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Life insurance has traditionally been associated with the later stages of a person's life. The usual image of a typical life insurance buyer is a person near the retirement age, who wants to save some additional money for their heirs and has accumulated some wealth over their lifetime. However, the reality is a bit different from what you may think. Moreover, there are many reasons to buy life insurance when you're young and it makes more sense to get insured while you don't have much savings or assets. If you find it hard to believe, just consider the following aspects of buying life insurance early:

It's cheaper

First of all, buying life insurance at an early age is much cheaper than when you're old. Insurance companies base their premiums on the person's life expectancy, which revolves around the person's age and overall health condition. It's hard to argue that the life expectancy of a 30-year-old in a good health is much higher than off a 60-year-old with various health problems common at that age. That's why buying life insurance when you're younger is cheaper. In fact, it's cheaper to the point where you will buy it earlier with lower premiums and keep on paying them for 30 years and it will turn out to be cheaper in general than buying it later and paying only for 10 years in a row. Despite the common belief that life insurance is expensive, it can be very affordable if you choose the right policy type and do it while you're young and healthy.

It's more useful

Let's face it, bad things do happen and that's exactly what life insurance is used for. It may be the death of the policyholder due to a tragic event or permanent disability due to a catastrophic illness. As a result, the policyholder's family, friend or relatives are subjected to serious financial turmoil if the person was the main income earner in the household. When this happens at an earlier stage of a person's life it is very likely that there are no extra savings yet and other family member won't be able to cope with such a loss. In contrast, when things like these happen at a later stage, there's usually a savings account in place and other family members usually possess various assets that can cover the financial impact of the policyholder's death or disability. That's why it makes more sense to get life insurance while you're younger while your family and dependents are still relying on you and are very vulnerable to all sorts of financial problems.

It's a good long-term investment

Well, a professional financial advisor may argue with this statement, but it all depends on the goals you set. When buying a whole-life insurance policy it usually includes certain cash accumulation value that increases over years and can be converted to stocks and bonds when necessary. The interest rates are usually not as competitive as for other investment tools, but if you get your policy early enough it can accumulate an enormous value by the time of the payout. As a result you can increase the value of the policy on top of its basic benefits, and use it for financial operations whenever you need it. It's certainly a nice feature for those who want to leave a hefty heritage to their family in case of death.

Self protection insurance is many types, ranging from health insurance, life insurance, accident insurance, even education insurance. The question is whether all forms of this insurance is an investment? Or the insurance is considered as an expense?

As we know, pay for insurance means you spend some money on a regular basis each month. And this spend is usually something that is considered heavy. This is different from the instant spending you do to buy a product. You simply spend money, sometimes even without thinking first. For some people, pay for insurance is something that is reluctant to do.

But if you look closely, actually pay for the insurance has incredible benefits. When you pay for insurance, for example, you pay for health insurance, then your life will automatically guaranteed. If you are sick, you do not need to spend so much money. All is handled by the health insurance provider. Thus your “money stand” will be safe even if there is an emergency health problem to you.

Imagine if you do not have insurance. At some point you have to be hospitalized. Many days you stay in the hospital, and it would cost quite a bit. Where do you have to pay? Of course you would take your money stand that you think as "investment". The money that you save for years discharged only for the cost of your care. And once you're out from the hospital, you do not have anything else. Your money runs out.

But if you insure yourself, I'm sure your money stand will be intact. It is because all of your hospital costs are covered. It's all thanks to the small amount of funds that you pay to the insurance company regularly every month. When you are out of the hospital, you will not be shocked because of money. Your saving money is not interfered.

Because of the above reasons, I consider that insurance is an investment. Investment here does not mean that you will get a lot of money in the future, but you will be healthier financial future because of insurance. You can do anything with your money with no need to fear a lack of money in case of emergencies.