home insurance lexington ky

Reasons to Get Life Insurance While You’re Young

It’s normal to enjoy life while you’re still young. Having life insurance may not be on top of your priorities right now. Maybe you’re single, healthy, or living on a tight budget. So why should you pay monthly insurance premiums, right?

However, it is during this time that you should start planning your future by building a strong financial foundation. One way to do this is to have life insurance. This is considered an ultimate financial tool that can help you during emergencies. But aside from that, there are other reasons why you should get it now.

Get Great Rates

Insurance rates in Lexington and other places are determined by certain factors, such as age. Buying insurance at a younger age will help you get lower premiums, which will remain the same for the duration of your policy unless you decide to change its amount. The rate you may have in your 20s is greatly different from the price you’ll get when you’re in your 30s.

Health is another factor that can affect your insurance premium. At your age, you’re most likely at your healthiest. It’s best that you take advantage of it before any health conditions develop. Any illness can increase the amount you have to pay for your policy.

Build Credit

When you get permanent life insurance, there’s a chance for you to build your credit. This type of insurance comes with a built-in cash value that increases over time. As it accumulates, you’ll be able to borrow against it. If you get this type while you’re young, your policy will have more time to grow, and you can get a decent amount of cash value.

As your policy’s cash value grows, you’ll be able to enjoy a number of benefits when you borrow against it. You can take out a loan at a lower rate, create an investment portfolio, and even supplement your retirement income.

Protect Your Loved Ones

It’s normal to have debts while you’re young. This may come from student loans, your first car, or your credit card. If you die while you still have debts in your name, your insurance can protect your loved ones from the burden of paying them off.

If you’re living with someone and have a mortgage, your policy can protect your partner by covering the remaining amount. A lot of young couples on a tight budget can get term life insurance since they can have coverage for the same length of time as their mortgage.

Protect Your Future

As a young adult, one of your responsibilities is to create a good financial foundation for your future. And one of the best ways to do it is to get insurance now. Not only will you get lower insurance rates in Lexington, but you’ll also have a protected future ahead of you. Contact us at Nicholson Insurance today to get the proper guidance needed to choose the policy that suits you best.