I remember when I was getting prepared to head to college, almost two decades ago now, you feel invincible, you have your whole life in front of you, and for most of us it is our first time of truly feeling independence from your family. You are out there on your own, presumably living in a college dorm, classes during the day, extracurricular activities at night, some your parents probably don’t want to know about. Life is great, so why would you even think about paying for Life Insurance? I mean you are going to live forever right?
While so far in your life there has been signs that you, but so far no one has gotten out of this place alive, so solid bet is one day, you too are going to die. But why worry about that now? You can always get Life Insurance later in life, right? You can, unless, you come down with some awful disease like cancer, have a heart attack, AIDs, and so on. How much more is that going to cost you then unless you get Life Insurance today? Also god-forbid what if something happen to you while in school, who would pay off your loans? Is leaving a financial burden for your parents whom have been at service to you, your entire life really what you want do, when for a small premium you can prevent that?
The average cost of a resident state public college for 2018 is over $25,000 a year not including books, dormitory, or meals. So modestly thinking $200,000 in Student Loans would covered a four-year degree is a stretch. The price of a 20 Term Life Insurance policy covering $200,000 for a 18 year female living in Ohio that is a non-smoker with a preferred rating would be under $18 a month from Mutual of Omaha. That same student 10 years down the road would pay for the exact same coverage would be over $30 a month that is almost double the cost.
Benefits of Getting Coverage Now
The thing about insurance policies is, every year you wait the price of the premiums go up! So without hesitation I can say “there is no better time than the present to purchase a Life Insurance Policy.” That however is not the only benefit of getting covered today.
A nice benefit of purchasing a life insurance policy now, is your Health Class rating, will stay the same if you choose to down the road convert your Term Policy to a Universal Policy if you qualify for a preferred rating (or higher) you would get to keep that rating the only thing that would change is your rated age. When you convert your policy your current age is used, and not the age when you purchased the term policy.
If you elect to start with a Universal or Whole Life policy, you can start building cash value in your policy. This can come in handy later in life and the nice thing is the interest rate you are charge is probably going to be better than any lending institution as the money you are borrowing is your own, so it is a secured loan. When you are ready to purchase a home and you don’t have the money in your bank account for the down payment, you can use your cash value.
When shopping for a policy, there are many things to consider, not all agents and insurance carriers are equal. I suggest working with a brokerage firm like Forever Young Financial and Insurance over a captive agent. A captive agent can usually only sell one carrier’s products, not that their product isn’t good, but it can limit what is available and all your needs may not be met. Another thing to keep in mind is the Insurance Company’s Rating, not all carriers are rated the same. Some lower rating carriers may have better rates, but you can run into the risk of them not paying out, going out of business and so forth. When you are collecting your Life Insurance benefits it usually means it is not for a good day.
Feel free to contact one of our agents, and learn about the different products we offer, as well as learn as what is out there in terms of coverage. We put your needs first in finding you the right policy for the right price. You are not a “one size fit alls” person, and your insurance is the same way, one policy does not work for every person.