When you’re young and healthy, getting life insurance seems downright absurd. Who needs it? Well, everyone does.
Life insurance is one of the most important — and least appreciated — financial products available to you. And it’s not as expensive or as complicated as many people think it is. But that doesn’t mean there aren’t tricks and traps when buying life insurance.
There are some great deals out there for young adults who don’t have dependents, but if you’re an older adult with a family to take care of, you might find it difficult to qualify for affordable coverage — especially if your health history is concerning.
However, armed with the right knowledge and advice from a trusted advisor, anyone can get affordable life insurance without sacrificing critical coverage.
Why You Should Buy Life Insurance
When you’re young, healthy, and don’t have dependents, it might seem like overkill to buy life insurance. After all, you don’t want to waste your money on something that you don’t need. But there are several reasons why you should buy life insurance even when you’re young and healthy, including: - Protection for your family.
No one is invincible, and life happens. If you die unexpectedly, your family would be left with nothing to live on — unless you have a life insurance policy. - Financial security. Life insurance is an important part of your overall financial security plan.
It provides your family with much-needed cash to pay off debts, cover ongoing expenses, and fund their future. - Debt repayment. If you have debt, life insurance can help pay it off. - Other financial goals. Life insurance also can be used to help fund your child’s education, start a business, or achieve other financial goals.
When Can You Get the Best Deal on Life Insurance?
The best time to buy life insurance is while you’re young, healthy, and have a low risk of developing any health issues.
That’s when you’ll qualify for the lowest possible premiums, which will make a big difference in the amount you have to pay. Young adults who don’t have dependents and don’t have a health history that’s concerning to insurers can qualify for the lowest rates.
But that’s not always the case. If you’re an older adult with a family to support and only a few health issues in your history, you could struggle to get the coverage you need and deserve.
Things to Know Before Buying Life Insurance
Before you start shopping for a life insurance policy, you should know a few things. First, you’ll need to decide if term or whole life is right for you.
Term life insurance is a more affordable option. It’s also less permanent and can be cancelled if you find yourself in a position where you no longer need the coverage. Whole life is worth the investment if you’re not sure you’ll be around long enough to need the coverage.
Whole life is more expensive and offers greater flexibility down the line, but it’s also a permanent policy you can’t cancel.
The most effective method to Avoid Paying Too Much for Life Insurance
The key to getting a great deal on life insurance is to shop around. You should also be aware of certain red flags that could drive up your rates, including: You have a family history of health issues.
You have a current health condition. You have a pre-existing health condition. You have a smoking or drinking habit.
In order to avoid paying too much for life insurance, you should shop around and compare rates from several different providers. You can start by getting a free life insurance quote online.
The Bottom Line
When you’re young and in good health, you can qualify for lower rates on life insurance. But if you have a family to support and a few health issues in your history, it can be difficult to get the coverage you need. When you shop around and are aware of the red flags that could drive up your rates, you can get the coverage you want at the price you’re willing to pay.
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