Even though life insurance is a critical component of financial planning for most people, young adults often tend to neglect this purchase and figure that they will purchase it later when there are clear needs for income replacement. For example, many individuals start to consider life insurance when they get married or at the birth of their first child. Certainly, these are situations where people take stock of all they have in life and are determined to develop plans to protect it. Even if you’re not quite there yet, life insurance is important. Getting life insurance at a young age is a great way to protect yourself and your beneficiaries while locking in the lowest life insurance rates available.
Mortality – Out of Sight, Out of Mind
For most people in their 20s and 30s, mortality simply isn’t something they think about. There are specific reasons to use life insurance to guard you against the unexpected. Sadly, most people reading this article have probably experienced the loss of a friend or family member far earlier than they were expecting. These kinds of unexpected events scheduled us to think about her own mortality, especially when the individual who passes away had a spouse or children who were supported by that individual’s income. Whether you have dependents or not, life insurance is a necessary purchase. Of course, the hope is that you will never need to activate a term life insurance policy. Hopefully, you will live many years beyond the length of your term policy (and at that point, you should have converted to a universal or whole life policy anyways). Life insurance else to reduce the risk faced by you or any beneficiaries if something does happen to you.
Affordable Protection
Some people believe that life insurance is simply too expensive to be purchased in their younger years. This is actually the complete opposite of the truth. Since life insurance companies use mortality rates to determine the premiums that you will pay, younger individuals are actually the most likely to get affordable coverage. Some people will pay as low as $10 or $20 a month to lock in a moderate life insurance protection policy. The majority of people in these younger age ranges will opt for a term life insurance policy. Term life insurance will provide protection over a specific period of time. For most people, this is 10 years, 20 years, or 30 years. Since the life insurance carrier knows exactly how long you’ll pay your premiums, this is the most cost-effective form of life insurance. There are several situations where younger individuals should absolutely lock in coverage.
Situation 1: Spouse Depends On Your Income
If you are in your 20s or 30s and have a spouse who is supported by your income, life insurance is in important purchase. Especially if you have just purchased a new home, life insurance can be the cornerstone of protecting that mortgage. Imagine if something happened to you and your spouse was no longer able to keep the mortgage payments. Although you may have established that this was your dream home for you and your spouse and any dependents, this home could be lost if your spouse was unable to make the mortgage payments after you passed away. For this reason, many people purchase a term life insurance policy with a face amount that incorporates their existing mortgage. If you purchase a period with a term length that matches your mortgage, like 30 years, will have the peace of mind that your spousal be able to pay off the mortgage if you were to pass away. At the end of this 30 year period, it’s not likely that you’ll have the same financial needs, which is why a term life insurance policy that expires around the same general time as your mortgage is paid off is a wise purchase.
Situation #2: Your Parents Are Partially Or Fully Supported By Your Income
If you provide financial support to your parents, siblings, or other family members, the loss of that financial support could have devastating consequences for them. If you are the primary person contributing to their financial support, you need to purchase life insurance just like you would for your own family. Consider their needs and your monthly or annual contribution towards their lifestyle in the calculation of how much insurance you need to acquire.
Situation #3: You Want Your Spouse To Be Able To Afford Funeral Costs
The loss of a spouse can be emotionally crippling. It’s unlikely that you would want your spouse to suffer financially in the short-term, especially when it comes to the burial and funeral costs associated with your death. You can purchase a small life insurance policy to allow your spouse to get back on his or her feet and pay the basic burial expenses, giving you the peace of mind that your spouse will have appropriate time to grieve without feeling financial pressure.
Situation #4: You’re In Good Health
Sure, you’re thinking “I’m young, I’m in good health- why on earth would I need life insurance?”. If you can afford to buy a life insurance policy, this is the best scenario for purchasing. The reason is because your young and healthy status signals to the life insurance company that you are unlikely to pass away. For this reason, your premiums will be very affordable. If you were to develop a health condition over time, you’d also know that you are protected by purchasing a policy before you developed that issue.
If you have any questions please call us at 888-492-1967 or Compare Term Life Insurance Quotes Online.
