Why You Should Buy Life Insurance in Your 20s
Life insurance is probably the last thing you’re thinking about while in your 20s. However, there are many compelling arguments to be made for purchasing a policy sooner rather than later. These policies protect your loved ones and can also be useful for financial planning. Here are a few reasons not to put off insurance shopping.
Life Insurance Is Less Expensive When You're Young
Like other insurance products, risk is a significant factor in life insurance costs. That’s why it’s less expensive to secure coverage in your 20s. Younger people are less likely to have chronic medical conditions that require extensive care, which means they’re privy to lower prices. Waiting until you’re older means you’ll likely have to pay more for insurance.
These Policies Protect Your Family
Even if you don’t have a family now, it’s possible that you will one day. Life insurance provides financial assistance to your loved ones if you’re no longer able to do so. It can also help them cover end of life medical care bills, as well as costs related to funeral services and burials. Life insurance can provide peace of mind to the people you care about most.
They Can Also Be Used as an Investment Tool
Term life insurance covers a person for a specific term, usually ranging from ten to thirty years depending on the policy. This is quite different from whole life insurance, which covers a person until death as long as premiums are paid. Whole life is a great financial tool because it also has a cash value component, which can be borrowed when necessary.
Choosing the right life insurance policy is challenging, which is why working with a skilled insurance agency is so important. Ron Nall State Farm Insurance in Andalusia, AL, is here to answer any insurance questions you may have so you can make an informed decision. Along with life insurance, they also provide coverage for your home and auto, as well as health insurance, disability coverage, and policies for renters. To learn more or to schedule a consultation today, call (334) 222-3106.
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