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Posted: 1 Sep '21

Term Life Insurance is a Smart Move for Young Professionals Starting their Practice. Here’s Why.

Term Life Insurance is a Smart Move for Young Professionals Starting their Practice. Here’s Why.

Life insurance is an excellent way to protect your loved ones after your passing. However, younger professionals postpone acquiring a life insurance policy more often than not because their death may not seem close. Understandably, thinking about life insurance seems like preparing your estate for your death. However, there are benefits to getting term life insurance as a young professional. Let’s explore why young professionals should consider term life insurance. Ask a Vistaplan advisor for more details today.

Life Insurance Risks

When you apply for life insurance, the policy provider weighs the risk of your likelihood to apply for a claim in the future. Insurance companies are in a business, and in their business, your payouts mean losing money. For a life insurance policy, the ultimate risk is your death. Upon your death, a life insurance policy provider is required to payout your beneficiaries.

Another risk insurance companies consider is the length of time you’re likely to hold a policy. The longer you keep the policy, the more money that your insurance providers earn. The more premiums you pay over the years, the more your insurance company makes. This ultimately means that term life insurance providers want you to live as long as possible.

Term Life Insurance

A term life insurance policy lasts for a given period. For example, your policy may be active for thirty years. There is a likelihood that you won’t die within this period, which means that insurance companies enjoy great revenue for your premiums.

In life insurance, the younger you are, the less likely an insurance company has to pay a claim. This is what an insurance company wants. As such, premiums for term life insurance policies are generally lower for young professionals. As you age, the premiums increase because insurance companies adjust for the risk of death. Remember that your health is also in generally much better shape in your younger years, which makes it easier to qualify for term life insurance.

There are several reasons to choose term life insurance at a young age. Perhaps you have a mortgage, a young family, and a business that you’d like to continue after your passing. Having a life insurance policy means that you leave a cover behind for people to carry on with.

Get Life Insurance in Edmonton Today

In all cases, protecting yourself and your loved ones is the main reason for getting term life insurance as a young professional. It is never too early to take out life insurance. Consult our life insurance brokers for options.


About the Author - David Motkoski

David Motkosk At the Helm of Vistaplan Financial Group

David is a well-respected insurance advisor with over 30 years of experience helping healthcare professionals, business owners, and their families secure their financial futures. He takes the time to make certain his clients understand the life, disability, and health insurance products they are purchasing, so they can make the right choices for their budgets, plans, and futures. CONNECT WITH ME ON LINKEDIN

Life & Disability Insurance for Alberta Health Care Professionals, Business Owners, and Their Families Since 1983