3 things about life insurance you didn’t know

Midsection of female agent with life insurance documents in court
In order to get the best life insurance coverage for your needs, it helps to keep these facts in mind.

Kittisak Jirasittichai/EyeEm

Life insurance is considered a fundamental part of sound financial planning. If you’re a parent, spouse, landlord, or business owner (or a combination of the four), you probably need the protection offered by life insurance.

But just because the decision to obtain a policy is often obvious does not mean that the task of ensuring the good kind in the right amount may be less clear. There is a lot of misconceptions this can make it difficult to obtain a policy.

A life insurance adjuster can guide you through this process and answer any questions you may have. They can even help you start now with a free quote.

3 things about life insurance you didn’t know

In order to get the best life insurance coverage for your needs, it helps to keep these facts in mind.

Young people should have it

There is a popular misconception that young people don’t need life insurance. But many young adults should in fact – and they should act now while they are healthy and levels are low.

Although life insurance benefits policyholders of all ages, there are some special benefits that young adults should take advantage of. The main one is the cost. As you age, health issues arise and you will become riskier to insure. But if young adults buy life insurance now, they can get a lower rate (before persistent health issues arise).

Life insurance policies could also help pay off debt, such as student loans, if the insured dies before the debt is paid off.

So, talk to a life insurance expert now who can help you build a personalized policy.

It can be used to pay off a debt

Life insurance can feel like a bill you always have to pay without any of the rewards. But some types actually have a withdrawal option which you can access during your lifetime. Accordingly, you can use this money to repay the debt, household repairs or college fees. The possibilities are many.

Two things to note here, however: Not all policies offer a cash option (only whole life insurance policies offer this advantage). You will also need to accumulate cash value over time. So if you just opened your whole life plan, you probably won’t be able to use much (if any) of the money.

Over time, however, you’ll accumulate enough money in the plan to use it as you see fit.

You can get coverage for $1 million or more

If you’re young, healthy (and ready to take a medical exam to prove it), you can get a significant amount of life insurance coverage. It can range from hundreds of thousands of dollars to $1 million or more.

Depending on your personal financial situation and goals, a $1 million policy may be a good idea. You’ll need to be eligible, but surprisingly many people are – and they don’t have to break the bank to get a policy. Rates and fees vary, but it’s not inconceivable that healthy adults could get coverage for a million dollars or more for a double-digit sum each month.

Insurance companies are more likely to approve you for a million dollar policy when you are young and unlikely to have your beneficiaries cash it in, though, so again it pays to start early.

Apply now and see what you can qualify for or use the table below to compare your options.

The bottom line

The benefits of life insurance are multiple and significant so don’t be put off by rumors and misconceptions. As mentioned above, if you’re young and healthy, you can probably get a robust protection plan at a reasonable cost.

Speak with a life insurance professional now which can help you get started.

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