Regardless of your age or family situation, it is a good idea to have a life insurance policy. This allows your close family members to have some financial protection in the event of your passing. Even if you are a young, healthy adult, you could be in an accident that nobody saw coming. Now is the time to consider this type of insurance policy. Here are some benefits of buying a life insurance policy at a younger age.
It Costs Less If You Are Young and Healthy
First of all, if you can buy the life insurance policy at a young age when you don't have a major illness, you can save quite a bit of money. You want a life insurance policy with a fixed rate, so that the amount you pay when you purchase it never changes. Life insurance premiums start going up the older you get, and get increasingly higher if you have a serious illness. You can even be denied a life insurance policy if you have a serious disease that is fatal. Buying it now definitely benefits you in the long run.
Your Spouse Will Have Income if You Pass
If you are the only working adult in your household, you need to have life insurance. The money in your bank account will only last so long, leaving your spouse stranded and having to pay for everything on their own. Don't just consider their monthly living expenses, but your mortgage payments, debts, business expenses, and other things that are bound to come up. Whether you have children or not, it can be a major financial burden on top of the emotional distress your spouse is under due to your unexpected passing.
You Get Peace of Mind For Your Children
It is even more important to have life insurance if you have children. You can protect their futures and give them some financial stability by having a life insurance policy. The money from the policy is given to them if they are adults, or it will be monitored by a beneficiary who is going to oversee the finances of your children if they are minors when you pass. This can be your spouse or another family member that you trust to be responsible with their money.
It Can Help Pay For Funeral and Burial Expenses
One of the most expensive things your family will deal with after you pass is the funeral itself. Regardless of whether they choose a burial or cremation, the costs add up quickly. They might be paying for the cremation, urn, and the memorial service at minimum. At most, add in embalming of the body, the casket, cemetery plot, wake, visitation, and the funeral service. With life insurance, you can set aside a portion of it specifically for these final expenses.
Share29 March 2016
As the old saying goes, "you have to spend money to make money", and in this blog, I am going to help you see how and when that platitude applies. Hi, my name is Penny, and I love to write. My second favourite thing is to think and strategise about money and finance. In this blog, I am going to explain finance in ways that I hope are new and interesting to you. I studied accounting at uni but verged away from that to start my own consulting firm. I work from home, and I am bringing you this blog from my home office. Thank you for reading!