It is a misconception that life insurance is only for the middle aged or those with families. Most young people just beginning careers have probably not given much thought to life insurance. Investing in a life insurance policy at a young age comes with benefits that exceed the more well known one of a death benefit payout. Purchasing life insurance when you are young not only saves money, it’s a good financial investment.

If you’re considering life insurance, there are two types of policies to familiarize yourself with. The first is term life insurance. Term life provides coverage for a designated amount of years (generally ranging from 10 to 30.) If you have a family to support and something happens to you during the period of coverage, your family will be eligible to receive your death benefits (life insurance payout.)

A term life policy is a good choice if you have a family and are looking for a more affordable option, but for the young, whole life insurance may be a better option. Whole life insurance generally has lower premiums but the initial cost of the policy tends to be higher because the coverage period is a great deal longer.

The younger you are and the healthier you are, the less expensive it will be to secure an insurance policy. Purchasing a whole life policy at 23 is a bit like buying your life insurance on sale – you’ll pay significantly less as a 23-year-old then you would even as a 30-year-old.

A whole life policy also has significant benefits that a term life policy does not. Whole life insurance has a cash value accumulation. This is money you can use to go toward some of life’s bigger expenses you’ll likely have down the road: paying off student loans, paying for graduate school, wedding expenses, down payment on a house, sending children off to college, and retirement.

If you have the money to purchase life insurance, securing a whole life insurance policy at a young age will establish a foundation of financial stability. Don’t think of a whole life policy as something static that can only be touched in death. Utilize your policy at the major junctures of your life, and you can have a financial history that will be as healthy as you are.