Insurance News
November 15, 2018
Adulting 101: The Right Time For Life Insurance

Life insurance: better to have it and not need it, than not have it and need it, right? But there are a lot of young folks out there who aren’t prepared for the worst case scenario because they don’t think they need life insurance.

Life insurance is kind of weird, in that it’s something you pay for now that doesn’t directly benefit you—instead, it benefits your loved ones later down the line. When you pass away, life insurance helps your loved ones cover the costs of the loss, like the funeral, debts you may have left behind, and the pressures of a one-income household.

You may be thinking that there’s no need to purchase life insurance now while you’re young and healthy, but that’s exactly the reason you should purchase it now. Plus, no one knows what the future holds, so it’s always good practice to be prepared for the worst.

“But life insurance is expensive!”

Right now, while you’re young and healthy, your premiums for life insurance are at the lowest they’re ever going to be.

It may feel like it’s expensive right now, especially a permanent policy compared to a term policy, because you’re not making a lot of money as a new professional out there in the workforce. But as time goes on, you will eventually make more money, and it won’t feel like such a burden.

Premiums don’t increase over time, so if you lock in that low price now for a permanent policy, you’ll be thanking yourself later down the line.

“I don’t have anyone who’s dependent on me.”

True—maybe you don’t have anyone dependent on you at this exact time in your life, but you may decide to settle down later in life. If you wait until you’ve settled down to get life insurance, premiums are going to be higher due to your age and any pre-existing conditions that may have emerged in the last decade or so.

Young and growing families are the most vulnerable when an unforeseen tragedy strikes. Suddenly and unexpectedly dropping from two-incomes to one can be difficult to bounce back from. Taking advantage of a permanent life insurance policy will guarantee that you’re family is taken care of for the long haul.

“I don’t plan on ever having anyone dependant on me.”

Most funerals can cost around $7,000-$10,000, an amount that most new adults don’t have just lying around. Life insurance can help offset those costs for the people who will have to pay them: your parents or spouse.

One more thing life insurance is good for is paying off debts that don’t disappear when you pass away, such as student debt. If you’ve got student debt, the burden could fall on your parents or spouse as well. Life insurance can help them pay off those debts.

It’s clear that life insurance is important, so what kind of policy is best for a young professional to take advantage of? Universal Life Insurance.

Universal Life Insurance is permanent life insurance with benefits from both whole and term life insurance. It’s got the long-term cost investment element of whole with the lower premiums of term. Find out more about how Universal Life Insurance can benefit you by giving us a call at: 215-538-1865.

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