When it comes to buying whole life insurance, most people get stuck at what age they should buy it. The answer to this question varies because it depends upon multiple factors such as family and financial situation.
Life insurance is commonly purchased when you are the bread earner of the family and people depend on you and your income, or if you are under debt that will have to be paid after you pass away. Nobody wants to leave their loved ones burdened with debt and money to live at the end of the day.
What’s the ideal age?
Generally, the younger you are, the more benefits you have offered by life insurances. Not purchasing life insurance at a young age means you are missing out on many economic benefits. The sooner you pay your whole life insurance cash value and get your life insurance, the better it is for you. Here are a few pros and cons of buying life insurance at an early stage. Be the judge yourself.
1. Cheaper premiums
You can get cheaper premiums at a young age because, at a young age, people are generally healthy. As you grow older, the chances of you having a health issue is high, and thus will get your life insurance at high premiums or no premiums at all.
For example, purchasing life insurance at a young age can get you a good $490000 coverage costing you $27.50 per month. On the other hand, if you are in your forties, your premium will cost you $52.18 per month.
2. Easier to purchase good coverage
To get life insurance, you are required to submit a paramedical health exam. You are also asked to provide information regarding your health status, family history, and past health issues. You are generally healthy and unlikely to be suffering from a major health issue at a young age, so insurance companies approve your application easily.
3. It can help you pass down wealth to your loved ones.
Generally, people are unable to build significant assets in their early adulthood days. Getting life insurance can change that and help you build significant assets to pass down to your loved ones. This way, you can provide for your family even when you’re gone.
1. Extra expense
When you are young, it can be difficult to handle premiums. If you don’t have enough money at the moment, you should look into if you can afford coverage or not.
2. Returns may be better somewhere else
The younger you are, the greater time you have to grow your money. This is due to the build-up of interest in your investments. You can earn more if you have greater interest earnings. Instead of going for a permanent life insurance policy when you are in your early 20s, you can purchase a term policy and invest the extra amount in permanent coverage.
In a nutshell
Purchasing whole life insurance at an early stage, such as your early 20s and 30s, is a great idea as it has many advantages. It offers economic support and benefits in the long run as well as immediately.