8 Reasons to take out a Life Insurance Policy while you’re young

When you’re young, life insurance isn’t the first thing on your mind. You’re probably worried about paying rent, your kid’s doctor appointment, or any of the troves of bills that need to be paid. Life insurance is one of those things that we relegate to later in life. Sure what do I need life insurance for, you might be thinking, because I’m young and fairly healthy?

The truth is that you’re never too young to apply for life insurance. It’s a failsafe backup to have at all stages of your life. Here are our eight reasons why.

1. Your premium will be lower

Sure, you’ll pay into your life insurance plan for a while longer, but your premium will be lower. You’re young, you’re pretty healthy, and your wrinkles aren’t too terrifying just yet. Your age and health will work in your favour and drive down the cost of your life insurance plan.

2. Your life insurance policy protects yourself and your future

Maybe, at this moment in time, you don’t have any kids, or you’ve just started thinking about starting a family with your other half. Maybe kids are still a good fifteen years into the future, and you’re happy right now just looking after your cat. Either way, life insurance isn’t just for now. Your plan will help out your hypothetical family, your future partner, or the partner or parents you do have, if something were to happen. Not to get too heavy, but life insurance also covers funerals and any associated costs.

3. Life insurance can be helpful for getting a mortgage

Even if you’re not planning on taking out a mortgage right now, life insurance is still useful to have. One of the reasons is because you can use your policy to secure your first mortgage. So, if your cover is for the same or greater amount of cover and the same or greater term than your mortgage, you can use your life insurance to cover it. If your mortgage is on the higher end of the scale, you may be able to use your life insurance policy to chip a lump out of the balance.

4. It’s a back-up plan

If the worst were to happen, your mortgage and any loans you’re jointly responsible for will still need to be paid. This is one of the big plusses to a life insurance policy. If you’ve got someone who’s dependent on you, then your life insurance policy will be a serious financial relief for them.

5. Applying is way faster when you’re young

Most young adults and people in their 20s are gifted with good health. Applying for life insurance while fit and healthy will have a far faster turnaround than when you’re older. Because you’ll have no real medical requirements, there might not be a need for a medical or a doctor’s report—which moves things along!

6. If you’re self-employed, life insurance can come in handy

Not to get grim, but if you’re self-employed, you should consider taking out a policy to protect the business. Same goes for your business partner, if you’ve got one. You might be young and fit now, but no one is invincible!

7. Some policies let you save for your retirement

Some life insurance policy let you cash in your sum to use during your retirement. With some policies, you can use your life insurance money to pay off your mortgage, pay insurance or medical bills, and use it as income to splash out on whatever takes your fancy. Have a chat with us if this sounds like something you’d be interested in.

8. Having a small amount of cover is security for your family

We can’t all get through our 20s unscathed. You may still have to pay back student loans, debts, or travel loans from that awesome holiday you went on after college. Whatever debts you have, having life insurance cover is great for security. If the worst happens, your family will have a bit of extra security to pay off any loans.

Source: https://www.cornmarket.ie/blog/8-reasons-to-take-out-a-life-insurance-policy-while-youre-young