Why You’re Never Too Young For Life Insurance

November 4, 2015 by USAAVoice Team, USAA

You’re young, single and childless.

Why in the world would you need life insurance?

Kenny Sutton, director of Life Insurance Product Management at USAA, says he gets that question all the time, but for him, the answer is a no-brainer. Getting life insurance as soon as possible can help save money and increase flexibility in the long run.

“We want to make sure young people take advantage of the benefits they can take control of,” he adds.

Here are two compelling reasons Sutton says it’s never too soon to think about life insurance:

• Cost savings. It can pay to lock in the cost of life insurance premiums while you’re young, Sutton says. The premiums will only increase for individuals who wait to purchase a policy as they age and begin having more health problems. For example, a 20-year-old would pay an average of $12 a month for a $100,000 USAA level term policy, but someone who waits until age 40 to take out the same policy could pay as much as $50 a month, possibly more, Sutton adds.

“Once you buy the policy, you have options,” Sutton says.

You can always revisit coverage and increase it as your budget and circumstances change, Sutton says. Life events such as getting married and having children may influence how much coverage you need.

• Increased flexibility. Fewer employers offer life insurance these days, so you may end up at a job where it’s not available. Knowing that your life insurance coverage is not linked to your employment provides peace of mind. Plus, having a personal life insurance policy is one less consideration you have to take into account if you change jobs during the course of your career.

Military-focused policies such as the Military Protection Plus policy¹ from USAA Life Insurance Companies include additional flexibility for service members. Military Protection Plus includes the Military Future Insurability Rider, which provides a 240-day window to buy additional life insurance to replace the Servicemembers Group Life Insurance (SGLI) coverage that ends when the member leaves the military through separation or retirement. The rider offers the same opportunity when Family Servicemembers Group Life Insurance (FSGLI) ends due to separation, retirement, divorce or death.

The USAAVoice Team is committed to providing information that helps to facilitate the financial security of the military community. The advice in our content is grounded in the principles of sound money management and covers a range of topics, including personal finance, retirement, investments, auto, home, life, health and other areas relevant to our business and the audience we serve.

Originally Posted at Forbes on September 30, 2015 by USAAVoice Team, USAA.