Let’s face it – life insurance isn’t always our top priority on items to purchase this month. After bills, unexpected expenses, and savings, it can be hard to find the extra spending money to invest in a life insurance policy.
However, purchasing a life insurance policy sooner, rather than later, comes with several real benefits. Keep reading to find out what those benefits are.
1. It’s Cheaper the Sooner You Buy It
Life insurance is much more affordable and obtainable when a person is younger and healthier. As people grow older, life insurance policies tend to increase dramatically due to mathematical formulas set by insurance companies. Not delaying in purchasing a policy will save you a large amount of money in the long run.
2. You’re Providing Protection for your Family
If you’re married and have a family, or plan to get married and have a family, your spouse and children count on you for support. If something should happen to you, life insurance will help provide income for your family, which will help with loans, mortgages, and other expenses.
Even if you do not have a family now, you still need the protection. Consider all of your current financial obligations – student loans, car loans, credit card bills, etc. If someone has co-signed on those loans, they will be responsible for the outstanding debt if something happens to you.
3. Life Insurance is Important to Your Overall Financial Plan
There are many other types of life insurance policies out there besides term life insurance. Life insurance policies such as whole life, universal life, and variable life, offer more than just a death benefit, they offer tax-friendly, cash value accumulation. Of course, the sooner you begin with a “cash value” life insurance policy, the lower the premiums will be and the more time it will have to grow.
4. Supplements Employer-Provided Life Insurance Policy
Many of our clients express that they already have life insurance through their employer. While this is a great start, the reality is that employer-provided life insurance alone may not be adequate to cover your family’s financial needs.
Remember, there is never a better time than now to think about Life Insurance. We suggest that you speak with a life insurance advisor or financial planner and assess how much coverage is appropriate for your situation. Or, try this nifty Life Insurance Calculator to find out on your own.