Life insurance is important when you become older or have family members who depend on your income. However, when you’re only in your 20s, you may think you don’t need to have one. But that couldn’t be further from the truth. There are plenty of benefits to obtaining life insurance in your younger years. Our agents at EasTex Insurance, serving Tyler, TX, could show you these benefits.
Premiums are Inexpensive
If you’re a young adult with no preexisting conditions and in good health, your life insurance monthly premiums are usually cheaper. It could be a wise financial decision for a young adult to purchase one. Getting life insurance early could help you cover some large debts, such as student loans, even if you’re not planning on starting a family.
Cash Value can be Used.
When you purchase a whole life insurance policy, accumulating cash value can be used while you are alive. This compounds over time as dividends are created. You can also borrow against this money. It makes more sense to obtain whole life insurance when doing this.
Easy Chance of Coverage Approval
Getting life insurance in your 20s allows you to get approved more easily than if you were older. You’ll unlikely have health problems or other contributing factors preventing you from getting approved. According to LIMRA, an insurance industry research center, the number of people under 25 who have purchased life insurance has increased significantly in 2020. No matter how young you are, having life insurance gives you peace of mind.
Life insurance in your 20s gives you cheaper monthly premiums, accumulating cash value that can be used while you’re still alive, and an easier chance of coverage approval. If you want to find the right policy, contact our EasTex Insurance agents today.