Why is Life Insurance Least Expensive for Those Who May Need It Least?
You have probably heard it before. “Life insurance is cheapest when you are young and healthy.” But isn’t this also the time when life insurance may be less critical?
Well, it is a fact. Life insurance is not only cheaper when you are younger and healthy, but it is simpler to get, especially in large amounts. Young and healthy applicants can usually qualify for significantly more coverage without the need for a physical, especially if they don’t smoke, are within height and weight parameters and in good overall health.
For most, this is common sense. Young, healthier people will usually live longer and the short-term payout of the policy is less likely. All this being said, you could be young and healthy and still benefit greatly from a sizable life insurance policy.
Let’s take a young married person with two children, a house, debts and earns most of the family’s income.
This person could be in their twenties, but may have hundreds of thousands of dollars to pay on a mortgage. They could incur significant medical bills, have a car loan or school loans and credit card debt. If they want to provide for the education of their two children, that alone can reach into the hundreds of thousands of dollars. If a spouse were required to work following the death of the insured, there could also be childcare expenses and, of course, basic day-to-day living expenses.
So the point is this. It is not necessarily true that the young and healthy are less likely to need large amounts of life insurance. In fact, if they are beginning what is a promising life, they may be most likely to need significant life insurance coverage.
Are you young and healthy? Are you starting a life with a home, new family and earn a solid income? Let’s discuss your situation and your need for life insurance. Our independent life insurance agents can offer you coverage from a variety of companies, so you can choose a policy you are comfortable with. We look forward to assisting you.