Most young adults don’t consider purchasing life insurance to be one of their top priorities. However, your 20s and 30s are the ideal times to buy whole life insurance. As you age, this type of insurance gets more expensive, so it’s better to lock in your rates sooner rather than later.

Why You Should Purchase Whole Life Insurance Early

1. Whole Life is for Life

While term life insurance only provides coverage for a defined amount of time, whole life insurance covers you for your entire life. As long as you continue to pay your premiums, the policy will pay out. Death benefits are guaranteed, whether it’s seven years or 70 years from now.

2. Premiums Don't Increase

Premiums are set when you purchase whole life insurance, and they never unexpectedly increase. Even if hyperinflation occurs or the stock market crashes, your premiums are set in stone. Since the starting rates increase as you age, it’s best to buy it while you’re still young to ensure the lowest possible premium.

3. Long-Term Tax Advantages

This type of insurance comes with numerous tax advantages. When the death benefit is paid out, it’s typically done so on a tax-free basis. You also don’t owe taxes when you’re taking out available money that you’ve paid in premiums.

4. Accumulating Cash Value

A portion of the premiums you pay goes toward building the insurance policy’s cash value. That value is guaranteed to never go down. You can even take out a third-party loan from a bank or credit union and use the policy’s cash value as collateral.

5. Ongoing Dividends

Most whole life insurance policies pay dividends. You have options for what to do with these dividends, including reinvesting them, using them to pay a portion of the premium, or simply taking them as cash.

If you’re considering purchasing whole life insurance, contact Nicole Gumm Groseclose Insurance Solutions in Clifton Forge, VA. Nicole has been providing insurance solutions for clients in Covington, Clifton Forge, Bath, Fincastle, Roanoke, Lexington, and Waynesboro for over 16 years. She can find the right insurance options for you through a wide variety of carriers, regardless of what you’re looking for. Nicole also can provide financial and retirement planning assistance as well. Call (540) 968-1569 to schedule a consultation or visit her website for more information about her services.