“Fun is like life insurance; the older you get, the more it costs.”
The majority of young people today put the idea of life insurance on the back burner. It is not at the top of their “Must Have” list. Why is that??? Maybe it’s because of a budget they have set. To young professional in their 20s or 30s, saving for a vacation seems much more important than setting money aside each month for a life insurance policy. However, as a young professional, setting money aside each month for a life insurance policy while you ARE young is not near as expensive as you may think it is (given you are in relatively good health).
Let us touch on 4 reasons why you should consider buying life insurance while you are young:
Just like the quote at the beginning of the post says, “the older you get, the more it costs.” This applies to both age and health. It is very rare for a person to be healthier in their 50s & 60s than they were in their 20s & 30s. Does it happen though?....Of course! but for the insurance company, they operate on statistics and facts. So, maybe one day everything will change and people will begin to have better health in their 50s & 60s leading to lower life insurance rates….I highly doubt it, though.
I will use myself as an example. I am a male, 23 years of age, and I do not use tobacco products of any form. I am seeking $500,000 worth of coverage. Given those facts, a 20-year level term policy with guaranteed renewability at the end of the 20 years would cost me $29.67 a month. If $500,000 seems like too much, then for $250,000 worth of coverage I would be looking at $18.06 a month. That’s pretty cheap! Obviously, the price will continue to decrease as the coverage amount decreases. If by chance you were looking for the same policy as a 43-year-old male, $250,000 would cost you $42.99 a month.
FYI, in a term policy, if the term is 20 years, then that rate will stay the same for all 20 years of the policy regardless of how bad your health may get.
This sections applies to both married individuals, with or without children, and also single young professionals.
If you are married, then stop and think for a second about what your significant other would do if something happened and you were no longer around??? The lack of your income could cause a significant financial burden on the other partner. If children are involved, those children need to have clothes, food, an education, etc., all of which can add up to a significant amount of money. As your child begins to grow up, major life events and emergencies will come up. If you are not there, then the life policy you purchased could help your spouse when these circumstances arise. You say your family is the most important thing in the world, then why not ensure their financial protection in the event of your death?
Maybe you aren’t married with children. If that’s the case, then think about the other members of your family that rely on your income. These people could be your parents, siblings, or cousins. Once you are gone, the debt you owe to others will now be someone else’s responsibility. Do not let your debt be a burden to others in the event something happens to you. The concept of using life insurance to protect your family is not only a “physical” protection but a financial protection.
Pay Off Debts
I touched briefly on using life insurance to pay off your debts to protect your family financially in the previous section, but paying off your debts is a reason to buy life insurance on its own. In today’s world, many young people are up to their necks in debt. This can come from car payments, rent, mortgage payments, or especially student loan debts. I’ve said it once before, and I will say it again,
“Once you are gone, someone is responsible for your debts!”
Think long and hard about that statement and its importance. Consider your family or whoever else is important to you. Do right by them by eliminating your debts
Funerals are one thing that no one likes. Especially the family of the person that was lost. Allow your family time to cope with your death instead of worrying how they are going to pay for it. Funerals are expensive. It helps to have a policy in place that will cover all the expenses when that time comes. If this is something that you do not currently have in place, but would like to, a whole life policy may be the right option for you.
In conclusion, being young is the perfect time to purchase a life insurance policy. There are many different reasons that warrant the ownership of a term or whole life policy. Take each of these, along with your own concerns into consideration, formulate a plan, and then have a talk with your agent.
Thanks for reading,