Later than previous generations, the Millennial generation is not doing things that used to be traditional milestones. This could be partially due to the Great Recession of 2009, where many people faced higher rates of unemployment and lower incomes. This led to delays in purchasing life insurance. Al Schor, field director of Northwestern Mutual, stated that many of his younger clients have a difficult time recognizing mortality and illness.
Schor says that other factors should be considered when purchasing life insurance. A policy does not just include death benefits or protecting loved ones. It gives people a balanced and strategic financial plan. Those who buy a policy earlier in life lock the prices if they buy a permanent policy. Many policies become a stable backup plan, and thirty percent of those involved say it offers a slow and steady approach to investment.
Buying a policy at an early age helps you to accumulate the cash value. This is similar to how some people save their money for retiring at an early age, and the same principles could be applied to buying life insurance. Buying a permanent policy allows you to draw interest on the money for a larger period of time. At age 60, most people hit their financial peak, but a family man with two kids and a wife needs to support his family if something happens to him.
Important to note, you should purchase a permanent policy when buying young. As you age, your insurance premiums will rise, so it will cost you more if you did not purchase a permanent policy. It costs less money when young because health problems are less prevalent. If you have a high risk for cancer or other health concerns, it can make premiums too expensive to buy later in life.
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