Why Life Insurance in Your 20s Is a Smart Move
There is a misconception that life insurance is only worth it when you are old and have a family to support. That is indeed when life insurance is most valuable, but there are still plenty of good reasons why a healthy 20-year-old should consider getting a life insurance policy. Here’s what you should keep in mind when it comes to getting life insurance as a young person.
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1 – Premiums are lower
First and foremost, it’s important to highlight how cheap life insurance can be when you are 20 years old. Premiums as low as $30 a month are not unheard of when you are that young, and you may be able to pay even less if you settle for a smaller payout.
2 – Funerals can cost quite a lot
Life insurance is about more than just making sure your family is provided for after you’re gone. It can also help ensure that your death won’t be a financial burden for your families. So, if your parents are financially stable but don’t have a lot of money saved up, life insurance can ensure that they and your other loved ones won’t have to worry about funeral costs. An early death is tragic enough, there is no need to also make money part of the problem.
3 – Living benefits are a real thing
Not many people know this, but you can benefit from your own life insurance. Many life insurance policies include “living benefits”, which are clauses that allow you to receive the value of your policy if you develop a critical health condition. These payouts are usually associated with conditions that lower your overall life expectancy. These include strokes, heart attacks, cancer, and various terminal life conditions.
If you are diagnosed with something terminal, you may even be awarded the full value of your insurance policy. Life insurance policies often payout their full if doctors determine you have one year or less to live. If you have more than a year, then you’ll be paid when there is only one year left.
This is money that can be spent on medical bills, seeking alternative treatments, or that you can just burn on parties and travel while you enjoy your last year. The money is yours to do as you wish.
4 – You can lock in lower premiums
If you know you want to have kids by the time you’re 30, then getting life insurance in your 20s makes a lot of sense. The premiums on ongoing insurance policies don’t go up as you go older. This means that if you buy a 30-year life insurance policy in your 20s, you’ll be paying the same low premiums until your 50s. The same goes for whole-life insurance, which will leave you covered for the rest of your life.
There are various other types of insurance that may interest you as well. You can learn more about insurance in general on this site: www.insurancehero.org.uk/business-protection/relevant-life-insurance-cover.
Author: Ranjeet Singh
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