Life insurance is designed for the “what ifs” of life and is usually considered later in adulthood when you have the well-being of a spouse or children to think about. It’s not commonly considered by those who are still new to adulthood, fresh out of college, and free of the financial responsibility of supporting another person. However, this is surprisingly the best time to get coverage. Here are a few reasons a young adult should consider life insurance coverage.
- You are young and healthy: Both a person’s age and level of health are major considerations of life insurance coverage. As you get older, life insurance coverage can drop, become more expensive, or just be harder to get coverage based on health. Don’t risk your future or the future of the children or spouse you may have by not getting coverage when you can.
- To cover funeral and burial expenses: Although no one wants to think about the chance of dying, especially dying so young and unexpectedly but the costs of a funeral and burial services (which can easily accumulate over $7,000) can deepen the grief and suffering of the loved ones you leave behind should something ever happen.
- If you have a student loan or other debt: Student loans and personal debt don’t just disappear when you pass away. Creditors are going to want to recover at least some of the money they let you borrow. If your parents co-signed on a private student loan, car purchase, or if you were an authorized user on their credit account, they will be left financially responsible for the debt you leave behind.
- You are responsible for taking care of someone: Whether that person is a significant other who lives with you, a dependent sibling, or a sick and ailing relative, you need to consider how they will be taken care of if you weren’t there. Life insurance provides a way for you to financially provide for your loved ones long after you are gone.
Life insurance, like medical insurance, is there for the “what ifs” of life and helps you provide and take care of those around you so they can focus on their grief, and not on other financial concerns. The best time to purchase life insurance is now, especially if you are a young, healthy, able-bodied adult.