IS LIFE INSURANCE IMPORTANT IN YOUR 20S?
We’re all going to live long, full lives, right? While life insurance coverage usually takes a backseat to our bigger life dreams when we’re young, as we begin to advance in age, affordable life insurance options seem to become more important in life planning.
There are several distinct advantages to attaining adequate coverage at a young age where older policy seekers simply cannot take advantage.
After all, building the right financial future depends on utilizing the right tools and resources. Most people understand the importance of building credit or budgeting. Life insurance is also something that younger individuals might want to consider adding to their toolbox.
Here’s why:
FACTORING AGE INTO LIFE INSURANCE POLICIES
While signing up younger is better, there isn’t a wrong time to purchase a life insurance policy.
While you may think that it’s harder to secure a life insurance plan later in life, there are options available. However, younger individuals tend to find cheaper premiums than those in advancing ages.
Buying long-term, permanent life insurance protection earlier in life almost always costs less. This advantage is due to various factors, but primarily because you will face fewer negative risk factors at a younger age.
Peace of mind is undoubtedly a reason many people purchase insurance at a younger age. Many more youthful individuals with small children decide to buy policies to make sure their children will be secure financially.
Affordable life insurance saves you money and can protect your loved ones when they need it most. Later on in life, most individuals will reach their financial peak. Conversely, younger individuals may have children and families, in addition to the incidental financial burden these life decisions bring.
Life insurance can help replace lost income when the insured passes away, such as establishing college funds for children, in addition to helping the remaining parent raise children while living comfortably.
CALCULATING YOUR NEEDS | AFFORDABLE LIFE INSURANCE
When thinking about life insurance plans, the question isn’t necessarily how much you need, but how much capital your family needs at your death.
The value depends on a couple of different variables:
- How much will your family need at death to meet immediate obligations?
- How much future income does the family need to sustain a household?
The first question accounts for all final expenses, including uncovered medical bills, settling funeral and estate costs, outstanding debts, mortgage balances, education costs, etc.
The second question is number is the present cash flow your family requires after you pass away.
We cannot pinpoint how much life insurance you should buy down to the penny. However, you can make the best possible effort by considering your current financial scenario. Outline what your loved ones might need in the coming years.
You will need enough life insurance to cover your financial obligation when you’re gone. It is never too soon to start analyzing existing financial needs and resources.
ALTERNATIVES TO LIFE INSURANCE
If you want to secure an affordable life insurance policy, life insurance plans indeed remain more affordable when obtained at a younger age.
Nonetheless, several alternatives exist to traditional life insurance policies when trying to cover debts with no dependents.
Companies provide insurance deductibles on outstanding balances amounting to a few dollars a month. These policies will pay out on these debts in full in the event of your death.
If you opt for this type of life insurance coverage from a lending institution, subtract this from calculations you make regarding your life insurance needs.
After all, double insurance in a particular area indeed represents an unnecessary cost.
LIFE INSURANCE COMPANY CORAL GABLES | GOLDENTRUST INSURANCE
If you need affordable life insurance, it remains essential to know how much and what kind of life insurance plan you need. Generally, renewable term life insurance is a sufficient package for most people, but you need to determine your unique situation.
When you choose to purchase life insurance through an agent, decide on your needs beforehand. This decision can help you avoid paying out for an expensive type or amount of coverage that you don’t need. Similar to investing, education is the key to making the proper decision.
Finding an insurance agent that fits your needs doesn’t need to be a challenging endeavor. GoldenTrust Insurance works hard to help individuals in Coral Gables and throughout the South Florida community find life insurance plans that suit their needs. Reach out for a life insurance quote to suit your needs today!
