Many employers offer life insurance policies as a supplemental benefit. Life insurance may seem like something only older people have, but the sooner you get it, the better.
How Does Life Insurance Work?
Life insurance is a promise from an insurance provider they will pay a lump sum when you die. There are two types of life insurance policies: term life insurance and permanent life insurance. Each month you pay a premium to your insurance company to pay for the life insurance.
Term Life Insurance
Term life insurance covers a specific amount of time where you pay the same premium and says that if you die during that period, your dependents will be able to claim the death benefits tax-free. Term life insurance is the most popular type of life insurance in the United States. Generally, it will cover a period of 10, 15, 20, 25, or 30 years. During the length of the policy, you will pay the same premium. Once the term expires, you will have to renew the policy each year at an increased rate.
Permanent Life Insurance
As a young person, your lifespan will likely be greater than 30 years from when you start your life insurance policy. Permanent life insurance lasts your entire life but does cost more. However, many permanent life insurance policies can build cash value.
The Sooner, The Better
Locking in your rate as early as possible is beneficial to you in the long run. You will not be young and healthy forever. In a few years, you could develop an illness or begin raising a family. The more dependents you have, the higher your premium will be. When you start a life insurance policy at a young age, you can lock in lower rates in your policy.
What Happens to Your Debt?
When a person dies, their debt is transferred to the next of kin. If you have no spouse or children, the debt will fall to your parents. This includes any medical debt incurred around your death. A life insurance policy can help your loved ones care for you after you die, no matter your age.
Partner with Malden Solutions Today
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.