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Why It's Time to Buy Life Insurance Today

Updated August 2, 2020 . AmFam Team

Life insurance is a crucial element of keeping your love ones and dreams protected. Let’s take a look at why you should get life insurance when you’re young.

Life insurance has been around for centuries, and there’s a reason why it’s just as important today as it was hundreds of years ago — it’s a way to financially protect loved ones in the event of a death.

Even when you’re young, single and have no dependents, life insurance can be beneficial at every stage of life. It’s also a crucial element of sound financial planning. Let’s take a look at why you should consider buying life insurance today.

How young can you get life insurance?

The younger you are when you buy life insurance, the more affordable it is. Insurance costs are also lower when you are younger and in good health. As a result, people in their 20s pay less for insurance than those over 45. Term insurance, whole life insurance, and flexible life insurance plans are all types of insurance young people can take advantage of in their 20s.

Why get life insurance young?

Your Health is a Factor

The cost of insurance premiums is lower when you are young and healthy. Your premium will be lower because your health is an important factor in determining the premium payable. You may even be exempt from medical exams if you are in good health.

Protection of Income

Life insurance is ideal to protect your income should you die unexpectedly. When you’re gone, so is your income, and the money your beneficiaries receive from your policy can help them make ends meet when your salary stops. In a nutshell, you can replace your lost income and protect your family financially with your insurance policy.

6 Reasons to Get Life Insurance

There are countless ways life insurance can help financially protect your loved ones after you pass away, here are six top reasons why life insurance is an absolute must for you and your family.

1. Income Replacement

If you or your partner were to pass away, you would lose that income, which is most likely part of your everyday budget. Having life insurance can help your family maintain their current standard of living without having to worry about that lost income.

2. Coverage for Debt and Financial Risk

A life insurance policy can help pay for debts that could be too heavy on one partner’s income alone. Having life insurance can help your loved ones pay for debts like student loans, a mortgage, credit card debt and any other financial debt you leave behind.

3. Cover Final Expenses

The cost of final expenses, like funeral costs, medical bills or even hospice fees can add up to tens of thousands of dollars. A life insurance policy can help relieve your family from the financial burden of these expenses. Learn more about how life insurance helps take care of final expenses.

4. Living Benefits of Life Insurance

Most people get life insurance to help financially protect their loved ones after they’ve passed away, but a permanent life insurance policy offers living benefits, too. For instance, your policy has a cash value component that you can use while you’re still alive. If enough cash value has accumulated, you can take a loan* on this money to put toward things like a down payment on a home, college tuition or to pay an unexpected medical bill. Read more to learn about the living benefits of life insurance, including cash value in life insurance.

5. Ability to Care for a Disabled Loved One

If you have a child or partner with a disability, or parents who need to be looked after, having life insurance can help give you peace of mind that they would be financially protected even if you were gone. Read more about life insurance to care for disabled loved ones.

6. Financial Protection for Your Children

If you or your partner were to pass away, that may mean there would only be one stream of income coming into the household — making it difficult to save for things like your kids’ first car or their college tuition. Having life insurance can help pay for expenses like these that help strengthen your children’s futures.

Life Insurance For Any Stage of Life

These are just some of the ways life insurance can benefit you and your loved ones. Check in with your American Family Insurance agent to see which type of life insurance coverage is right for you. You’ll find life insurance can help you gain peace of mind with the knowledge that what matters most will be protected even after you pass away.

*Disclaimer: Any loans taken from your life insurance policy will accrue interest. An outstanding loan balance (loan plus interest) will be deducted from the death benefit at the time of claim. If the loan balance grows too large for the cash value to support it, the policy could terminate.

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