Life insurance is considered a fundamental part of sound financial planning. If you’re a parent, spouse, homeowner or business owner (or some combination of those four) then you likely need the protection that life insurance provides.
But just because the decision to get a policy is often obvious, the job of securing the right type in the right amount can be less clear. There are many misconceptions that can make getting a policy confusing.
A life insurance expert can help guide you through this process and answer any questions you may have. They can even help you get started with a free price quote right now.
3 things about life insurance you didn’t know
In order to get the best life insurance coverage for your needs it helps to keep these facts in mind.
Young people should have it
There’s a popular misunderstanding that young people don’t need life insurance. But many young adults actually should – and they should act now while they’re healthy and rates are low.
While life insurance is beneficial for policyholders of all ages, there are some particular benefits younger adults should take advantage of. The main one is cost. As you become older health issues arise and you’ll become riskier to insure. But if young adults get life insurance now they can secure a lower rate (before any nagging health issues arise).
Life insurance policies could also help pay off debt like student loans should the insured die before the debt is paid off.
So, speak with a life insurance expert now who can help you build a personalized policy.
It can be used to pay off debt
Life insurance can feel like a bill you’ll always have to pay with none of the rewards. But certain types actually have a cash-out option that you can access while alive. Accordingly, you can use that money to pay off debt, household repairs or college education costs. The possibilities are numerous.
Two things to note here, however: Not all policies offer a cash option (only whole life insurance policies provide this benefit). You’ll also need to build up the cash value over time. So, if you just opened your whole life plan you probably won’t be able to use much, (if any) of the cash.
Over time, however, you’ll build up enough cash in the plan to use as you please.
You can get $1 million or more in coverage
If you’re young, healthy (and willing to take a medical exam to prove it) you can secure a significant amount of life insurance coverage. This can range from hundreds of thousands of dollars to $1 million or more.
Depending on your personal financial situation and goals, a $1 million policy may make sense. You will need to be eligible but many people surprisingly are – and they don’t have to break the bank to get a policy. Rates and fees vary but it’s not inconceivable that healthy adults could get $1 million or more in coverage for just a double-digit sum each month.
Insurance companies are more likely to approve you for a $1 million policy when you’re young and unlikely to have your beneficiaries cash it in, however, so it again pays to start early.
Apply now and see what you can qualify for or use the table below to compare your options.
The bottom line
The benefits of life insurance are multiple and significant so don’t get discouraged by rumors and misconceptions. As mentioned above, if you’re young and healthy you can likely get a robust protection plan for a reasonable cost.
Speak with a life insurance pro now who can help you get started.
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