Who needs life insurance? Policies are usually marketed to people who support families, run businesses, or plan to retire in the near future. If you’re a 20-something in the “prime of your life,” you’re probably wondering how life insurance could possibly apply to you.
What you may not realize is that 40% of Millennials show some level of interest in a life insurance policy. The truth is that young and healthy individuals can actually lock in the lowest possible life insurance rates so that they are covered at minimal cost for the rest of their lives. Here are three reasons a young person like yourself might benefit from life insurance.
Funeral Expenses
No matter how young or old you are, dying can be expensive. Funeral costs can leave your family with a bill of $10,000 or more, and unless you’ve got an offshore bank account dedicated to your own demise, coming up with this kind of money can be a challenge. To protect your loved ones from taking a big financial hit during what will probably one of the most emotionally challenging times of their lives, set up a life insurance policy to cover any and all funeral expenses.
Student Loans
One of the greatest expenses Millennials face today is the cost of higher education. Graduates of the class of 2016 came out with an average of over $37,000 each in outstanding student loans. That is debt that won’t be paid off for years or even decades. Federal loans are forgiven if the borrow dies before paying them off; however, debt from private loans are automatically transferred to any cosigners of the policy. Life insurance plans can make sure that your loans are covered after you die so that your family won’t be stuck paying for a degree that you may or may not have had the opportunity to use.
Charitable Donations
If you’re debt-free and are sitting on a massive savings account, you might be wondering why a life insurance policy would ever be necessary. After all, you have enough money to take care of your loved ones for the foreseeable future. Have you ever considered, though, that a life insurance policy can do more than cover expenses for the people closest to you? Recently, it’s become more and more popular to take out a policy for the sole purpose of leaving a gift of charity after your death. If there is a cause you care about, you can take out a policy that will make an enormous contribution to the organization of your choosing.
Ultimately, you may not think you need life insurance right now, especially if you’re not supporting any dependents. However, you have to remember that life insurance is an investment in the future (yours and that of any children or family who may rely on you down the road). It’s never too early to consider life insurance.
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