Is It Worth It to Buy Whole Life Insurance While You're Young?

NEW YORK, September 9, 2021 (Newswire.com) - iQuanti: Whole life insurance is a type of permanent life insurance that provides lifelong coverage with consistency and certainty. In addition to the death benefit, one of the main distinguishing features of whole life insurance is its cash value. The cash value is built up over time as you pay the premium.

The guarantees of whole life insurance 

Whole life insurance typically comes with guarantees, so you and you beneficiaries know what to expect. These guarantees may include: 

The guaranteed death benefit doesn't expire 

The guaranteed death benefit is a safety net for your beneficiaries. Furthermore, unlike a term policy, whole life insurance guarantees that your beneficiaries will receive a payout upon your death (as long as you keep paying your premiums), whereas a term policy only provides a death benefit if you die during the policy's term.  

Some companies offer guaranteed minimum cash value  

Your cash value accumulates over time as you pay your premiums, and some companies guarantee it will grow at minimum rate. This means that the growth of your cash value cannot go down unless money is taken out of it.  

Your premium payments won't go up 

Given that life insurance premiums tend to be higher the older you are, it can be good to secure a low premium at a young age, so that your premium can stay low as you age and advance in your career.  

The bottom line 

Given the terms and benefits of whole life insurance it may be worth getting a policy while you're young. One of the main benefits of getting whole life insurance when you're young is the ability to lock in your death benefit and premiums as well as beginning to build up cash value. 

Ultimately if you want coverage to last your entire life, whole life insurance offers a lot of peace of mind and may be a great option for you. 

Source: iQuanti, Inc.