Young Americans need life insurance just as much as any other age group. Even if younger people have a lessened risk of dying suddenly, they can still start building a secure future by investing early in a policy.
September is National Life Insurance Awareness Month. So, take some time to learn the benefits of life insurance.
How Life Insurance Might Help Individuals
When someone dies, they may leave behind debts, or dependents who relied on their support. A life insurance policy may help protect the financial security of those left behind.
- Outstanding debt often falls on survivors. Survivors may have to settle mortgages, student loans or even credit card debt or bank statements. Life insurance can help survivors settle these debts.
- Should someone leave behind a spouse, children or other dependents, those survivors may lose a valuable source of income. Life insurance may help supplement this lost income. The family may have a chance to maintain their lifestyle or adjust their finances to cope with the income loss.
- A life insurance policy may help settle outstanding medical bills or funeral costs. However, policyholders and survivors should remain wary. Many policies may require a waiting period before they issue a payment. This means that the policy may not provide ready funds for funeral needs.
- Children or other dependents may benefit from a parent or caregiver's insurance. If you die before your children reach majority age, they might be able to use your life insurance to pay for school. You might also leave life insurance to guardians who care for disabled dependents.
Life insurance comes with a variety of other benefits that may augment the policy's value. For example, some policies can accrue interest. If you enroll while you are young, you might be able to watch your policy value grow over your policy term. Other policyholders may not have to pay taxes on their life insurance money. This can help you receive the assurance that you will have financial security as you age.
The earlier someone enrolls in life insurance, the better chance they have of paying a lower rate. Younger people are often healthier, and have less of a chance of filing a policy claim in the near future. This may mean insurers reduce your risk level and prospective policy prices.
So don't wait. Now that you know more about life insurance, take the time to enroll in a policy. There's no better time than Life Insurance Awareness Month.
Let TCU Insurance Agency help you get an affordable policy. Call us at (800) 772-8043 for a free life insurance quote.