We’ve all heard the spiel on life insurance.  We’ve heard it advertised on television, we’ve received it in the mail, I’ve even found myself giving the same boring spiel before.  The truth about life insurance is that although it’s not the most attractive topic of conversation, it is a necessary evil we must accept this day in age.  The problem with buying or selling life insurance is that it can get extremely expensive for a comprehensive policy, especially in an age where tobacco usage and diabetes runs rampant.  There is one way to curtail the long term costs of life insurance and that is to buy early.  Here are a couple reasons why buying life insurance early can be an excellent idea….

Buying Early Helps Build Cash Value.  Buying permanent life insurance (whole life and universal life) at an early age can help you accumulate cash value.  Just the same way people save and invest money for retirement at an early age, this practice can be applied to life insurance.  If you buy permanent life insurance early, this gives you a longer period of time to put money into the insurance plan and also allows you to draw interest on your money for a longer period of time.  Often times, when people get older, permanent life insurance becomes a less viable option due to the increase in premiums and the relatively little amount of years left for your money to earn you more money.  A financial adviser would tell you to start saving for retirement at an early age.  This is the same principle that should be applied with any sort of permanent life insurance products in order to maximize your investment.

Buying Early Costs Less.  Buying life insurance early in life almost always costs less.  This is due to a few different factors, but mostly because you have less negative risk factors early on.  The majority of people are healthier when they’re younger.  The majority of time people experience serious medical circumstances is when they’re older.  It’s no secret that in general, as you grow older, you become more susceptible to serious medical conditions, cancer, diabetes, etc.  When you elect to put a policy in place early in your life,  you tend to be healthier, weigh less, and have had no major medical issues.  The policy at this point will almost always cost less.

Buying Early Can Protect Your Family When They Need It Most.  Buying life insurance early in life can help protect a young family when they need it most.  Think about the difference between someone dying at age 30 and age 60 and how the money would most likely be distributed.  At age 60, most people have hit their financial peak.  Their kids have grown into adults and now work and are starting to have families of their own.  Age 60 is also an age where people are settled into a lifestyle, being “empty nesters”, and approach retirement.  Now, conversely, think of a 30 year old family man right here in Indianapolis.  He has a wife, two kids, and a third child on the way.  Think about the difference in how this money will be distributed and the true NEED of life insurance in this scenario.  In this case, there will now be a single a mother of 3 children, and a long road ahead.  Life insurance can help replace the income of the bread winner.  It can help establish college funds for the children.  Most importantly, it can help the mother raise 3 children and still live comfortably.  This, in my own personal opinion, is a fantastic reason to carry life insurance early on in your life.  Even if it’s a 20 to 30 year term policy, just to insure your children are taken care of until they can take care of themselves.

We’ve been life insurance advisers to many clients throughout our days in Indianapolis and all of Indiana.  There’s a difference between being a life insurance adviser and a life insurance salesman.  There’s no more schooling needed, and no more licensing needed.  But to be a life insurance adviser, you must just take the time to truly understand the need of the client and get them in a policy that will truly benefit them.  All it takes is that extra 30 minutes to slow down, and think about how you can really help your client.  At this point, you’re advising them and not just selling them.  We try hard to take this into consideration at Steffey Insurance and look to provide Indianapolis, Indiana and the rest of the Hoosier State with these services for many years to come.