When you’ve graduated from school and are starting that first job, the last thing you may be thinking of is getting a life insurance policy. After all, you are young, unattached, and are not likely to die anytime soon. The Smith Insurance Group, Inc., serving Sandy, UT, would like to explain why getting life insurance is a good idea early in life.
Having a life insurance policy when young is a good idea on the rare possibility you do die to have a way to pay your final expenses. However, a little-known secret about life insurance is that it makes a pretty good financial investment that should be part of anyone’s portfolio.
If you keep reinvesting the interest and dividends that your life insurance pays out as well as pay your premium, the cash value will grow over time. You will be able to access that cash value if you need it to help pay for big-ticket expenses such as a new home or student debt through policy loans and partial surrenders.
Once you retire, and the need for a death benefit has decreased, with your children having become adults, the cash value of your insurance policy can be accessed to supplement your retirement income. You should keep enough of a death benefit to pay for final expenses.
The main advantage of starting a life insurance policy when young is that the premiums are low and cannot increase so long as you maintain it. Getting life insurance when you’re older can be difficult, especially if you develop health problems.
For any questions you might have about life insurance, contact the Smith Insurance Group, Inc. serving Sandy, UT.