Many people think that life insurance is only for seniors or it should be taken only when you get old. However, contrary to this belief, life insurance can be required at any time of your life. After all, you never know when you will die. It is not necessary that you will die only in your old age.
As negative as it sounds, it is nonetheless true. Life takes sudden and unexpected twists and turns. Therefore, no matter what your age is, it is crucial to fund your retirement or to have a strong emergency fund for your old age and not just leave life insurance for seniors.
5 reasons that life insurance for seniors is not the only important thing
Do you still need some other proof? Then, have a look at these 5 compelling reasons, which will tell you that life insurance is not just for seniors.
You are healthy and young
Life insurance only pays, when you die. However, the best time to purchase a life insurance is in your young age, as at that time you are healthy and young. Since life insurance is issued as per the rating scale, the healthier you are the better rating you will get. And, with a better rating, you will get a lower price for life insurance.
You want to increase the funding of your retirement period
There are a lot of retirement options, including 401(k), IRA, SEP-IRA, and ROTH. However, if you withdraw before time from any of your retirement accounts, you have to pay a hefty fee for it. Here, life insurance for young comes to your rescue, other than life insurance for seniors. Life insurance is of two types.
One is term life insurance, which expires and the other one is permanent life insurance, which produces cash value. And, if you opt for the latter one, which is permanent life insurance, and structure it properly, then you can literally benefit from the cash value throughout your life, fund your old life, and get tax-free advantages.
You start a business
If you are planning to start a business with a business partner, then you should definitely opt for life insurance. You share knowledge, expenses, and much more with your business partner.
So, in case your business partner meets some type of accident, you have to take care of their business interests as well as their family. Business owners commonly take life insurance on their business partner, which is known as a “buy-sell agreement.” In this agreement, things that a business partner gets, in case of some untoward incident, are written. And, life insurance is the best way of currency to finance a buy-sell agreement.
You get married
Although, being single have lots of benefits, the moment you say “I do,” you must think about getting a life insurance policy on your young years and not just life insurance for seniors. It is perhaps the best time for this. Suppose if one of the partner works and the other one stays at home or if one spouse earns much more as compared to the other one.
Therefore, life insurance can prove to be very useful in case the spouse, who earns much higher, goes through an accident or something else. In such a case, life insurance will cover all or some of your expenses.
Your baby is on its way
If getting married is not a good enough reason for you to get a life insurance policy, then surely a kid is. Children have lot of expenses, such as day care, clothes, food, education, college, etc. Thus, life insurance with tax-free benefits can ensure the well-being of your child as well as preserve his or her life.
Thus, besides life insurance for seniors, life insurance for young is also important.