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The Right Time To Purchase Life Insurancesiadmin May 22, 2019
Life insurance pays out a lump sum of money to loved ones when you die. With this money, your family can live the same quality of life, even if you can’t be here. Your husband or wife can continue living in the family home, while your children can go to college. Though it can be difficult to discuss the need for life insurance, it’s something that must be done. This coverage provides financial security, pays for funeral expenses and replaces income in the event of your death.
So, when is the right time to purchase life insurance? Life insurance policies are cheaper when people are young and healthy, so the right time to take out a policy is probably right now. Let’s learn more about why shopping for life insurance is best done in your 20s and 30s.
Benefits of Taking Out a Life Insurance Policy Early
- It’s less expensive. When a life insurance company considers an applicant, they focus on the risk of the applicant. The younger you are, the healthier you are, and this results in lower insurance premiums. When you take out a life insurance policy in your 20s or 30s, you can enjoy significantly lower premiums.
- It’s tax-free money. The life insurance death benefit is not taxable. This helps people build a comfortable nest egg that their beneficiaries can inherit. Also, there is no income tax on policy loans, and most cash value withdrawals are tax free as well.
- It’s an investment. If you choose a permanent policy, you are eligible for cash value life insurance. Your cash value will grow over time, and you can use this money later in life for retirement, to pay down bills and more. This value will be much higher if you start saving today!
- You have more options. When you are young and healthy, you have more options in terms of your life insurance policy, coverage, duration, beneficiary and more. If you are older and your health is poor, your options may be more limited.
Shop for Life Insurance with the Soden Agency
If you have dependents, own a home or business and/or have large debts, there is no reason not to have life insurance. If you do not have a life insurance policy, or you are looking for supplemental coverage aside from what you receive from work, contact the Soden Agency. With us, it’s easy to shop for life insurance and get the best possible coverage that will provide you and your family with the ultimate peace of mind.