Buy life insurance as a young adult
With the struggle to manage burdensome student loans, balance the cost of mortgages and meet the endless barrage of other living expenses, why should life insurance be a priority for us as young adults?
The answer is simple: it provides invaluable protection for our family’s financial future. We spend so much of our time and energy working to provide the best life for our loved ones, it is critical that we have a plan in place to protect those efforts in our absence.
Many of us are healthy and productive, advancing in our careers, buying homes and starting families.
I can use my own life as an example. We are a single-income household. Life insurance is not optional for us because the death benefit it provides would replace my income in addition to covering my final expenses. Without that benefit, my wife would be unable to afford health care, burdened with our collective student debt and unable to maintain a normal quality of life.
In our situation, her financial future is secured with a combination of affordable term insurance to replace my income. It is supplemented with a smaller, guaranteed policy that will be in place for my entire life to take care of my final expenses.
So why should we purchase life insurance young when we aren’t likely to need it? Because buying it as young adults guarantees coverage that later in life may be unobtainable. If we are able to get it in the future, the cost will rise dramatically as we age. Very few people are healthier in their golden years than they were in their 20s and 30s. Simply put, it’s just good planning.
Each of us has life insurance needs. With the help of a knowledgeable adviser, those needs can be met with the proper amount and type of coverage. A simple process can quickly identify what should be protected, and how best to do so.
I challenge you to look closely at the things of value in your life and consider if they would be sustained in the event of your passing. Most of us don’t have the coverage we need, but fortunately as young adults, now is the easiest and most cost effective time to get it.