You’re young, just getting settled in your career. Whether you’re single or married, a mom or childless, you might not even realize you have to think about life insurance yet. But the fact is – you do!
This is actually the best time in your life to invest in life insurance. Because, let’s face it, you get older as each day passes, and the younger you are, the less expensive your policy will be. Also, the healthier you are, the less it will cost. And even if you don’t have a significant other or children right now, if you died tomorrow (unlikely, of course, but humor us for a moment) someone will have to pay for funeral expenses as well as any outstanding debt, so why not be prepared? Granted, a life insurance policy will hopefully be something you never have to use, but it is an investment in your life and offers some peace of mind. Your local agent will guide you through the different types of policies (term, whole or universal life) to help determine which will work best for you.
Need more reasons to get yourself protected? Here they are:
Permanent life insurance builds cash value. That value can be an essential part of your financial future. The cash value of the policy can be used for opportunities (like home buying) or emergencies. And at some point if you want to opt out of the death benefit, the cash value can be used to supplement retirement.
It’s cheaper now
Your health now counts. The younger and healthier you are when you get your policy the more affordable it will be. Not only is the cost a great reason to invest, but future health issues are, too. If health problems do arise down the line, your policy rates will always be based on what your health was at the time the policy was purchased.
You have options
Nothing is set in stone. Things change in life. Once you buy the policy, you have options. You can revisit coverage when life changes occur and look to increase it as your budget, lifestyle and circumstances change.
If you are a young homeowner, your partner or spouse (possibly even your future one) might count on your income for the household finances. Proceeds from a life insurance policy can help cover a mortgage balance or at least a few months of payments to allow for a little more time before deciding on next steps.
Funerals are expensive
Final expenses are something none of us want to think about. So, don’t force your surviving family to worry about having to foot the bill for yours. Life insurance can cover those costs.
Not all employers offer life insurance as a benefit
Fewer employers offer life insurance as part of their benefit packages these days, so getting yourself a personal policy is a good idea in general. If your employer does offer it and you wind up switching jobs, you may not be able to take it with you and qualifying for a policy through another employer could be more expensive. Having your own will be one less issue if you do change jobs.
For more information about life insurance, check out Allstate’s guide to choosing the right policy.