Life insurance protects your family after you pass away and can help them afford funeral costs, replace lost income, or support a college fund. Many people don’t like to think about life insurance. However morbid the topic may feel, it’s important to prepare for every scenario. People of all ages — especially young adults — should obtain a life insurance policy as soon as possible. Here’s why.
Life insurance is more affordable for younger people
Millennials are currently aged 25-39, which means that most have jobs, families, and homes. Yet just over half of millennials have a life insurance policy. Many assume they’re too young to need it, or they prioritize basic expenses (rent, mortgage, food) or experiences (travel, special events). That’s because many millennials entered the workforce during the Great Recession, which led them to prioritize immediate survival needs over long-term planning.
However, most millennials don’t realize how affordable life insurance can be. In fact, the premiums are quite low for people who don’t have pre-existing health conditions. They drop even further if you don’t smoke. For millennials, life insurance is an inexpensive and important investment in your future.
It protects your family in case of catastrophe
Millennials also need to prioritize life insurance precisely because they came of age during difficult economic times. They often don’t have a lot of savings or other assets that could help their family if they were to suddenly pass away. Moreover, they may have credit card debt, and most have student loans, both of which could pass to their spouse or parents if they don’t have life insurance.
Generation X also tends to have lower wealth, and many of them have children who will soon begin college or aging parents who depend on their support. Financial security is crucial for these families, and life insurance is a way to ensure that an untimely death and funeral costs don’t bankrupt the surviving spouse or children.
You may not be able to obtain life insurance when you need it
Most insurers don’t cover people with pre-existing health conditions. By the time you start approaching the point where a life insurance policy might need to be paid out, it’s too late to get it. You’re much more likely to get coverage (and low premiums) when you are healthy.
Think of your health as an opportunity to buy a policy on sale. Insurers are more than happy to cover healthy individuals, so by buying a policy as soon as possible, you can almost guarantee that you’ll get a good deal.
There’s no good reason to wait to purchase a life insurance policy. In addition to the protective benefits, it often comes with tax savings and investment dividends. It can also be used to take care of your business, assets, and other logistics after you pass away. However, good life insurance can be expensive if you wait too long, so get one as soon as you’re able. This is the best way to protect your future — and your family.