Life insurance provides financial security for your beneficiaries after you die. In exchange for a reasonable fee each month (cheaper if paid annually), you can rest assured knowing that your loved ones will receive a lump sum of money in your absence.
The benefits of life insurance are significant and multiple and most financial advisers recommend that adults have some level of coverage, regardless of the policy type.
Yet many younger American adults don’t have the right amount of life insurance. According to LIMRA, “nearly half (47%) of millennials (34 million adults) say they need (or need more) life insurance.”
That is a gap that can hopefully be closed with more awareness and information because, while life insurance is beneficial for policyholders of all ages, there are some particular benefits younger adults should take advantage of.
If you’re in the market for life insurance or want to boost the coverage you already have then get started today with a free quote.
Why young people should buy life insurance
Here are three reasons why younger adults should buy life insurance now.
This one seems obvious but many people don’t take advantage early enough. The younger you are, the safer a bet you are to insurance companies. So you’ll pay a lot less than you would if you were older.
In fact, healthy young adults can often snag a term life insurance policy for under $50 a month (maybe cheaper depending on a range of eligibility factors).
Life insurance will only grow more expensive as you age. If you want cheap life insurance then start paying now – not later. Speak with a life insurance professional today to get started with a plan.
Circumvent health issues
Younger people, on the whole, have fewer health issues than older adults. Because of this, they will generally pay a lower premium than older people with known health conditions like high cholesterol, blood pressure or diabetes.
This is another reason why younger adults should get a policy now. If they wait – and health issues arise with age – they will be forced to pay more for coverage. So it behooves them to take a medical exam and prove their health status now. And if any health issues do arise in the future they’ll be grandfathered in at the lower rate.
Pay down debt
If you’re a millennial without any debt then you should congratulate yourself – you’re in the minority.
“Nearly three-fourths of U.S. millennials (72%) have some form of non-mortgage debt, with the average millennial owing $117,000,” according to a recent study from Real Estate Witch.
How are those debts going to be paid off should you die prematurely? You don’t want to burden family or friends with bills. But if you have a robust life insurance policy in place your beneficiaries can use the payout to eliminate your debts.
Not sure how much you’d need to cover what you owe? Speak with a life insurance expert today who can get you started with a plan.
The bottom line
Age should not be viewed as a disqualification when it comes to purchasing life insurance. There are policies available for all age ranges that will both protect you and your bank account.
If you’re a young adult who wants to explore their life insurance options then get a quote today or use the table below to start your research.