One of the most common mistakes that young adults make is declining the purchase of life insurance simply because they don’t have a family yet. Early adulthood is a beneficial time to purchase life insurance. Here are 4 reasons why.
1. It may be cheaper to buy a policy when you’re young and healthy
Generally speaking, it’s more common for a younger person to be in better health than a middle aged person. If you are in good health, you are considered less of a risk to insurance companies. Lower risk = lower cost in most cases.
2. You have dependents
Dependents don’t necessarily have to be children. For insurance purposes, dependents are people who rely on your income. This could be a spouse or a live-in boyfriend/girlfriend with whom you own a house.
3. Your policy may have a savings component
If you purchase a policy with a savings component, you can borrow against it as well as use it in retirement, depending on the policy and company behind it.
4. Cover your funeral expenses and debts
Even if no one depends on your income, you should consider your debts and your burial expenses. The average funeral alone in the United States costs between $8,000 and $10,000. Some debts would be waived with your death while others would be collected through whatever assets you left. Who will cover these debts when you are no longer around?
It’s never too early to purchase a basic life insurance policy. If you’re interested in receiving a quote from one of our life insurance specialists, give us a call at (516) 431-9100.