LVED.com Estate Planning "Tip of the Day"

Why is it a good idea to buy to soon to be college graduate a life insurance policy?

Buying a life insurance policy for a soon-to-be college graduate can be a smart financial move for several reasons:

1. Locking in Lower Premiums

Young, healthy individuals qualify for lower premiums. Buying a policy now means they can secure a lower rate for the long term.

2. Building Financial Security

If the graduate has private student loans with co-signers (like parents), a life insurance policy ensures those loans won’t become a burden on their family if something happens to them.

3. Providing Future Insurability

Life insurance policies can come with options that allow policyholders to increase coverage later, even if their health changes.

4. Accumulating Cash Value (for Permanent Policies)

Whole or universal life insurance policies build cash value over time, which can be used for future expenses like a home, business startup, or emergency fund.

5. Covering Final Expenses

Even young adults can have unexpected medical or funeral costs. A policy can help cover those expenses, preventing financial strain on their family.

6. Encouraging Financial Responsibility

Introducing life insurance early teaches good financial habits and long-term planning.

email jnusslein@tandemhead.com for more details

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