You’re young. You’re healthy. Why should you consider buying life insurance now? A longtime financial expert said the answer is simple: now is the best time to buy.
Let’s take a look at the top three questions to consider when adding this investment to your financial portfolio in your 20s or 30s as compared to later in life.
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Why now?
No one wants to think about getting older, but proactive planning is a key component of financial readiness.
“Your 20s or 30s ironically is a great time to buy life insurance – you’re often your ‘healthiest you,’” says Connie Markovich, executive vice president and chief operating officer of USBA — a not-for-profit association that provides a family of affordable insurance and financial products and services to military personnel, federal employees, National Guard and reserve members, veterans and their families.
She adds that being in this age demographic helps you qualify for life insurance.
“It makes the whole application process easier typically – and can help you snag the best rates out there, even preferred rates on select plans,” Markovich said. “If you buy whole life insurance, the premium is locked in for your whole life; the younger you are, the less you pay, age for age on that policy. It builds some cash value too over time, so a piece of your premiums is paid back later if you cash it in.”
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But what are the benefits?
The tangible benefits of life insurance can be felt when the unexpected happens, but Markovich says there’s value in the intangible of life insurance too.
“What is often expressed is a sense of reassurance, comfort that having life insurance provides,” she said. “Knowing that if something happens, now or years from now, the financial part of dealing with the loss of a loved one (or of yourself) is lessened or eliminated. Even a young single person can have financial obligations or wish to help those who helped them — with college loans, buying a house, a car, children — any number of expenses we accumulate over the years.”
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Is this right for me?
A common misconception is that life insurance is for older generations, which is simply untrue.
“It’s not just something your grandparents need. It’s for you. Now,” she said.
By purchasing life insurance at a younger age, veterans and military spouses can benefit from it being less expensive and easier to apply for because your health is typically better. Plus, there is peace of mind in being better prepared for the unexpected.
“At younger ages, it may never be cheaper. Buy it while you qualify, put it away and forget about it,” Markovich added.
For more stories like this, including how to save, build retirement, navigate insurance and more, download our 2020 Military Money Guide.
