When you’re in college or just entering the workforce, life insurance is certainly not the first thing on your mind. However, as the years go by, the idea of buying life insurance becomes more and more plausible, until one day, you realize it’s downright silly not to have it.
But when is that day?
The entire purpose of life insurance is to make sure that your loved ones are taken care of in the event that something happens to you. This can include a large death benefit, money to pay off debt, or simply enough to cover funeral expenses. Whatever the amount is, life insurance is designed to ease the financial burden of your loved ones.
However, just because you’re not married or don’t have kids doesn’t mean that life insurance isn’t for you.
Why Buying Life Insurance Young Is Worthwhile
Whether you get term life insurance or permanent life insurance, you will need to pay a monthly fee, or premium, which ensures that your loved ones will get a death benefit in case you die. However, these monthly premiums go up as you get older and/or if you develop health issues or illnesses. Therefore, purchasing life insurance when you’re young is ideal, even if you don’t have a partner or children — yet. When you purchase when you’re young, you lock in low rates, so that even as you get older and potentially develop health issues, you’ll still pay the low rates you did when you signed up.
If, however, like many, you didn’t get life insurance coverage in your mid-20s, there are plenty of other opportunities to do so.
Situations in Which Life Insurance Will Come In Handy
You’re single: Many people think that life insurance is only necessary if you have children, but the fact is that it can be useful in many different situations. If you are single but taking care of an elderly parent, life insurance will be there to save the day if something happens to you. If you are single and have siblings, they too can benefit from life insurance in the event of a disaster.
You’re married without children: If you are newly married but don’t have children yet, life insurance is also a good option. First, because you may have children in the future, and locking in low rates will save you money in the long-run. Second, your spouse or partner certainly wouldn’t want to suddenly feel the entire financial burden upon themselves should you die unexpectedly.
You have children: One of the most common reasons for buying life insurance is if you are planning on starting a family or just had your first child. Similarly, if you already have children who are a little older but haven’t yet purchased life insurance, there is no time like the present. Just because you didn’t purchase it when your first child was born does not mean you missed the boat.
You are a business owner: Another reason people buy life insurance is when they own a business. Many banks won’t grant loans without life insurance, and business partners also feel calmer when each one has a life insurance policy. In the case of a loan, when time is usually of the essence, getting no exam life insurance is a quick, expedient way to get the coverage you need. No exam life insurance doesn’t require a medical exam and doesn’t dig deep into your medical history, which makes the approval process much quicker. (You can find out more about it here.)
In the case of coverage for your business partner, this is usually a specific type of loan, like a buy-sell agreement or key person life insurance. If you have a family, you may want two separate policies so that both your business partner and family are both taken care of.
You have debt: Finally, another reason for purchasing life insurance is to cover any debts you have. Unfortunately, debts can accrue at any age, and if you die without having paid them off, they pass on to your loved ones. If your loved ones don’t have the money, your assets can be sold, creating a very unpleasant situation.
Finding Affordable Life Insurance
While there are plenty of common situations in which people want to, and should, buy life insurance, there is one main reason why many don’t. That reason? Affordability. Many people view life insurance as an extra expense that they simply can’t afford.
However, while this reason used to hold more weight in the past, today that is not the case. In the past, there were very few options and potential buyers had to take whatever options they were offered. Today, there are many life insurance companies, which means you can shop around until you get the rate that fits your needs and budget.
If you’re not sure exactly how to shop around for the best rate, you don’t need to worry about that either. Insurance aggregators like Sproutt can find the best rates for you. Just put in your information and let them do the rest. The cost is zero and there are insurance advisors on hand to help you make the best decisions.
Today, when life insurance can save the day in so many different situations, there is no reason to wait another day.