Life Insurance Is for the Young
The younger generation of millennials is facing foreboding financial woes in their lifetime. Many do not have established savings or retirement accounts, and several others fail to plan for the future or the unpredictability of life.
Despite its somewhat morbid underpinnings, life insurance is a practical and necessary part of life. Unfortunately, many people do not consider a policy until they are in their 40s or early 50s, meaning they get stuck with higher than average premiums for less coverage than a younger adult.
Young Adults Save Money
There is no better cliche than the early bird gets the worm when it comes to life insurance. Young adults, those in their 20s and early 30s, can get some of the best rates on life insurance policies, often dollars per week. The problem is many young people do not see a need for a life insurance policy, especially if they do not have dependents.
You can get a life insurance policy without a spouse or dependents. In fact, it can be more beneficial to find a policy before a family because you can develop a healthy financial foundation. The older you get and the more responsibilities you take on, the harder it becomes to find financial flexibility. By investing in a term life insurance policy early, you can set aside the necessary funds before developing other obligations.
Discrepancies in Policy Valuation and Reality
Some younger people have life insurance policies, but these policies are not adequate to cover a sudden unexpected death of a breadwinner. According to New York Life’s recent gap survey, millennials only have enough life insurance to cover 22% of family financial needs in the event they die.
By investing in only a quarter or less of what is needed, you guarantee financial hardship for those you leave behind. While you might not have a family yet, acquiring adequate life insurance now means you are prepared for future events and realities.
Flexible and Adaptable to Life Changes
Even if you do not want complete coverage because of your current lifestyle, it is better to have something rather than nothing. It is possible to start with a term life plan and upgrade in the future. In some instances, starting smaller and earlier can lead to better rates when you decide to upgrade. However, to get a more thorough understanding of life insurance rates, qualifications, and needs, you should talk to a licensed insurance agent.
As with the writing of a will or organization of an estate, life insurance is somewhat morbid. No one likes to think about a time when they won’t be here, regardless of ideological beliefs. However, taking the time now to make these challenging and uncomfortable decisions means you will have more time to enjoy the rest of your life, knowing you have done all you can to protect your future and family.
Do you have a life insurance policy, or do you have a younger family member who does? Leave a comment describing your decision and why you thought it was necessary. If you do not have life insurance, leave a comment about why you don’t and whether you want it or will avoid it and why. By leaving comments, you help to ensure Wise Ol’ Crow remains an active community.