Why millennials (and everyone) should consider life insurance
Still on the fence about life insurance? Check out these five rock-solid reasons why it should be on your radar.
1. People rely on you
Sure, you might not have little ones running around (or plan to anytime soon) but think about it: people depend on you. Even without kids, you probably have loved ones who rely on your support.
- Thinking about starting a family soon? Life insurance can replace your income, offering financial security for your partner and helping with future education costs.
- Living a cozy life with your significant other in your own house? Consider what happens if you're suddenly not there—can they afford to stay in your home? Can they afford to help take care of any pets you have?
Even if you're flying solo, someone will have to pick up the tab for debts or funeral expenses when you're gone. A life insurance policy can ease that burden.
2. More affordable when you're young
The cost of life insurance is a bit like fine wine—it gets pricier with age. When you're a healthy, young person, insurance companies see you as a lower risk. Translation: You can snag a budget-friendly policy.
Non-smoker? Minimal health issues? You might be surprised at just how pocket-friendy a life insurance policy can be compared to waiting until your golden years.
3. Consider your cosigners
If you've got loans, credit cards, or even a mortgage with cosigners, here's the deal: if you're no longer around, they could be on the hook for your remaining debts.
A life insurance policy can be a lifeline for them. Let's say your parents co-signed your credit card, and they're your beneficiaries. They'll receive your death benefit, which can help pay off that credit card debt when you pass. Without it, they might end up with a debt headache that could ding their credit score or derail their retirement.
4. Covering funeral expenses
Even if you don't leave dependents or debts behind, there's the serious matter of your final expenses. Funerals aren't cheap—average cost?A cool $10,000 and then some.
Your loved ones, whether it's your parents, siblings, or someone else close, will have to foot the bill. A life insurance policy, even a small one designed to cover burial costs (typically with a super-affordable monthly premium), can be a financial savior.
5. You may need to supplement the insurance provided by your employer
Got a sweet gig with cool benefits? Awesome! But don't assume it's all you need in terms of life insurance. Many employer-sponsored plans offer basic group insurance, which may not cut it.
If you're the breadwinner for your family, you'll likely require more coverage than your workplace offers to meet your family's financial needs. Also keep in mind that your workplace policy will not follow you if you switch jobs. Leaving your current gig for a new one could leave you high and dry until you secure new coverage.
So there you have it - life insurance isn't just for the older crowd. It's a smart move for those who want to protect their loved ones, enjoy affordable rates, support co-signers, cover final expenses, and supplement workplace benefits.
If you need to dive deeper into the world of life insurance or explore different coverage options, check out our life insurance calculator to estimate your needs. We've got your back and look forward to answering your questions!