For young, single people, having life insurance can seem like an unnecessary waste of extra income. Without a family to provide for or a lack of assets, securing a life insurance policy gets moved down one’s list of priorities, if it makes the list at all.
Believe it or not, young, single people should have life insurance coverage, just like middle-aged couples with kids. The coverage may be lower, but the importance is just as high. Here’s why you should get life insurance now.
Funeral and Burial Expenses
At a bare minimum, a life insurance policy will cover your burial expenses. Hopefully, the claim will never have to be paid out in your young life. However, accidents and tragedies happen every day and having proper coverage prevents your parents and family members from having to foot the bill for your burial.
Funerals can cost tens of thousands of dollars, and grieving families are usually so bereft that they are willing to pay anything to honor their lost loved ones. Having a basic life insurance policy or funeral insurance can assist the ones you leave behind.
More Expensive in the Future
When you’re young, life insurance is usually substantially cheaper than when you are older. If you get a long-term policy with pricing locked in now, you’ll ultimately save money when your life situation changes, and you have more assets to protect. Getting married and having a family might seem like a long way off now, but the years have a way of sneaking up on you.
It’s easier to make adaptations to a current policy than start a new one. If you foresee any changes being made due to a developing relationship, contact a licensed life insurance agent to discuss your future needs.
While you may not have a mortgage to contend with yet, chances are you still have debts. Whether you have school loans or credit card debt, someone foots the bill when you are gone. That is, unless you have specific insurance on your loans that covers death, your loved ones will be responsible for paying off anything that isn’t covered. Having life insurance prevents this from happening.
Supplemental Insurance Coverage
Life insurance isn’t all about coverage in the event of your death. On the contrary, you can add on supplemental insurance that benefits you should something else go wrong. For example, some policies will cover your income lost over an extended period of time if you are in an accident or become disabled. This type of payout won’t be the Hollywood version of an inheritance, but it will cover your expenses and prevent you from going further into debt if you can’t work.
Similarly, certain policies will cover you if you become ill. Like with disability policies, they will cover your living expenses while you are unable to work. Additionally, many of the policies will cover your medical expenses, especially in the case of terminal illness. While incidents of these debilitating illnesses in younger populations is rare, it happens every day.
Protect Against the Unknown
With all the considerations listed above, you may still be of the mindset that these things could never happen to you. Unfortunately, many deaths in younger populations come from unknown medical conditions, hereditary conditions or accidents. The truth is, you never know what could happen. Young athletes die every day due to undetected heart defects. Drunk drivers run red lights. You’re born into a family with the Alzheimer’s gene, and whether you have it or not could be the luck of the draw.
Life insurance protects our assets and loved ones from the unknown. It helps alleviate some stress in the face of a tragedy. You don’t buy life insurance for yourself; you do it for those you’re leaving behind.