Younger often means cheaperGenerally speaking, the younger you are, the less you'll pay in premiums. While there are many factors that determine how much you'll pay in insurance premiums, age plays a big role and makes a strong case for buying life insurance as early in life as possible. Why? Because insurance is about risk. When a life insurance company considers you for a policy, they focus on the risk that you, the applicant, is likely to make a claim at some point in the near future. Therefore, a younger person poses less of a risk than someone who is much older, and why life insurance premiums are considerably lower the younger you are at the time of your application.
Younger often means healthierExcellent health and youth are closely connected. Because most health issues tend to develop later in life, is yet another reason why you should get life insurance when you're young and before health conditions develop. Health plays a significant role in how much you'll pay for life insurance and why life insurance companies pay particular attention to your medical history when underwriting a policy. That doesn't mean that you won't be able to get life insurance if you have health issues, but that you'll typically pay a lot less in premiums if you secure a policy before chronic conditions develop.
Younger means getting more coverage for the futureNot only will being young and healthy help keep your insurance premiums lower, but it allows you to buy a lot more insurance coverage for the future. For example, later in life you may need a $500,000 policy when you have dependents, but a larger policy at that time may not be affordable. While it may not seem as important to have a large amount of coverage as a single person in your early 20s, that could all change just a few years down the road when you get married and start a family.
Nobody likes to think about death and dying, especially when you're young and healthy. But when it comes to buying life insurance, the earlier you buy it, the more you'll save. It can be a lot less expensive to get a life insurance policy today, than it may be in the future when you have a family to care for.