Millennials typically expect life Insurance to cost 3-4x MORE than it really does! However, life insurance for young adults doesn’t have to be expensive. In fact, the younger you are when first purchasing your policy, the more affordable your premium will likely be! When approving life insurance applications, carriers looks at factors like age, medical history, nicotine and alcohol use, and dangerous hobbies. Some conditions can cause the denial of an application, so most policies require a medical exam. However, your health isn’t the only thing factoring into your cost. The type of policy, the coverage amount, the length of the policy term, and any additional policy rides also factor into your premium amount.
Life insurance is not one-size-fits-all. Everyone’s needs, wants, budgets, and goals are different. However, you can get a good estimate of how much of a death benefit your family will need to maintain their life style. Consider things like your mortgage, monthly bills, taxes, education expenses, and debts. Ideally, the coverage amount should be large enough to meets the needs of all those who depend on you. There are several options for benefit payouts. You can opt for a single lump-sum payout or monthly payments, which is a great option for young beneficiaries. Additionally, you can also structure the policy to pay into an individual retirement account for your spouse. We have options for every budget and out agents can help customize your coverage to your family’s needs!
Types of Life Insurance
Young adults looking for life insurance have more options than their parents and grandparents did! There are two different types of life insurance: term and permanent. Term life insurance has guaranteed level premiums for a fixed policy term, usually 10, 20, or 30 years. The premium will likely go up if you maintain the policy after the initial term is up. This type of policy is a great option for those on a budget as it generally is more affordable than permanent policies. It’s also go for those with immediate financial concerns, like a mortgage or a child heading off to college.
Permanent life insurance provides coverage for the rest of your life, as long as premiums are paid. Permanent life is made up of two main policy types: whole and universal. Whole life insurance policies has permanently level premiums and can also generated cash value that can be borrowed against. Universal life insurance is a much more flexible option. You can adjust size of the premium amount, benefit amount, and accumulation portion, within the policy limits. You can even build up cash value to pay your future premiums!