Good Reasons To Buy Insurance Policy At An Early Age – Soon after you get a Job

Posted: October 15, 2014 in Uncategorized

Deciding whether you need life insurance can be a complicated process. The decision can be even harder when you are younger. When you are young you generally are in good health and the cost of insurance is very cheap. You will still need to justify the amount of coverage and the insurable interest between the insured and the beneficiaries of the life insurance policy.

Let us find out why it is necessary to go for insurance policy at a young age:

1. Lesser the age lower the premium

The premium that you pay on your insurance policy is mainly dependent upon two things those are your age and the tenure of the policy. The younger you are the lower is your insurance premium amount.

At an younger age, you would be physically sound and may not be suffering from illnesses. This would entitle you to a lower premium on the policy. Therefore it is advisable to buy insurance at an early age to reduce the cost of insurance.

2. Help in problems regarding health

Usually a person gets a life insurance policy in the middle of their life spans mostly when they are in their forties or fifties. At that time, they may have already fallen into the grip of bad habits like smoking, obesity, heavy drinking and diabetes, heart disease, cancer or HIV may have entered their health picture.

All these conditions can hike the premiums or make it harder to get a policy. An early insurance in life, before you have to encounter any of these problems, should allow you to pay less expensive premiums.

3. Insurance Will Be a Good Investment

Many young professionals are looking for investment options for their savings. For these individuals, a variable life insurance policy can provide a good addition to their investment portfolio, as it allows investments in stocks, bonds and mutual funds.

These investments can allow your cash value to increase more quickly, though there are some investment risks. When choosing a policy with an investment feature, you can limit your risks by choosing one with a guaranteed minimum death benefit.

4. You Can Accumulate Cash

With insurance, you also have the possibility of allocating a portion of your premiums to a cash accumulation vehicle, an option usually available under universal life insurance policies. This accumulated amount can serve as a cash reserve, and can be used to pay insurance premiums if your disposable income is no longer sufficient to pay those premiums.

However, you will need to ensure that the available cash is sufficient to prevent the policy being lapsed due to unavailability of cash.

5. Valuable reassurance

Life insurance can provide a valuable sense of reassurance to policyholders at any age. If you are wondering whether you’re too young to start a policy, consider the benefits and costs of several policies.

You may find that you can obtain affordable life insurance cover that gives you greater peace of mind whilst offering a more stable financial future.


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