When a person carries a life insurance policy, they pay regular premiums to a plan provider. Then, upon the policyholder's death, the provider pays the plan's beneficiary a certain amount of money, known as a death benefit. There is a common misconception that only older individuals need life insurance. In reality, having this type of policy offers some distinct advantages for young adults, as discussed below.

Why Buy Life Insurance Early?

1. Protect Your Loved Ones

The most significant advantage of life insurance is that it lets you financially take care of loved ones in the event of your premature death. If you’ve recently gotten married or started a family, your passing can leave your spouse and children facing severe financial challenges. This not only includes keeping up with routine expenses but also paying for your funeral and any related medical bills. If you are single, you may want to provide financial support for a parent, sibling, niece, or nephew.

2. Enjoy Cheaper Premiums

Life insurance providers know younger people are generally healthier. Since there is low risk involved, agents tend to offer this demographic less expensive premiums, which are then locked in for the length of the policy. If you become ill or injured, the provider cannot cancel the coverage or raise their prices as long as you continue paying.

3. Build Value

The longer you carry a policy, the more time you'll have to accrue a substantial death benefit for the beneficiary. But there are also ways you can profit while still living.

With a whole life insurance plan, the policyholder can make a cash-value withdrawal—in the amount of the premiums they've paid into the plan—during their lifetime. This is similar to having another retirement account. In most cases, the withdrawal is nontaxable.

If you are interested in life insurance, contact Robert Rung Insurance. Since 1972, they have been serving Lincoln, NE, and the surrounding areas, offering affordable products that help clients financially protect themselves no matter what the future may send their way. Call (402) 483-2279 to request a quote. Visit them online to learn more about their services.