Everyone would agree that it’s never too early to have life insurance coverage. Tragedies befall even the young and innocent; in fact, all too often. And certainly, many parents maintain generous life insurance coverage for their children. But what is the best age for a young adult to obtain her or his own policy for life insurance coverage? When does it make sense from a financial standpoint to do so? Let’s take a look and find out.
What is the best age to invest in a life insurance policy?
The first thing to know about this question is that life insurance IS an investment. Many young people erroneously think of life insurance simply as a policy that pays a benefit in the event of death. While that is true, there’s a lot more benefit to be gained from permanent life insurance policies. We teach our young adults that obtaining, and then consistently maintaining ample life insurance coverage is an integral element of their overall financial portfolios.
401K plans, Roth IRAs, money market accounts, annuities, bonds, stocks and life insurance are all important considerations for young professionals that aspire to develop specific financial goals. Many times, they do not understand the other benefits associated with permanent life insurance coverage; benefits that can make life more fluent and accommodating all along the way to financial independence.
Benefits of Permanent Life Insurance (as part of an overall financial strategy)
Owning a permanent life insurance policy has a lot more to offer than simply the payout of a death benefit. In fact, it can be used to ease the financial burdens of many of life’s notorious stressors, including:
• Paying for college tuition;
• Pay off student loans;
• Paying for that perfect wedding;
• Putting a down payment on a new home;
If you’re wondering how permanent life insurance policies can help you afford these types of major financial goals, you’re not alone. So many people just do not realize that permanent life insurance policies gain monetary value over time. And as you age, and your nest egg develops to fruition, your need for a death benefit should decrease. And it becomes your choice whether to access the cash value that your policy has accumulated over time. This value can be borrowed against; loaned to you.
When you take a loan out against the cash value of your permanent life insurance policy, the value of that policy decreases accordingly. Also, loaned money accrues interest. If and when you pay the borrowed monies back, your policy returns to its original coverage limits.
Getting life insurance when you’re young is an intelligent, proactive financial move. It not only offers that guaranteed death benefit in the event of your untimely demise; it also provides you with a powerful, accessible financial tool with which you can help your life to develop more efficiently. Even if you don’t think you’ll qualify medically, you can still get guaranteed life insurance to make sure you’re covered. If you have more questions, it’s always a good idea to talk directly with a professional life insurance agent. They are armed with all the knowledge you need to make the best financial plans.