- November 27, 2017
- Posted by: oneplacefinancial
- Category: Life Insurance
Think you don’t need life insurance because you’re young? Contrary to popular opinion, life insurance has nothing to do with age. In fact, getting life insurance is a smart financial move for anyone in their ‘20s or ‘30s.
Nowadays, young adults face many financial challenges, including student loan, house loan, and more. In order to protect your financial interests, it’s important to invest in a comprehensive life insurance plan.
Here are five reasons to get life insurance at a young age:
It is affordable
Life insurance premiums depend on different factors, including an applicant’s health and age. Many people believe that they don’t really need life insurance since they are young and healthy. To them, life insurance is an unnecessary and costly expenditure.
However, the younger and healthier you are, the lower will be your life insurance premium. If you buy life insurance at an older age, you will most likely pay a higher premium.
It is better to lock in a good life insurance policy at a lower rate than wait until your ‘40s or ‘50s.
It pays off funeral expenses
The average cost of a funeral is between $7,000 and $10,000. This includes burial service, funeral home expenses, and installation of a headstone. A life insurance policy can be used to pay your funeral expenses.
It covers debt payments
In addition to a funeral, a life insurance policy can pay off your accumulated debts, including student loan, car loan, home loan, etc., in the event of death.
A life insurance policy provides financial protection against unforeseeable events. If you pass away, your family can use the insurance policy to pay off your loans.
You are not satisfied with workplace coverage
Even if your employer provides a life insurance policy, it is smart to buy a separate policy. What if your employer’s insurance policy doesn’t have enough coverage?
The key is to purchase a life insurance policy that caters to your specific needs. If your employer’s coverage is not good enough, there is no harm in buying another policy. A separate policy will prove to be useful if you get terminated or change your job.
You will be protected for life
The purpose of life insurance is to offer financial protection and security against unexpected events. If something happened to you, what would your loved ones do?
Getting life insurance at a younger age will financially protect your family. Life insurance should be a significant part of a young adult’s financial planning.