Deciding to invest in life insurance can be a complicated process not only in a particular country, but in most countries as a whole. Among the many types available in the market, you must make an informed and intelligent comparison between health insurance and life insurance, these two being the most popular with the general public. Also, it becomes even more complex if you try to invest in this industry at a young age.
I know what you will say. As a free-spirited, independent, single 25-year-old like myself, what are the chances of dying from a debilitating illness or being hit by a bus on a two-way street? Securing my life at this ripe point in my life is most likely as bleak as Donald Trump’s chances of winning the 2016 US Presidential election! However, let me ask you this. If you don’t have a spouse, daughter, or son to stress over, I’m pretty sure you have loved ones in your nuclear family. Perhaps an elderly mother? To the father? A brother or a sister? – whose future you want to secure in the event of premature death or physical disability due to an unpleasant accident.
Thinking about the future of your loved ones when you’ve gone to the Great Divide is perhaps the most moving and selfless thing you can do for them – financially provide for your dependents if you pass away. On a side note, in the event of illness or hospitalization, you can obtain medical coverage from your insurance provider without stressing your parents or family members from the financial costs of hospitalization.
This is the most obvious and fundamental reason why you should get life insurance now. Counterintuitive as it may sound, your young age and optimal health are now the very factors that drive an affordable insurance premium on your part. Due to their young age, the risks of dying from illness are still low, therefore, you can get premium insurance coverage for a very low or inexpensive cost, and at the same time, guarantee the future of your beneficiaries. Your elderly parents who are used to a certain lifestyle, or your brother or sister who has not finished college or is still in high school, will no longer have to worry about their finances after your death. Simply put, your untimely death will not cripple your financial security because you have ensured that you continue to enjoy the best of life even after your death.
If you are the breadwinner of your family, fear not. Investing in life insurance is the first step in ensuring sufficient coverage for your expenses by adding riders to your basic policy, depending of course on your family’s needs.
What are my options?
Whole life insurance policies are generally more expensive and, in every sense of the word, long-term investments compared to purchasing term life insurance. Whole life policies offer protection on your estate taxes in the event that you default on payments, while term life insurance does not. However, the latter will save you relatively more money. Term policies can be a great option for those who want to be covered for a limited period of time.
Remember, the amount of premiums you pay will largely depend on the type of policy you buy from the insurance company. If you’re looking to save while protecting your health and your family’s future, variable life insurance might be the perfect option for you, allowing you to invest in stocks, bonds, and mutual funds.
Conclution
In short, investing in life insurance requires thorough research and understanding beforehand. Having a handful of mouths to feed in your family may be a signal to buy one now, as having financial dependents is at the core of this industry. You get an insurance policy and pay premiums because you want protection not just for yourself, but because there are people close to your heart.