Today I have another great guest post for you to enjoy!
Purchasing a life insurance policy is an important decision at any age. However, it is in our best interest to purchase a life insurance policy at a young age for a number of reasons. This article will discuss four of those reasons, in order to help your child understand more about the importance of purchasingand starting their own life insurance policy in their 20’s. They may be thinking that they are not ready for such a decision because they are single, without kids, no dependents, etc. While it is true that there might not necessarily need the policy right now, it will be something they will most likely need eventually. You can help them read further for more information regarding this important life decision, and start making plan to guiding them purchase their life insurance policy at their young age.
Lower price for policy
One reason it is best to teach your child the importance of purchasing and starting a life insurance policy in their 20’s is because it will be cheaper. The older they are in age, the more expensive their policy is. This is based on a number of factors, making it the best reason to teach your child the importance of starting their own life insurance at a young age. Saving money is always a plus, and they will thank themselves later. Help them understand that if they will wait until they are older to buy a life insurance policy, they will purchase at a much higher rate.
Larger policy could be afforded
When they are young, they will more than likely have more money now than when they begin to have a family and children to take care of, because they will have more expenses. Chances are they do not have very many expenses now, so they can afford a larger policy, and lock in a great rate before they begin to have more financial responsibility. This is a benefit because the larger the policy, the more coverage and options they have to insure that their family is taken care of after they are gone and later down the road.
Lower associated risks
Another great reason to teaching your child the importance of starting their own life insurance at a young age is because they more than likely have lower associated risks and health issues. In most cases, the younger they are, the healthier they are, making them less of a liability to life insurance companies, thus decreasing their rates and allowing for a better policy. It is common knowledge that life insurance companies are more reluctant to insure individuals with greater health risks, which is not an issue when they are young.
Save yourself from future stress
While your child may not have a family or dependents to worry about now, chances are they will in the very near future. By purchasing a life insurance policy at a young age, they can get it out of the way and focus on other things. They can move into the future and into other decisions in life such as marriage and children with the knowledge and comfort of knowing that they are insured and their family will be taken care of.
About the Author
Ashley Parker is a mother of three who understands the importance of life insurance brokerage. She suggests taking a look at a local brokerage general agency for more ways to secure the family’s financial future. Topics that she writes on include alternative energy, healthy living, home design, career advancement, finance, travel, SEO marketing and website content.