You will never be this young again – or this healthy!
We had a meeting with a long-time client last week who reiterated the fact that many people probably wished they had purchased more insurance at a younger age (when it’s least expensive). Another client spoke of a plan he had with us 10 years ago, then dropped it for group coverage, then lost the group coverage when he lost his job. Now he has to pay 2-3x the premiums to reinstate life insurance because he is older now and not as healthy as he once was, but he thinks the protection is well worth it.
We constantly remind clients that we are all as young and healthy as we will ever be today. Therefore, we should all consider taking advantage of that.
A lot of younger clients are cost conscious, but for $250,000 of coverage on a 25 year old, the ballpark price (varies with each company) is approximately $22/month for 20 years of coverage.
How does this personal coverage compare to group coverage?
A personally owned policy may be a little more expensive than group coverage now, but it will likely be cheaper in the long run. The biggest advantage of personal coverage is that only you can cancel it. With group coverage, if you are let go, the company goes bankrupt, or you decide to change jobs, you will lose your group coverage.
Personal coverage just makes sense. You can ensure your spouse and/or children and/or other family members are financially protected if something were to happen to you. That’s peace of mind and proper planning.