At the risk of sounding like your parent, investing in a life insurance policy while you’re in your early twenties isn’t only about protecting loved ones in the event of your death, but is a sound financial decision that can have long-term benefits. We think that life insurance should play a role in your overall financial portfolio – just like a 401K, stocks and bonds would. Give us a few minutes of your time to explain why.
Lower Premiums When You Are Young
While you are young and healthy, the cost of life insurance (the PREMIUM) will be less expensive than if you wait to purchase until you are older. We have young clients who pay $12/month whereas that premium might be $50/month for our clients in their mid-thirties to forties. Plus, once you are locked into a rate, that will never change as long as you have an active policy.
Change of Circumstances
While your job may offer life insurance now, there is no guarantee that future employers will offer those same benefits and you could be out of luck. Take charge of your own financial future; don’t rely on someone else to protect what’s important to you.
It might not just be your job that changes… it could be your health. The scary thought is that some clients, due to illness, may not even qualify for insurance at all. Don’t wait! Think of it this way… if you bring your lunch to work 2 or 3 times a month, your insurance will pay for itself
Forced Savings: Living Benefits of Life Insurance
If thinking about your own immortality is the reason for your hesitancy, think of a life-insurance plan as a forced savings account. You can actually withdraw against your life insurance policy to help pay for life’s big events (wedding, education, first home). Once the need for death benefit protection has decreased, you can access the cash value in a whole life policy via policy loans, but we advise understanding the fine print before doing so.
Protect Your Loves Ones
While some refuse to look at what could happen, you might just be the opposite. You might be looking at life insurance as a way to protect your loved ones. Great thinking! Perhaps your parents co-signed on your student loans and would be responsible for their repayment if you died prematurely. Or maybe you are thinking of the financial security of your future children. Whatever the reason, life insurance can give you peace of mind that your loved ones (now and future) will be taken care of. What’s that worth?
Whatever your situation, a life insurance policy is a great financial decision. Talk with our team to discuss what that could mean for you. Call us at 248-817-8071 … no commitment required to call, just an informational chat!