One common misconception is that a life insurance policy is only necessary for middle-aged or elderly people. The truth is that even young adults can benefit from purchasing a life insurance policy.
Here’s more about why young people need life insurance in today’s day and age.
Lower Premiums
One of the main reasons that young people should buy a life insurance policy is so that they can enjoy lower premiums for the rest of their life. When compared to middle-aged people and the elderly, younger people are less likely to be married or have children. Due to this, some young people don’t see the point of buying a life insurance policy at their age. However, most young people today can expect to have a spouse and children in the future.
In general, the younger you are, the less expensive your premiums for life insurance will be. Therefore, you should buy a life insurance policy now while you’re young so that you can enjoy an inexpensive premium when you have a spouse and children.
Paying Off Student Loans
Even young people who don’t want to start a family of their own can benefit from a life insurance policy. For if they were to pass away, life insurance could be used to cover any debts that they were to owe. If you’re young, chances are, your largest debt is student loans. The average student loan debt in 2017 was about $37,000, according to Debt.org.
All federal student loans, including Parent PLUS loans, are canceled when an individual passes. However, this is not the case for private student loans. A life insurance policy can help pay for any private student loans, which your parents may have cosigned for.
Funeral Or Burial Costs
Finally, a life insurance policy can help cover the costs of a funeral, burial, or cremation. The average funeral in North America costs anywhere from $7,000 to $10,000. The average cost of a direct cremation is about $1,100 in the United States. Unfortunately, after the death of a loved one, many families struggle to cover the final expenses. Therefore, a life insurance policy is a good investment for anyone, no matter their age.
One of the smartest financial decisions a young person can make is buying a life insurance policy. For more information, don’t hesitate to contact us.