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Should You Get Life Insurance If You're Under 30?

It's a wide spread misconception that life insurance is just for older people. In our experience there are certain situations where even people under the age of 30 could benefit from life cover. Ask yourself the following simple question:

Do you have dependents?

If the answer to this question is a resounding "yes" then life insurance is an absolute must and you should jump straight to "the steps to getting a great policy" and skip the next paragraph.

Many people believe that single, independent peoples under the age of 30 with no dependents have little or no need for life insurance. However, it is precisely around this age that most people get married and have children. In today's world many younger people have large debts, commonly due to student, home or car loans. These factors make under 30 one of the most important times to find inexpensive insurance deals. Insurance companies understand young people are generally healthier with a higher life expectancy, which means they are able to offer incredibly affordable life insurance. Term life insurance can last at least 30 years while permanent life insurance will give lifelong immunity, guaranteed death benefits and cash values.

It's important to understand which of the two insurance types is best for you. Below we will discuss this and explain in simple steps how a young person can find the best insurance deals.

Step 1: Plan for the future.

Never forget to think about your expected and unexpected future. Life style, career paths, investments, health and debt are all aspects of your life that can change in an instant. Most people under 30 will expect to get married, have children, make investments, buy a home or start a business. These things alone are reason enough to need life insurance but when you factor in unexpected events like illness, the need is very great indeed. You should make a list of future changes in your life, work out when they are likely to happen and how much they could cost you. The most important thing is YOUR MOTIVE behind purchasing policy.

Step 2: Find a reputable insurance provider.

The insurance market has become so crowded that trying to find the very best deal on your own would likely result in you from suffering information overload. However, it is incredibly important to research your options before speaking to an analyst or broker. The internet has a lot of information on insurance providers and policies right at your fingertips. Friends and family most likely have their own experiences to share with you and there are many companies which help find you the best insurance deal for free whilst receiving a commission from the companies they refer you to.

Step 3: Type of insurance policy

You can use the information below to do a "list and match" analysis with step 1. The expert will guide you better. However, what you can do is to list down all the changes found in step 1 and then count the number of years for expected changes and needs from today. Now find the insurance deals available keeping in mind the following things:

1. Amount of coverage needed. The greater the coverage needed, greater the amount of premium to be paid.

2. Duration and type of insurance policy (level-term or decreasing term life insurance, traditional, universal, or variable coverage whole life insurance etc)

3. Your annual income and required annual premiums. In some insurance policy types, you have the option to increase or decrease the amount of premium paid out as and when needed. For example you are now receiving social security fund or your children have finished college so you reduce disbursement as amount of money needed at the time of death is far less than that expected at the start of insurance policy. It might be that you and your wife both earn and can pay more premiums and have greater coverage at the time of death.

4. Look for the ultimate increase in premiums to be covered by your future level of income in case of changes in your age and health factor.

5. Is term insurance convertible to whole life insurance? In case you are unable to undertake expensive deals right now but find yourself suitable enough to avail whole life or permanent insurance in near future, you can buy term life insurance and convert it into whole life insurance later but within specified number of years stated in the contract.

Last but not least, don't panic. It's not difficult to find a good insurance deal when you take a small amount of time to research and understand your options. Make sure you have collected as many insurance quotes as possible before proceeding to select the best one.

Article Source: http://EzineArticles.com/7885754