Reasons You Need Life Insurance At Any Age

September 16th, 2022 abriinsurance

When most people think about finding a life insurance provider in North Charleston, they picture some man or woman who is getting on in years, but that is a misnomer that can really cost you! You are literally never too young to consider taking out a life insurance policy. It’s not something that most people want to think about, but it is something that we all need to face. Let’s face it: the time will come at some point. But the earlier you start the process, the more it can help to fund the golden years when you are still here. These are some reasons that you should have a life insurance provider in North Charleston, regardless of your age!

Paying Off Debts You Might Not Be Thinking Of

Many Millennials assume that they don’t have to plan if something happens, not realizing that some of the debt that they carry, like student loans, might befall their loved ones if something should happen. A life insurance plan will also cover a small business loan or an unsecured loan if the balance doesn’t die with the borrower.

What Type of Policy is Right?

When it comes to young adults, most financial advisors say that a term policy is the best way to get the maximum coverage for the lowest price.

Term Life Insurance

A term life insurance policy is for a specific period of time, like twenty or thirty years. Once it expires, the policy is over unless the insured extends it or renews it for an additional term. They may also choose to convert it to another product like a whole life policy, but that often is much more expensive.

Whole Life Insurance

Whole life insurance differs because it offers the policyholder coverage for the remainder of their life as long as they continue to pay the set premiums. These policies also have the advantage of coming with a cash surrender amount that will accumulate tax-free.

The amount that you pay depends on which type of life insurance you choose. On the whole, it is usually less expensive than people believe. If you are going to take out a policy for a specified amount, the rule of thumb is to take your income and multiply it by either five or ten.

Why You Should Get Life insurance At Any Age

Another reason you want to consider getting life insurance when you are young is that policies only get more expensive as you get older and the longer you put them off. On average, insurance premiums usually rise by anywhere from eight to ten percent every year that you delay buying coverage.

There are several different policies and policy coverage amounts that you can choose. The best way to look at a life insurance policy is that it isn’t just about paying out after you are no longer here. If you start a policy that accumulates year after year, you can also save some substantial money and have a rainy day fund, if or when you really need money. Sure, you will have to forfeit the insurance payout, but you will have savings if you get into a jam and can always start another policy going forward.

At Abri Insurance, we understand that insurance seems like an unnecessary burden until you need it – and then it is very necessary and usually too late. When it comes to life insurance, it isn’t about planning for your death; it is about planning for everyone’s future, and for future generations. The earlier you get started, the better shape you will be in to take care of any dependents and debts that you may have down the line. Contact us today and let us be your life insurance provider in North Charleston!