William Penn Life, 2011 (46. évfolyam, 1-12. szám)
2011-01-01 / 1. szám
LIFE 401 LIFE 301 LIFE 201 LIFE 101 SENIORS ESTABLISHED FAMILIES YOUNG FAMILIES YOUNG ADULTS Moneywise INSURE U Get Smart About Insurance A 4-Part Series Presented by the National Association of Insurance Commissioners - www.insureonline.org Life Insurance Tips & Information for Young Adults AS A YOUNG ADULT, you may be without parental support for the first time. You may be away from home as a student or an employee. It is important to understand the long-term and financial implications left by the insurance decisions you make today. There are differing opinions about the importance of purchasing life insurance as a young single since you are unlikely to support individuals whose livelihood is dependent upon your income. While buying a policy early in your life will provide you with better deals and potentially guarantee your insurability, some experts doubt that individuals need life insurance at a young age when they typically don't have dependents. As a young single, you should consider your options and make a choice based on your finances, health and other circumstances. It always makes sense to start thinking about life insurance early-on so that you can make the most educated decision. When choosing a life insurance product, permanent and term policies are the two major options. If you are a young professional, earning a good salary, able to afford higher premiums and looking for a savings component, you might want to invest in permanent insurance, such as a whole life policy, which builds cash value and also pays a death benefit. On the other hand, a term life policy, which offers death benefit protection for a specified time period, is a less expensive option for young people who are still working out their finances and just want to leave something for their loved ones in the event of their death. Term life is typically less expensive in your younger years than permanent life insurance, which covers you for your entire life and typically has level premiums. If you can't afford whole life insurance right now, but think you may want it in the future, you may want to consider term life insurance with a conversion option that will let you change to a whole life policy for a fee when you are ready. If you are in the military, consider Serviceman's Group Life Insurance (SGLI) - a program of low-cost group term life insurance automatically available to all military members. This policy is automatically Photo (c) Andres Rodriguez/Dreamstime.com activated unless the service member opts out. If you have decided to purchase additional life insurance outside of the SGLI, review the list of exclusions to the policies, and make sure that the benefits will be payable even if the death is a result of war, the action of a military force or traveling on a non-commercial aircraft. Individuals who sell life insurance at military installations are required to obtain authorization from the Department of Defense, so ask to see the agent's permit or license. The cost of life insurance is affected by multiple factors that you should understand. However, some are not easily in your control, such as pre-existing or chronic health problems like diabetes, heart disease or cancer. But others are more behavioral in nature and, therefore, within your power, such as... * Poor health habits, such as smoking and excessive drinking. * Your driving record, in terms of accidents, Driving While Intoxicated citations, tickets and claims. The better your driving record, the better the rates you'll receive for your life insurance. * Engaging in dangerous hobbies, such as skydiving or rock climbing. The insurance business is all about assessing risk. If you participate in high-risk activities or exhibit highrisk behaviors, insurers will treat you as a high-risk customer. They may charge you higher premiums or deny you coverage. □-1 6 0 January 2011 0 William Penn Life
