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The best time to buy life insurance is when you are young, because that is when your premium payments will be at their lowest. As you get older your life insurance cover will get more expensive and you also run the risk of contracting an illness that might attract a further cost. Many young people don’t see it this way however. When you are young you have an inherent belief that you are going to live forever and life insurance is one of the furthest things from your mind. You will often hear otherwise responsible people advising young people that they have no need for life insurance, at least not while they remain single. Nothing could be further from the truth as life insurance is most important at all stages of your life.
There are four very good reasons why you need life insurance even though you may be young and single, these are:
- Funeral expenses:- We all understand that it is not pleasant to talk about your funeral when you are young, single and have your whole life to eagerly look forward to, but it has to be raised. You only have to slow down for a minute and consider what would occur if you were to die now. Would you have to rely on somebody else paying for your funeral? Even a cheap funeral will cost around $15,000 these days. Did you buy your car on credit? Who would pick up the tab for the amount left unpaid? Have you got any credit card debts that would be left for somebody else to pay? If you were to die while overseas who would pay to bring your body home? These are all valid question and all can be put to rest with a suitable life insurance cover.
- Health:- When you are young your health is usually quite sound, especially if you are active. Life insurance companies acknowledge this and take this into account when structuring your premium payments. Your acceptance for cover will also be at its easiest. As you get older you might find it harder to get life insurance cover especially if there is any evidence of cancer or heart related diseases within your family.
- Cheaper premiums:- The younger you are when you take out a life insurance policy the less you will have to pay for any given amount of cover. This is because the longer you have to live the more premiums you will pay and the less risk you pose to the life insurance company of you dying. As you get older your risk to the life insurance company increases as does the term of the cover. This extra risk is reflected in the increased premium cost.
- Lifestyle:- Young, single people are bigger risk takers than older people. This is probably because you don’t consider such things as dying as anything you should have to worry yourself about. However it is the very fact of you being young that means that you should protect those you love from being financially burdened as a result of your exploits, should something go wrong. When young you will want to experience everything you possibly can as fast as you can. Many of these experiences can be quite dangerous.
Whole Life Insurance is a Good Way to Start
When starting out in life a person should look to purchasing a whole life insurance policy. This is the most expensive of the life insurance policies but as its name suggests it is meant to last you the whole of your life and it can be quite cheap to purchase when young. The benefits derived from whole life insurance are that it will accrue a cash value as you live your life and it is a good source of funds to call on in your retirement years. It can also be left your family when you finally pass on, but in the meantime you will have enjoyed the financial protection it had given you.
Term Life Insurance Needed When Responsibilities Grow
When you marry and begin raising a family your situation changes considerably. You now have greater responsibilities and you will need increased life insurance cover to protect, not only yourself, but your dependants as well. Your loss could cost your family several hundreds of thousands of dollars. This is the time you should look to the cheaper term insurance to add to your whole life policy. Term life insurance is quite cheap and this allows you to purchase quite large amounts of cover that could pay out your mortgage, as well as ensure your family were able to continue living the life they had become accustomed to whilst you were there to provide for them. Term life insurance gives you the extra cover you need during your period of greatest vulnerability. If you survive the term the cover was taken out for you forfeit the premiums you had paid during the term of the cover.