When you are fresh out of college and starting your first job, you get used to living on a tight budget. You stretch your paycheck to its maximum just to meet your monthly bills and after-work expenses. Paying a life insurance premium on top of your other monthly payments may not seem like a logical thing to do.
However, it is imperative to understand that buying Texas life Insurance at this point in your life may be one of the best things you can do for yourself. Let us explain to you why.
The period between your twenties and thirties is when many pivotal events unfold in your life. For instance, you may change jobs multiple times, get married, buy a house and have children. Unfortunately, along with these life changes comes a list of additional expenses. These can include car and mortgage payments, daycare for your child, and so much more. The list can seem endless.
This is exactly why buying a life insurance policy from a reliable life insurance company in your twenties is a smart move. It provides a reliable financial cushion for any unexpected expenses that may arise in the future.
Why Do You Need Life Insurance in Your Twenties?
There is no point in perplexing you with statistics or actuarial tables describing how insurance plans work. Instead, it will be more valuable if we give real-life examples to illustrate the importance of buying Life Insurance at a young age.
Here are a few scenarios where Life Insurance may come in handy:
You are the Only Earning Member in Your Family:
Many families depend on one sole income. If something were to happen to you, your spouse and children would be left with no one to provide them with financial support.
Purchasing Life Insurance now will not only help you support your family at the moment, but it also ensures that they are secure in terms of their future financial security.
You have a Student Loan:
With the rising costs of education, more and more students are borrowing money to pay for their tuition. At times, loans can accumulate into a substantial amount that may take decades to repay as per the payment plan.
If a tragedy occurs, your family may end up defaulting on those loans, which can create a financial crisis for your loved ones.
You have a Lot of Liabilities:
By the time you reach your 30s, you will have built up substantial financial obligations such as loans from friends and family, credit card bills, etc., which can be difficult for others in your family to repay. So if something happens to you during this time, it may become a burden on your family to repay your outstanding debt.
You have a Mortgage:
If you have a mortgage and no other source of income, your spouse may end up taking on your debt. So if something were to happen to you, the bank would take back your house and sell it to pay off the outstanding balance.
Life Insurance Coverage ensures that such loans would be paid off upon your passing, and your family would be left with the house, debt-free.
You have Debt:
Most everyone has some sort of debt they currently owe. Life Insurance helps you rest easy and know that your debts would be paid in full if something were to happen to you.
Benefits of Getting Life Insurance in Your Twenties
Now that you understand the importance of buying life insurance at your young age, let us tell you about the numerous benefits.
It’s Cheap and Affordable:
Life insurance is a lot cheaper in your twenties compared to when you are older. The older you are, the higher your premiums tend to be. Securing a life insurance policy at a younger age ensures that your premiums will be lower, and you may even have the option of choosing flexible plans.
Increase in Net Worth:
Your life insurance policy will also have a cash value attached to it. This value accumulates over time and can be a great asset. You are also able to use these accumulated funds in the future in case of an emergency.
It Takes Care of Your Health:
You may think that buying a life insurance policy is a waste of money as you are already young and healthy. However, no one can predict what the future holds, which is why being proactive about your insurance policy is a must.
If any pre-existing medical conditions pop up later in life, it can make it more difficult and expensive for you to qualify for a life insurance policy. This is why purchasing a policy while you are still young and healthy is the best option.
Tax Benefits:
Life insurance policies are considered very beneficial from a tax perspective. Any amount paid towards premiums is deductible under section 80C of the Income Tax Act. Therefore, you can claim an income tax deduction on the premium that has been deducted and save a large sum of money on taxes.
Security Against Job Loss:
A life insurance policy will also protect you from any unforeseen events that may lead to a loss of your job. The insurer would pay out a sum of money as per the terms and conditions of the plan, which will help tide over you and your family for any financial crisis created by the event.
Types of Life Insurance Policies Available
There are many types of life insurance policies for young adults. However, the best kind of plan for you depends on your specific needs and budget.
Term Life Insurance:
Term Life Insurance offers affordable premiums and favorable terms. The only drawback with this kind of policy is that it will terminate upon completion of a term which means you will have to keep renewing your policy.
Term plans are beneficial for young people as they provide good coverage and can be renewed and reconstructed if their income increases in the future.
Whole Life Insurance:
This form of life insurance provides lifelong protection once the customer has taken it out. Whole Life Insurance is a good plan and offers extra benefits. It can also be used to reduce the terms of your loan.
However, this policy comes with a higher premium rate than that of term plans, but there’s no need to worry as you can avail tax benefits under section 80C which will help lower premium costs in the future.
Universal Life Insurance:
Universal Life Insurance is perfect for young adults who are looking to earn higher returns on their investments.
Whether you want something extraordinarily cheap or want to invest in a financial proposition, a universal life insurance policy can help you achieve your goals.
Variable Universal Life Insurance:
If you are looking for a mix of life insurance and investment, Variable Universal Life Insurance may work best for you. This type of policy not only offers affordable Life Insurance but it allows you to invest and gain equity.
How TX Insurance Quotes Makes it Easy For You To Get Insured
TX Insurance Quotes is a group of proficient life insurance providers in Texas. We offer affordable life insurance policies that can be easily purchased online from the comfort of your home. Our quick and simple online application process makes it easy to get a life insurance plan in no time.
All you need to do is provide some basic details about yourself. We will then analyze the data provided and recommend a suitable plan to best suit your needs and budget. This allows you to compare quotes and choose the policy that works best for you. In addition, we provide you with online support 24/7 to answer any questions you may have about your policy!
Conclusion
Life insurance is essential for young adults. It helps to protect you against any unforeseen incidents. Life Insurance Policies can also be an extremely wise investment to help secure your future.
Now that we’ve walked you through why it’s essential to take out a life insurance policy at a young age, it’s time for you to take charge of your future and invest in a life insurance plan today!
Contact TX Insurance Quotes to get insured and secure your future!
