Life Insurance for Young Professionals: Why Start Early?

As a young professional, you have so many things ahead of you, including personal growth, new opportunities, and plans. You may be at the peak of your career and health, and the last thing you can think about is availing yourself of life insurance. Of course, you might think having health insurance is enough to cover your needs, but having life insurance also has a lot of benefits.

At the same time, it’s common to think that instead of availing life insurance, there are other things you can invest in, like your travelling expenses, business, and other material things. Meanwhile, having life insurance doesn’t mean you’re anticipating the saddest moment of your life, instead, think of it as an addition to your plans.

In this article, we’ll discuss why young professionals should avail themselves of life insurance.

1. Score Lower Premiums

One of the basis of life insurance premiums is health and age. If you start availing of life insurance at a young age, insurance providers can easily offer you lower premiums. So, if you have an insurance adviser, you can consult with them about your options as someone interested in getting life insurance.

Starting early means that your premiums can start at the lowest rates, and they may not significantly increase over time. This is because the insurance provider is aware of your lifestyle and current health conditions.

For instance, if you’re currently healthy, don’t have any vices, and have a great lifestyle, it means you pose less risk. On the other hand, getting life insurance at a later age comes with higher risks and costly premiums.

2. Financial Protection for Your Loved Ones

Whether you already have your own family or not, having life insurance is still a great financial protection for your loved ones. For instance, if you have credit card debt, loans, and car payments to accomplish every month, your family is required to take care of it in case they lose you.

Fortunately, by availing of life insurance, and something happens to you, your family won’t be left with financial burdens. Instead, aside from being able to pay for your debts in case of unexpected incidents, they can have additional savings from the money you left for them.

3. Build a Foundation for Long-Term Financial Planning

Life insurance isn’t just about the death benefits your beneficiaries will get. It’s also a financial safety net that you can borrow or withdraw in case of emergencies. For instance, if you already completed your payment, the cash value will accumulate over time, and your money can still grow.

So, in case you need more money to buy a property or fund yourself into a nursing home when you grow old, you can deduct a portion from your life insurance policy, and use it.

However, to make this possible, you should hire an insurance adviser who can help you find a life insurance policy that allows such things.

4. Prepare for the Unexpected

Life can be unexpected. Although no one wants to think of their death, or even prepare for it, you shouldn’t put off getting life insurance. No matter how old you are, life insurance can offer peace of mind and security. In addition, it’s best to get life insurance when you’re in the prime of your health so that you can score lower premiums. On the other hand, if you already have pre-existing conditions, it can be hard to get approved or you’ll have to pay a lot just to get one.

So, if you’re planning to get life insurance in the future, it’s best to get it now while you’re young, and have fewer things to invest in.

5. Supplement Your Employer Coverage

Young professionals usually have health insurance provided by their employers. However, usually, the coverage in this type of insurance isn’t enough. While it’s still beneficial, it’s not the same as when you avail of your insurance policy. At the same time, availing yourself of insurance can be a long-term protection.

But if you’re looking for a way to lessen the cost of your life insurance, you can ask your employer to have supplementary life insurance on top of the health insurance they provide. Usually, this kind of deal is done through salary deduction, which is great since you won’t be able to forget to pay.

6. Invest in Your Future at a Young Age

As mentioned, getting life insurance at a young age is beneficial since you don’t have to spend a lot on extremely high premiums, and you can start paying for the most affordable ones. Additionally, as a healthy person, you won’t have any problems in terms of getting denied. On the other hand, if you already have pre-existing conditions, aside from the possibility of being denied, you can also have life insurance at a higher rate.

Final Thoughts

Don’t be scared to get life insurance, especially as a young professional. It doesn’t mean you’re giving up on life, and just waiting for the day you die. Instead, it’s one of the ways you can do to prepare for the future. At the same time, it’s a good investment. So, if you’re thinking of getting one, now’s the right time.