OREANDA-NEWS. December 03, 2015. Life insurance is one of those things a lot of people don’t really want to think about it until they’re “older.” I understand; people don’t want to think about dying, and most young people assume they’ll have time to deal with it later.

But that doesn’t mean they shouldn’t start thinking about life insurance now.

Life insurance is an important part of your overall financial plan. The sooner you get started putting your plans into action, the greater benefits you’ll reap.

Here are 4 reasons why buying life insurance at a young age is a smart move.

1) Lock in cheaper premiums

The younger you are, the cheaper your premiums will be (other things being equal). Life insurance companies figure that you’ll probably live for a long, long time – and keep sending them money along the way – and they set your rates accordingly.

As your age climbs, so do your premiums for a new policy. In addition, the older you get, the more your rates increase over the previous year. For example:

A 25-year old non-smoking man in excellent health may be able to get a 30-year, \\$500,000 term life insurance policy for \\$32.35/month. What would happen if he waited to get covered? Assuming his health never declines, here’s what his monthly payments would look like

25 yr. old  --  \\$32.35
35 yr. old  --  \\$39.14
45 yr. old  --  \\$85.55
55 yr. old  --  \\$258.87

The difference between the 25-year old and the 35 year old is almost \\$7/month. But the difference between the 35-year old and the 45-year old is over \\$46/month.

Waiting 10 more years adds over \\$173 to the monthly premium!

2) Get coverage before you become uninsurable due to injury or illness

Your health is a major factor that determines how much you pay for life insurance. Poor health makes you more likely to die early, so insurance companies charge more to compensate for that risk.

Accidents happen. Sickness can sneak up on you. And when these things take their toll on your body, your rates can go way up. If your health takes a serious hit, you may be deemed “uninsurable” when you finally do apply for coverage. At that point, your life insurance options are limited and will be costly.

Buying life insurance before injury or illness prevents this from happening. Once your policy is in force, and you continue to pay the premiums, it cannot be canceled and your premiums can’t be raised by the insurance company for health reasons.

(This is one of the biggest reasons to buy whole life insurance for children!)

3) Protect your loved ones from your premature death

We hope to live a long full life…and we hope to have our financial house in order when we die.  But what if you pass away before your time?

We buy life insurance to protect our family’s financial future when we die. But the truth is, we don’t know when we’re going to die. Doesn’t it make sense to buy life insurance sooner rather than later…to make sure we’re prepared for the unexpected?

Even if you’re  young, you should keep a few things in mind:

·       If your parents co-signed any of your debt (like student loans, car loans, etc.), they may be responsible for those debts if you die before paying them off

·       If you’re the one taking care of your aging parents, what will they do if you die? Life insurance can provide for them when you’re not able to

·       Have you put off buying life insurance because you’re single with no kids? If want to get married and have children in the future, you may be glad you already own life insurance

Buying life insurance in your 20s or 30s doesn’t sound crazy anymore, does it?

4) Accumulate cash value

A permanent life insurance policy can be rock-solid component to your long-term financial strategy. These policies develop guaranteed cash values that you can access at any time, for any reason. Yes, this is a life insurance benefit you can enjoy while you’re alive.

The cash values grow each year, and over time, can help you pay off those student loans, make a down payment on your new car or house or finance a fancy wedding.