Getting an affordable life insurance plan as a young adult may not be your topmost priority. After all, you are more likely to be healthy, single and not have a family that depends on you.
And then, with an entry-level job, you may naturally be on a tight budget. So why should you pay unnecessary premiums at this point in your life?
Remember, a life insurance investment in your twenties or early thirties can be an extremely wise financial decision. In fact, the younger you are, the better it is. Below, we have highlighted some reasons why you should go for an early affordable life insurance policy.
1. Excellent lock-in rates
When you purchase a life insurance plan, your premiums remain the same for the duration of your policy, unless you go for a change in your coverage amount.
Buying an early life insurance plan can help in substantially reducing your premiums and may even reduce the total amount you will spend on life insurance in your lifetime.
After all, you simply cannot beat the life insurance rates that you receive in your twenties and thirties.
With your age, your health also plays a major role in determining the amount you pay for life insurance. Being insured before the onset of any health problem, such as high sugar or blood pressure, allows you to lock in extremely affordable premiums for years to come.
2. Helps in building credit
If you opt for a permanent insurance policy, you also build a credit that you can bank on later. As the cash value of your policy increases, you can borrow against it. The younger your policy is, the more time you will have for your policy to increase in value.
3. Protection of your near and dear ones
You may have student loans, credit card debts, or financing for a new car – and perhaps you are even considering purchasing a house or an apartment. In the event of any mishap, life insurance can protect your parents or the co-signers of the loan from the burden of paying off your debts.
If you are in a relationship and have a mortgage, life insurance can prevent the surviving partner from having to cover the remaining amount himself/herself, or losing the whole house. Many young, tight-budget couples prefer opting for a term life insurance policy as coverage for a certain length of time – like the length of the mortgage.
4. Protecting the future
You are young and may not have anyone depending on you now, but that can easily change in the next few years. Investing now in an affordable life insurance plan means that you will have protection in place when your children, your spouse or your aging parents depend on your income.
If you wait longer, it can be more difficult and more expensive to get a coverage.
5. Take advantage of discounts
If you have other insurance policies, such as home or auto insurance, adding an affordable life insurance plan can increase the discount you get on these policies, saving you on other insurance costs .
Get in touch with us for the best and affordable life insurance plan in Toronto and Mississauga, Canada
Trust Life & Investments is all about providing affordable insurance options for our customers in Canada. We have over 30 years of experience providing expert insurance and investment advice for both businesses and individuals. Get in touch with our expert financial advisors to know more about affordable insurance plans.