Young adults have a wide range of new responsibilities to consider and purchasing life insurance is not always the first thing to come to mind. After all, young people that are not married, do not have children, and are healthy, may not understand the importance of purchasing life insurance ahead of these events. PHP Agency realizes that, given many of the circumstances of the past year, young people have begun purchasing life insurance younger. Here, PHP Agency reviews a few of the reasons why.
Locks-in Great Rates for Young Adults
One of the biggest reasons young adults have been purchasing life insurance is because, in doing so, they can lock in lower premiums and noticeably reduce the amount spent on life insurance over the course of their lifetime. In one’s 20s and 30s, a person is likely in the best shape of their life. Health is a large determining factor for how much a person needs to pay to secure life insurance. This means that getting insured before developing health conditions such as high blood pressure or high cholesterol can help a young person lock-in more affordable premiums. If someone is to wait until they age or develop health concerns, they may find that their premiums are much higher. In some instances, they may even find that their pre-existing conditions make securing insurance difficult.
Protects Loved Ones in the Event of Your Passing
When we are young and healthy, it is hard to imagine anything happening to us that could leave our loved ones struggling to get by. As a young adult, you may have credit card debt, student loans, or car financings that could become a burden to parents or co-signers in the event of your sudden passing. For young adults that are homeowners and in a relationship, purchasing life insurance can ensure that a surviving partner does not need to cover the remaining costs themselves in order to avoid losing the property. When PHP Agency reviews reasons that young people purchase life insurance, they find that it is often because of life changing events such as purchasing a house or having a child. One of the benefits of coverage options such as term life insurance is that they can be an affordable way to receive coverage for a specific length of time, which can include the length of a mortgage.
Contributes to Long-Term Financial Strategy
Many young adults are at the stage in their life where they are looking for ways to improve their financial stability. When PHP Agency reviews the ways in which young adults contribute to their long-term financial strategy, life insurance stands out as a crucial facet. This is because life insurance, if an individual opts for a permanent policy, can build credit that has a variety of benefits. Holders of permanent life insurance policies can borrow against it as the cash value of their policy grows. When purchasing life insurance young, the policy has more time to grow in value. Permanent life insurance policies can also develop guaranteed cash values that can be accessed at any time. As these values grow, they can serve as an additional tool for young adults that are facing financial obligations.