Whether you’re a young adult or the parent of one, you may be wondering if it’s even necessary for them to get their own life insurance policy. While it may seem like the answer would be “no” if they’re living with you, a few other important factors could make a difference if you consider the long-term opportunities.
Getting life insurance as a young adult can be a tricky question. Most don’t believe that it’s necessary for the following reasons:
Even if you are only in your 20s and without a family, there are still many important reasons to consider purchasing your own separate life insurance policy.
If you’re not already covered by a workplace group insurance or a rider on your parent’s policy, you’ll definitely want to get one for final expenses. Though it’s not fun to think about (especially at a young age), none of us are immortal and we never know when something tragic could happen.
Depending on where you live, the average funeral cost in the U.S. is between $6,971 to $7,848. On top of that, there may also be out-of-pocket medical expenses related to your potential death.
Even with good health insurance, time spent in the hospital before your passing could lead to hefty medical bills. Neither of these expenses is something you’d want to burden your loved ones with, which is why coverage is important.
Though most people tend to think of life insurance as something they need later in life, ironically, the best time to get it is now – while you’re young and healthy. People in peak medical conditions will qualify for the best possible rates, allowing them to lock into the lowest available premiums for decades to come.
If you haven’t already, go online and start comparing life insurance quotes. If you adjust your age on the quote by 10 or 20 years, you’ll notice how much cheaper your policy could be if you locked in today at your current age and health status.
If you opt for a permanent life insurance policy, it will come with cash value. Cash value is like a savings account that grows within the life insurance policy. This can be used to pay for future premiums or to leverage other financial purposes.
When it comes to cash-value life insurance policies, the sooner you start, the better. Just like an investment account can grow over time, permanent life insurance policies with cash value will accumulate more value and have better chances for growth. Your 20s are an ideal time to start.
Even though it may seem like a young adult still living at home doesn’t need their own life insurance policy, getting one is still a good idea. From funeral expenses to locking in at the best rates, there are plenty of good reasons why it makes sense to purchase a policy as soon as possible.
Those who opt for a permanent life insurance policy can use their youth to their advantage to grow their cash value and create future financial opportunities for themselves.
Source: https://www.bankrate.com/insurance/life-insurance/average-funeral-cost/