The Importance of Life Insurance
Many people aren’t thinking about getting life insurance in their 20s or even in their early 30s, but it may be the best time to get it. Now many different factors will determine your life insurance costs. Generally, the younger and healthier you are when getting it, the cheaper the policy will be.
On average, a nonsmoker male or female in their 20s or early 30s can expect to pay anywhere from $10 to $50 a month for a standard term life policy. The premium will depend on the coverage amount. If anything, that’s less than what you’ll pay for a gym membership but offers your family financial stability in the unlikely event something happens to you.
If you don’t have life insurance, below are 5 reasons you should consider getting it today.
You Are Financially Supporting Old Parents
When you have someone like your parents relying on your income, then you need insurance for sure. Many people only think about protecting their children and spouse, but around 6.2 million millennials care for their grandparents, in-laws, and parents. When you have a life insurance policy, you can be assured that they will be left with finances if something happens to you.
You Have Debt to Pay Off
When choosing a coverage amount for the insurance policy, experts recommend that you include the total debt amount that needs to be paid off. That way, whoever receives the money from the policy in the event of your untimely death can pay off all outstanding balances.
While federal student loans are not payable after death, but all private loans still need to be paid. So, make sure that your life insurance covers it.
If you own a small business, then life insurance can be incredibly beneficial. A Key Person life insurance policy, ensures that your employees and key stakeholders are paid if something happens to you.
The interesting thing about a life insurance policy is that it can also be used as collateral to get a small business loan. That way, in the event of your death, the lender is assured that your policy will cover their costs.
You Are About to Get Married
If you are, then your spouse will soon be relying on your income. That’s another reason to get life insurance. Whether your spouse continues to work or not, having life insurance protects your family from the sudden financial instability that may come from your death.
A Person with Extreme Hobbies
If you are a thrill seeker and engage in extreme sports, you will be deemed as a high-risk person by the insurance company. However, this is similar to someone who works a high-risk job. While you will pay more for insurance, but it is worth it.
Extreme sports include but aren’t limited to scuba diving, rock climbing, or something similar. Anyone who engages in these sports should have life insurance to protect their family from the sudden financial burden of their death.