Most young people associate life insurance with seniors and older people. Is life insurance only for older people? No, it is not and there are many reasons you should consider life insurance before the age of 30 and even before that.
Your bank may not mention it to you in a financial review, but it is a good idea to find out what is on offer.
Can You Save Money On Life Insurance?
If you take out life insurance as soon as you start working and have some money coming in, you can save money in the long run. The longer you refrain from taking out life insurance the more expensive it will become. It is a good idea to take out both life insurance and sign up for some sort of pension saving plan when you start work. Taking out life insurance and starting to pay into a pension scheme are both good financial investments which you should try to make as early on in life as you possibly can.
Easier To Qualify When You Are Young
One of the reasons life insurance is cheaper when you are younger is rather self-evident. Life insurance companies are less likely to worry about the health of a 25-year-old compared to a 55-year-old. The company may still ask you questions, but they will probably not send you for a medical. This is one of the reasons why life insurance is a good investment and cheaper to take out when you are younger.
Should Women Take Out Life Insurance?
Most women who get married still rely on their husband’s life insurance. That is okay, but as many women are the main earners in the modern UK corporate working environment, women need to take out life insurance. Doing so before the age of 25 can save you a lot of money, and ensure if something happens to you, your family has a lump sum of cash to carry them over in case of your death. The money can be used to pay for a funeral or invested in a saving plan.
Dealing With Debt After Someone Dies
Should the worse happen, and you die with balances on credit cards or loan agreements, your remaining family will need to pay for them. Along with funeral expenses and stress of your loss, it could be hard to keep up with payments. The proceeds from a life insurance policy can be used to pay off debt and make sure your family does not have to worry about the financial commitments you made during your lifetime.
Are Employers Life Insurance and Income Protection Enough?
Many of us still rely on a life insurance policy provided by an employer. Is this sufficient? Not, it is not enough to cover debts, funeral expenses and mortgage payments. You need to consider what happens if you hand in your notice or your employment is terminated for one reason or another? You will likely be left without any life insurance.
The same thing applies to company-based pension schemes. Make sure that any company pensions schemes remain in effect after your demise or that you can transfer them if you leave the company. Your employer may make both sounds like fantastic perks, but it is important to have a realistic approach to what your employer is offering you.
Choose The Right Life Insurance for You
Before the age of 30, you will find you have more choices when it comes to life insurances. Many financial companies would like to have your money as an investment and often offer incentives for your younger new clients. After all, they will hold your investment for longer and make more money themselves.
You should never settle for the first life insurance you come across. Your bank may offer you a fantastic deal, but is it the right one for you? Don’t forget everything goes up in price, and you should make sure your policy is future-proof. That often means taking out a higher value policy. Doing so when you are young, is cheaper and represent better value for money.
The reasons why you should consider life insurance is today more relevant than ever before. Living in the UK is not cheap, and you need to consider how a partner, or your family, would manage without your income should they lose you. This is why investing in life insurance at an earlier age makes perfect sense.