Insurance can seem like a complicated subject to many people. There are numerous types of policies that cover a wide range of services. Most adults are pretty well educated on the need for health insurance and auto insurance and know what kind of coverage they need for themselves or their family. These policies are also often required, and according to Tennessee’s Financial Responsibility Law you are “required to be financially responsible in the event of an automobile accident.” But what about other types of insurance? One type that is often overlooked is life insurance. Oftentimes, people view life insurance as something they’ll look into “when I’m older,” but that can be a very costly decision. Keep reading to see why you should invest in a life insurance policy right away.
Financial Security for Your Loved Ones
This is the primary (and most obvious) benefit of having a life insurance policy. Nobody can plan for an unexpected tragedy, but being prepared financially can give you and your loved ones some peace of mind. Funerals, lost income, debts, and estate taxes are all financial burdens that can fall on your family after you pass, so making sure you’re leaving them with the ability to handle all of this is an important financial strategy. If you don’t have those things to worry about, a life insurance policy can also serve as an inheritance for a loved one.
Lower Premiums When You’re Younger
A life insurance policy can be mistakenly viewed as something that you need once you’re older, married, or have kids. This misconception leads many people to wait longer than they should before investigating their options. Life insurance policies — and the amount you pay each month — are largely determined by your health at the time you apply for your policy. According to Investopedia, “..it is always cheaper, and sometimes substantially less expensive, for a younger person to buy insurance than an older person. This means the potential benefits of insurance can be just as large and cost much less or maybe much larger and cost about the same.” Investing in a life insurance policy at a younger age can save you in the long run.
Locked In Rates for Life
Similar to our previous point, investing in life insurance when you’re young allows you to lock in a great rate for the duration of your policy. When you’re in your 20s and 30s, the risk of high blood pressure and cholesterol, as well as any other health conditions, is much lower, which will allow you to qualify for low rates that you can count on for the rest of your life.
If you’re curious about life insurance, or are ready to get started on your policy, our expert team at Collins Insurance Agency will walk you through the options and help you to determine if term life insurance, whole life insurance, or universal life insurance is right for you.
