Younger adults have always been a difficult market for life insurance agents. They typically feel they are indestructible and will live forever. On top of that is the feeling that life insurance is unnecessary because they tend to marry later in life and don't have the responsibility of family. Nothing could be farther from the truth though.
Our young adults are missing one vital piece of information that could really work in their favor and that is they could be leveraging their good health and young age. Just because they don't think they have a need for life insurance now doesn't mean that they won't need it in a few years.
Life insurance is cheaper for those who are younger, healthier and don't smoke. Everyone knows that. And for those who are in their 20's, taking advantage of this could really benefit them as they age. Whether they are looking for just a term policy or something that can build cash value down the road, there's a good probability that our younger people can get a great deal.
For instance, purchasing an Indexed Universal Life (IUL) policy and overfunding it from a young age offers a much better opportunity of growth than a traditional whole life policy would. These policies also include features like early withdrawal for income streams, living benefits that you can use while you're still alive, and some tax advantages.
I often tell the story of a young attorney who really didn't care about the life insurance portion of the policy as much as he wanted a safe place to put his money and retire a bit earlier than most. The illustration I rand for him showed some great tax-free withdrawals (in the form of a loan) as well as the peace of mind knowing that if something were to happen to him his wife would be okay financially.
That same policy for one of his colleagues who was just a couple of years older but was overweight and a smoker couldn't produce the same results. For him, the "cost of insurance" would have been taken most of the gains of the policy off the table. Again, health matters.
But let's say you don't have the income to spare like the young attorney did but you still want to lock in on a great rate for life insurance. Traditional term policies were always the way to go for coverage during your working years. The problem was that the terms usually maxed out at 30 years, leaving people uninsured (or uninsurable if their health got bad) when they needed the coverage most.
For these people, we now have a carrier offering a 40- and 45-year term policy, which can lock in a rate to age 65 or even 70 years old. Of course, underwriting is still applicable, but it's still a great deal. These policies are aimed at the "millennial" market who are forward thinking and know that the future will be here faster than expected.
If you are young, healthy and don't smoke (or know someone who falls into this category), use the "Get a Quote" button on the upper right of this page to see if a term policy would fit in your budget. And if you want an illustration for our IUL product, book a a phone appointment and we'll be happy to talk with you to find out what your goal is.
In the meantime, stay healthy and let us know if we can help you secure your family's financial future.
Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!
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