{"id":69,"date":"2019-12-20T17:18:20","date_gmt":"2019-12-20T17:18:20","guid":{"rendered":"http:\/\/www.milifeinsurance.ca\/blog\/?p=69"},"modified":"2021-12-07T13:21:47","modified_gmt":"2021-12-07T13:21:47","slug":"why-obtaining-life-insurance-at-a-younger-age-is-beneficial","status":"publish","type":"post","link":"https:\/\/www.milifeinsurance.ca\/media\/why-obtaining-life-insurance-at-a-younger-age-is-beneficial\/","title":{"rendered":"Why Obtaining Life Insurance at a Younger Age is Beneficial"},"content":{"rendered":"\n<p>If you\u2019re currently in your 20s, insurance might seem unnecessary or even confusing. What\u2019s the point? Isn\u2019t life insurance for people with kids or major assets and liabilities? Most twenty-year-olds don\u2019t have assets, but instead, have thousands of dollars of student loan debt. You will be surprised to learn that life insurance can help you pay off those loans and even save for assets in the future. <u><a href=\"https:\/\/www.milifeinsurance.ca\/blog\/why-now-is-the-time-to-buy-life-insurance\/\">The trick is buying it while you\u2019re still young<\/a><\/u>. <\/p>\n\n\n\n<h2 style=\"font-size: 20px\"><strong>Term Life VS. Permanent Life Insurance<\/strong><\/h2>\n\n\n\n<p>There are two main types of life insurance: term and permanent. There are pros and cons for each. <\/p>\n\n\n\n<p><strong>Permanent life insurance<\/strong> \u2013 Some permanent policies grow in cash value by gaining interest and paying an annual dividend. One day when you\u2019re ready to buy a house, have a wedding or pay off your loans, you can withdraw that cash value. Or, you could leave the cash in the policy to continue growing until you\u2019re ready to retire. This works well when parents decide to buy a Whole Life policy for their children. Then, you would have a lump sum to lean on. In a world where millennials are more likely to start businesses than work for an employer, having extra retirement savings is valuable.<\/p>\n\n\n\n<p>The other option is <u><a href=\"https:\/\/milifeinsurance.ca\/life-insurance\">term life insurance<\/a><\/u>. While this type of insurance has relatively low monthly fees, it also has an end date. Term policies can be set up anywhere between 10 and 40 year terms. The goal of term life insurance is to have coverage in place to meet your financial obligations if you are not here. For example, if you pass away and you still have a mortgage on your home and children to raise. Whoever you name as the beneficiary, often children or other family members receives the full amount as a tax-free death benefit. <\/p>\n\n\n\n<h3 style=\"font-size: 20px\"><strong>Save Money on Insurance by Purchasing it Young<\/strong><\/h3>\n\n\n\n<p>Regardless\nof which type of insurance you choose, it\u2019s important to know that both\npolicies get more expensive as you age. Right now, as a twenty-something, you\nare likely healthy and asset-free. From the insurance company\u2019s point of view,\nyou\u2019re low-risk. That means your monthly fees will be low. Since permanent life\ninsurance policies stay fixed, starting one now could save you money in the\nlong run.<\/p>\n\n\n\n<h3 style=\"font-size: 20px\"><strong>Your Health Can Change<\/strong><\/h3>\n\n\n\n<p>The sad truth is that as we age, our health changes. We tend to have more issues and become more prone to different diseases. Once your health changes so do your risk in the eyes of the insurance company. If this is the case, two things can happen. The first is when applying you can get \u201crated\u201d and the second is you can get outright declined. A rating means you are at a higher risk than the average person and for that reason are going to be charged more for the same coverage. That\u2019s why obtaining insurance when you\u2019re young and healthy is so important. In other words, you need to insure your insurability. <\/p>\n\n\n\n<h3 style=\"font-size: 20px\"><strong>Term can be converted into Permanent later on<\/strong><\/h3>\n\n\n\n<p>Life insurance is often more affordable when you\u2019re young and your policies have more time to grow in value. If you\u2019re concerned that permanent life insurance is out of your current budget, start with a term policy. The great thing about this policy is that it can easily be transferred into permanent policy later when you\u2019re in better financial standing. At that point, you won\u2019t even have to go through the medical underwriting process. However, the premium will update to your new age and the corresponding premium of the permanent product.  Your best bet is to speak with a highly trained MILIFE broker that can shop the market for you and educate you on the options available to you as well as the benefits of those coverages. This way you put the right product in place for your unique situation. To speak with one of our highly qualified agents you can visit our site at <u><a href=\"https:\/\/www.milifeinsurance.ca\/\">MILIFE Insurance &amp; Investment Inc<\/a><\/u>. Or, call our office at 416-366-6767. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re currently in your 20s, insurance might seem unnecessary or even confusing. What\u2019s the point? Isn\u2019t life insurance for people with kids or major assets and liabilities?<\/p>\n","protected":false},"author":1,"featured_media":51,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":""},"categories":[3],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Obtaining Life Insurance at a Younger Age is Beneficial<\/title>\n<meta name=\"description\" content=\"There are many benefits of getting life insurance at age younger age. 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