Life insurance is a worthwhile financial investment. Yet, most Americans think about getting life insurance in their later years.
The most obvious reason to buy life insurance is to get financial security and protection in the event of unexpected events that could lead to losses. Let’s make something clear; everyone needs life insurance to protect themselves, regardless of their age, gender and occupation.
However, not many people know that they sooner they purchase life insurance, the better. If you’re in your 20s, it’s the best time to get insurance.
Does age affect insurance premium?
Different factors, such as gender, lifestyle, health, and more, help life insurance companies determine insurance premium. Among all these factors, a policy holder’s age is the most significant determining factor for companies.
Younger policyholders are considered less risky than older policyholders. Since they are more likely to live longer than older applicants, they are less likely to file an insurance claim in the future.
Another crucial factor is the health of a policyholder. It determines how much they will pay for insurance. Generally speaking, people are more likely to develop severe health conditions later in life. Poor health increases an individual’s risk level, which is why they will have to pay more for insurance. When you’re a healthy 20-something-year-old, you are less likely to submit an insurance claim.
Reasons to get life insurance in your 20s
If you’re in your 20s, here is why you should purchase a life insurance policy:
- Owing to your young age and good health, you can get affordable premiums. As age rises, companies tend to charge higher premiums on account of increasing risk.
- You can get coverage before something bad happens. You never know when you may encounter an accident or illness. Before your general health worsens and you’re deemed ‘uninsurable’, you should getlife insurance. Keep in mind, your insurance options will be limited by that time. Once you’ve signed up for life insurance and if you keep paying your premiums, you can obtain coverage for health reasons. More importantly, your insurance company cannot raise your premiums later on.
- If you die prematurely, life insurance will financially protect your family. It will cover mortgage payments, childcare and education expenses for children and cosigned debts (student loan) that your family cannot pay off.
Looking for life insurance? Gregg Marcus can help you find the best life insurance policy that will suit your needs.