Read time: 6 mins
By: Diego Maldonado
Expert reviewed by: Rita Ross
Don’t wait! It might seem odd to assemble every individual in the United States of America that does not have life insurance in a massive imaginary arena for an in-depth speech on life insurance and just say the first two words in this article – don’t wait. But I believe these two words say it all, and I believe the message would be clear. When it comes to buying life insurance, doing so at a young age has the most benefits. In fact, the younger the better.
NOT AS EXPENSIVE AS YOU THINK
When most of us think of financial products the first thing we think of is securities, which are certificates, in some form, that have monetary value and can be traded. When you hear people talk about stocks and bonds, they are really referring to securities. Stocks are equity securities, and bonds and debentures are debt securities. But did you know that your insurance agent can assist you with another great financial product that is often avoided because most assume it is much more expensive than it really is? That financial product is life insurance.
EXPERIENCED INSURANCE AGENTS UNDERSTAND LIFE INSURANCE
Just like securities, commodities, derivatives, and currencies, life insurance is also a financial product. Fortunately, if you have an experienced insurance agent, the learning curve for life insurance is much less than with the aforementioned financial products. We typically understand life insurance by its actualized definition because the media uses terms like “death benefit” and “lump sum cash payment.” You may have also heard of types of life insurance policies such as permanent and term-life insurance. Ross Insurance can help you understand the advantages and disadvantages of these products, but our staff is committed to educating customers about the surprising affordability of life insurance – especially when policies are secured at a young age.
WHY PURCHASING YOUNGER IS BETTER
You may have heard the saying, “cash is king.” But in insurance, premiums are king, and understanding the life insurance premium algorithm can save you a lot of money and reduce the risk of you defaulting or missing a premium payment. The algorithm is understandably confusing and not the scope of this article, but what you should know is that premiums get friendlier (cheaper!) as the age of the insured decreases. As life would have it, time tends to smile on the young and frown upon the aging. Disqualifying, or premium-inflating medical conditions tend to manifest when we are older. This means, although you may find coverage at an advanced age, you will almost certainly pay more for that coverage.
DO NOT WAIT!
Ross Insurance advises you to get life insurance when you are young and presumably at your healthiest. And since life insurance is usually purchased to benefit the family of the primary income earner, we suggest researching and comparing coverage options and preferred carriers at the onset of the family planning process. We understand that young adults are burdened with things like rent, mortgages, automobile notes, and perhaps the ugliest of all, student loan debt. Notwithstanding, it is prudent to budget for life insurance as well.
Ross Insurance can empathetically guide you through when and what type of life insurance is best suited for you and your loved ones. Moreover, we can help you internalize the significance of life insurance at certain milestones in your life. And in closing, life insurance is not just for mom and dad. Did you know that you can buy permanent life insurance for an infant at an insanely low premium that can be transferred to that child when they turn eighteen years of age? We don’t expect you to know all of this, but we do hope you call a licensed insurance agent and ultimately invest in life insurance when you’ve worked out how it can fit into your budget.
