Today, I’m going to explain the negative impacts of starting a life insurance policy too late. The cost of nearly any type of life insurance is based on two factors; your age at issue and your health. You will never be younger than you are today and most of us will never be healthier. Rates for both temporary (term) life insurance and permanent (cash value) life insurance go up as you grow older and if your health declines.
One type of cash value life insurance, Indexed Universal Life, makes waiting an even greater problem. This type of life insurance is becoming more popular because it benefits both the insurer and the beneficiaries. The cash value can be used for retirement, college tuition and other large life events. The death benefit, of course, benefits the beneficiary.
Albert Einstein once stated that “Compound Interest” is the strongest force in the universe. He explained that the length of time your money is working for you, compounding, the greater the return. The following example illustrates a comparison of buying an Indexed Universal Life insurance policy now versus waiting five years to buy it.
For a complimentary financial or life insurance consultation, please contact me at 909-714-1830 or at firstname.lastname@example.org.