When you're in your twenties or thirties, you've hardly had time to adjust to your independence and the responsibilities that go along with it. Probably the last thing on your mind is life insurance, and it might even seem frivolous to you if you aren't married or if you don't have children.
The fact that at this stage of life, most of us expect to have a long life ahead is one of the undeniable assets of living in the twenty-first century, but that one fact alone isn't enough reason to put off buying life insurance. There are good reasons to seriously consider buying life insurance before you reach an age when you expect to have an increased need for it.
For the most part, the older you are when you start a policy, the more your monthly payments increase for the same amount of coverage. If you buy a policy when you're younger, the payments are much more affordable and remain at that same rate throughout the payment period.
There are two basic categories of life insurance available: whole life insurance and term life insurance. A whole life insurance policy remains in place for your entire life, and it's also a type of investment that accrues cash value. Term life insurance policies offer coverage for a certain number of years (the policy term), after which the coverage expires. There is no cash value. Your independent insurance agent can help you select the policy that best meets your needs.
If you intend to buy life insurance, remember:
Whole life insurance has more comprehensive benefits than term life insurance, and so costs more.
Rates rise substantially for the same amount of coverage on either type of insurance if you wait until you're older before you buy.
It makes sense to look into your options before you decide what the best age is for you to buy life insurance.
We’ll help you find the right coverage. Call Nexus Point Advisors LLC at 844-673-8439 for more information on Locust Valley life insurance.