Life insurance tends to be the last thing on your mind when you are in your 20s and 30s. The focus is on a career, taking care of family, and getting ahead in life. Dealing with a heavy debt load from student loans and other obligations can make it seem impossible to set enough money aside for an expenditure like life insurance. However, making a life insurance investment while are young can save you money in the long run. And it can make sure you cover any outstanding obligations if you pass away.
Why It’s Worth Investing In Life Insurance Now
One of the immediate benefits of purchasing a life insurance policy in your younger years is the premium savings. You get a better rate in your 20s or 30s than you would if you enrolled in your 50s and 60s. Getting a policy rate locked in at a young age can result in significant savings in your later years.
Protections For Student Loan Borrowers
Many people do not realize the importance of having life insurance to cover outstanding student loan debts upon their passing. While federal loans get discharged after a life-ending event, the same is not always true for private loans.
If something unexpected happens, anyone who may have co-signed for one of your student loans may be liable. Making low premium payments now protects friends and family from being on the hook for your outstanding school loans later.
Types of Life Insurance
Young adults typically get the choice of two different types of life insurance. Term life insurance lasts for a specific term, such as 20 or 30 years. Anyone you list as a beneficiary gets a specific payout if you end up passing away before the policy ends. Payouts can be as low as $5,000. Or they can extend into the millions, depending on your status.
Permanent life insurance lasts as long as you make premium payments. You also gain the ability to build up a cash value for your policy. The premiums for permanent life insurance never change, so you do not have to worry about rate fluctuations.
Put Yourself In A Good Position
Why not take advantage of the opportunity to save some money and keep your personal debts from overwhelming your loved ones? You can save now while having peace of mind, knowing you’ve done what you can to look after your affairs.
Get A Quote