One of the last things on your mind when you’re a young adult is life insurance. You’re probably focusing on many other expenses and it can be tough to justify another personal expense.
Does life insurance make sense for you? Below I’ll discuss reasons why it may be a good time to look into your life insurance options.
- Family Depends on Your Income
Will your family be stable financially without your income? Your spouse, children, parents, or others may be counting on you to help pay for expenses. If people are depending on your ability to earn an income, it probably makes sense to have a life insurance policy. - Cheaper While You Are Young
Term life insurance can be surprisingly affordable for young adults. Your rates will be locked in at the price you pay today. So if you purchase a 20 year term policy at age 35, you will be locked in at your current rate for the duration of your policy. The younger and healthier you are the cheaper your rate will be. - You Have Debt
It could be possible you have student debt, mortgage, or other types of debt. If you have life insurance, you can leave enough money to pay your outstanding balances in full. Some debt is forgiven upon death and it’s worth checking to see if you’re eligible. For example, federal student loans are forgiven upon death, but private loans may not be. - Stable Income
When you’re young you have a lot of new responsibilities. You may be changing jobs, paying debt, moving to a new city, or facing other new changes. Normally in your 30s you tend to have more stability in your life and career. This should make it easier to budget for a new expense like life insurance. - Retirement is Far Away
In your 30s you are still in the early stages of retirement savings. You have limited assets saved should your life end unexpectedly. With limited assets, it can be a greater financial burden for your family to cover the lost income. - Peace of Mind
No one can truly predict the future. But knowing your loved ones will be taken care of financially should bring you some peace of mind. Even a small policy can go a long way to help relieve the financial burden of losing a family member.
If you are convinced life insurance may be something to look into, reach out to me at 847-550-6100 or george@pmgwealth.com and I can help you explore your options.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
