policies are available. 

How Life Insurance Benefits You

Support for Loved Ones

In the event that the unexpected and unthinkable happens, having a life insurance policy could relieve your family and loved ones of a major burden. Between paying for medical bills and funeral expenses, an unexpected death can be surprisingly expensive. Usually, there is enough left over from the life insurance policy to help your beneficiaries stay afloat while they grieve. If you plan to get married or start a family, having this extra safeguard can make a major difference in how your family fares after you’re gone.

Protection From Debt

If you have any co-signed debts, a life insurance policy helps protect your co-signers from taking on your debt after your passing. Instead of them inheriting the outstanding debt, like from a student or home loan, your life insurance policy can be used to pay off your remaining balance.

What Type of Policies to Consider

Term

With a term life insurance policy, at the time you buy the policy, you pick a length of time, or a term, that it will last for. It’s common to choose terms of 20 to 30 years of coverage. Term policies tend to be less expensive, but renewing them or getting a new term policy after an old one expires may be more complicated or expensive, depending on your age and health. These are ideal for parents who want to guarantee coverage until their children are of a certain age. 

Permanent

Permanent life insurance policies tend to have more expensive premiums, but they offer you coverage no matter how long you live and what health conditions you may develop. They also tend to have smaller payouts. These are most commonly used to guarantee coverage for the policy holder’s funeral costs. 

If you’re interested in acquiring life insurance while you’re young, reach out to Western States Insurance Group in Lovington, NM. These professional insurance agents have decades of experience dealing with policies of all types. Learn more about their services online, and call (575) 396-1318 to schedule a consultation.   Follow Western States Insurance on Facebook for news and updates.