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Your Financial Life
By David Dorion / Jan 27, 2015

Life Insurance: You’re Never Too Young

Healthy Young Person Pushed In Air By Insured Father

Life insurance isn’t just for the mature and seasoned—it’s for people who want to protect their loved ones in the event of their death. You should also know that the younger and healthier you are, the easier it will be for you to obtain life insurance. Plus, there is also a chance that purchasing life insurance while you’re young will cost you less as you help safeguard those closest to you.

Question: What is life insurance?

Answer: Life insurance comes in two types, term life insurance and permanent life insurance.

  • Term life insurance offers coverage for a length of time, or “term,” which is usually from 5 to 30 years. The advantage of term life insurance is it’s general affordability. There is no cash value with term, and premiums increase at pre-determined intervals, such as 5, 10 or 20 years.
  • Permanent life insurance provides life-long insurance protection if the premiums are paid. Unlike term life insurance, it can accumulate cash value that over time can grow on a tax-deferred basis. In time, the policy’s cash value can be accessed for a variety of needs. Permanent life insurance includes whole and universal life insurance. 

Insurance is paid out in a lump sum upon the insured’s death, or over a set period of time.

Q: Does being young and healthy mean I’ll pay less for life insurance?

A: The cost of life insurance depends on many factors, including your age and health at the time you purchase a policy. The advantage of purchasing life insurance when you are young is that generally your rates will be lower.

As you age, your mortality risk increases as well as the likelihood of developing health problems, causing you to be a higher risk to life insurance companies. In short, as you get older, life insurance is harder to obtain and gets more expensive. Of course other factors are involved, such as your occupation or life style, which could increase your insurance rates.

Q: Can I afford life insurance?

A: Yes, you may think you can’t afford life insurance, however, those who are young tend to pay lower premiums, which can make life insurance more affordable. There are many insurance products to fit every budget.

Q: Is life insurance only for married people?

A: No, life insurance is for everyone. There are many reasons single people may want to consider life insurance. The death benefit could be used to help provide funds for any children you may have, pay for a funeral, or pay off personal debts and medical bills. If you aren’t married now, there’s a chance you might be married in the future. Once you’re married, your spouse can become your beneficiary. Even if you don’t get married, you may still have people who are dependent on you, such as parents and siblings.

Q: Does life insurance have benefits other than death benefits?

A: Yes, but it depends on the type of policy you own. If you have a permanent life insurance policy that has accumulated sufficient cash value, you can borrow against it tax free. Policyholders can use these funds to help supplement their retirement income, help pay college tuition or for any other reason. Additionally, some life insurance policies offer optional “living benefits,” such as a long-term care rider, which can help offset costs.

While there is no magic age or date to sign up for coverage, the sooner you get life insurance, the more money you can save, while also ensuring you’ll have coverage later in your life.

Browse the types of life insurance polices Transamerica offers now.

Insurance products and services are offered or issued by Transamerica Life Insurance Company, Cedar Rapids, IA; Transamerica Financial Life Insurance Company, Harrison, NY (licensed in New York); Transamerica Advisors Life Insurance Company, Little Rock, AR; Transamerica Premier Life Insurance Company, Cedar Rapids, IA; Stonebridge Life Insurance Company, Rutland, VT; and Transamerica Casualty Insurance Company, Columbus, OH. Variable products and mutual funds are underwritten and distributed by Transamerica Capital, Inc., or Transamerica Investors Securities Corporation, each a broker/dealer and member of FINRA. Securities and investment advisory services offered by Transamerica Financial Advisors, Inc., a broker/dealer, member of FINRA, SIPC and a Registered Investment Adviser. Investment advisory services focused on the unique needs of individual retirees, retirement plans and their participants offered by Transamerica Retirement Advisors, Inc., a Registered Investment Adviser. References to Transamerica on this site pertain either to an individual company or collectively to these and other Transamerica companies. This site may not yet be approved by the Departments of Insurance in all states at the time of publication. Transamerica companies are part of the AEGON Group. Copyright 2011 – 2014 Transamerica Corporation, 4333 Edgewood Road NE, Cedar Rapids, IA 52499—All Rights Reserved.

On July 1, 2014, Transamerica Advisors Life Insurance Company of New York merged into Transamerica Financial Life Insurance Company. On July 31, 2014, Monumental Life Insurance Company changed its name to Transamerica Premier Insurance Company, and Stonebridge Casualty Insurance Company changed its name to Transamerica Casualty Insurance Company. On October 1, 2014, Western Reserve Life Assurance Co. of Ohio merged into Transamerica Premier Life Insurance Company. The merger and name changes may not be effective in all states at the time of publication.

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