Agent Owner, Gilmore Insurance Services, Marysville, Washington State
what is the best type of life insurance for young people? In my opinion dividend paying whole life is the best choice for young people who have not yet put themselves in such debt that the option of whole life has to take a back seat to debt protection. For young people whole life is a great choice as the price is cheap, the benefit is large and the price is locked in. It is the absolute best window of opportunity to take advantage of what whole life can do.
I believe a well-balanced, personalized portfolio is the best for young people. Young people should think about purchasing term insurance due to the fact you can get a lot more for lower premiums. They should also consider whole-life life insurance. Young people should also consider such products as: annuities, long-term care insurance and disability insurance etc.
Term insurance is a good product to cover expenses in case something happens to the young person before the whole-life life insurance has a chance to mature. How many times have young people been killed in car accidents or diagnosed with some form of a terminal illness? Then the family has to put little jugs and jars around in businesses asking for donations to cover the final expenses and other debts. That is not a time for embarrassing situations like that. That is a time for mourning and for family gathering together. Whole-life life insurance is a great product due to the fact the premiums do not change over the life of the insured. These products, if set up correctly and under current tax laws, allow the insured to pass on a legacy to his heirs tax-free. Annuities are great products for young people to start so they can plan for retirement. When you are ready to retire it is to late to start planning. Long-term care insurance is great in case you need some form of assisted living at any stage of your life. Disability insurance is great in case you get hurt and cannot work but you need money for shelter, food and other bills.
I am not suggesting you purchase all of these products at one time. I do recommend you meet with a licensed insurance professional and get a good foundation built. Then add to your portfolio over time. Keep in mind these products are generally less expensive when you are young. It is kind of like building a house. You do not want to start with the roof and work down. You should really start with purchasing the land, looking at blueprints, checking out contractors and pulling permits etc. Then you form the foundation and build upwards towards the roof.
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Term insurance is a good product to cover expenses in case something happens to the young person before the whole-life life insurance has a chance to mature. How many times have young people been killed in car accidents or diagnosed with some form of a terminal illness? Then the family has to put little jugs and jars around in businesses asking for donations to cover the final expenses and other debts. That is not a time for embarrassing situations like that. That is a time for mourning and for family gathering together. Whole-life life insurance is a great product due to the fact the premiums do not change over the life of the insured. These products, if set up correctly and under current tax laws, allow the insured to pass on a legacy to his heirs tax-free. Annuities are great products for young people to start so they can plan for retirement. When you are ready to retire it is to late to start planning. Long-term care insurance is great in case you need some form of assisted living at any stage of your life. Disability insurance is great in case you get hurt and cannot work but you need money for shelter, food and other bills.
I am not suggesting you purchase all of these products at one time. I do recommend you meet with a licensed insurance professional and get a good foundation built. Then add to your portfolio over time. Keep in mind these products are generally less expensive when you are young. It is kind of like building a house. You do not want to start with the roof and work down. You should really start with purchasing the land, looking at blueprints, checking out contractors and pulling permits etc. Then you form the foundation and build upwards towards the roof.
To your prosperity.