So many of us are more concerned with the present than the future, but when it comes to life insurance, the opposite is true. The younger and healthier you are, the better chance you have of getting quality coverage at an affordable rate. Even if your health declines over time, term life policies come with a conversion feature that can help you lock in coverage and protect your loved ones. Let’s take a look at why it pays to buy life insurance when you’re young and healthy.
It’s important to consider that not everyone has the luxury of being able to purchase a life insurance policy later in life due to medical issues or age-related restrictions. Term life policies offer an easy solution through their conversion privilege: as long as the policyholder converts before their term expires (typically 10-30 years), they can convert their existing policy into a permanent one without undergoing another medical exam—even if their health has declined since taking out the original policy! As such, even if someone develops a condition that would otherwise disqualify them from buying any kind of coverage later in life, they can still get some peace of mind knowing that they have locked in coverage during their younger years. This conversion privilege typically allows you to convert what you can afford vs requiring the full policy to convert.
The obvious benefit of buying life insurance when you’re young is cost savings. Premiums are based on age and health—the younger you are, the less expensive your policy will be because you pose less risk to insurers. This means that if you buy early, your premiums will remain low for many years—even in cases where health status changes.
In addition to this, you can also buy Child Insurance Riders to cover your children under the same life insurance policy as you. This rider allows your child to convert their coverage up to 5x what you provided, sometimes more. No one likes to think of the insurability of your children being a potential issue, but it is becoming more common.
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