If you’re in your 20s or 30s, the last thing on your mind is life insurance. Either your job automatically provides you coverage, or you don’t want to take on the extra monthly expense. However, the younger you are, the cheaper life insurance costs. As you age, your health inevitably declines, and the cost of life insurance increases
The average cost of $250,000 term life insurance for a 25-year-old female is $18.59 per month. On the other hand, that same insurance policy costs $60.68 per month for a woman that’s in her 50s. If you lock in a lower premium at a young age, you could end up paying the same amount in the long run as someone who got coverage in their 40s or 50s.
Whether you’re just starting your career or reaching your peak, seven key reasons will make you reconsider your need for life insurance and understand why life insurance is important.
1. You Want to Tie the Knot in The Future
Life insurance is vital for soon-to-be-married couples that have children from prior marriages. Many couples get joint life insurance, which pays out if both the husband or wife dies or if one of the two dies. Joint coverage only pays one time – after the first death in the marriage.
2. Your Parents Depends on You Financially
In the United States and Canada alone, millions of parents depend on the financial support of their children. Elderly individuals are typically on a fixed income and are not in the best position to tackle unforeseen financial hurdles.
Naming your parents as beneficiaries in a life insurance policy helps them maintain their lifestyle without making sacrifices. The funds they receive from whole or term life coverage also enable them to pay for your end-of-life expenses.
3. You’re a Daredevil
Adventurous individuals tend to partake in riskier activities – parasailing, skydiving, mountain climbing, and bungee jumping. Although these hobbies give you that sought-after adrenaline rush, they also increase your likelihood of dying.
When you open a life insurance policy, you’ll need to disclose your audacious lifestyle to the insurance carrier. Unfortunately, the company will deem you a liability and charge you higher premiums. However, the higher price is worth it, especially if something ever happens to you during a daring stunt.
4. You’re a Parent that’s Building up a Financial Security
As a parent, the number one thing you want is to provide a bright future for your children. You can name your children as beneficiaries in your life insurance policy. If you pass away unexpectedly, your kids can use the proceeds to pay for living expenses and college.
5. The Work You Do is Dangerous
If you’re a pilot, truck driver, or police officer, you are more likely to die while on the job. Thus, it’s essential to have life insurance to support those that you will leave behind. Just as daredevils, those in a dangerous profession should maintain a forward-thinking mindset and consider the worst-case scenarios and understand why life insurance is important.
6. You’re Still Paying Student Debt
While the U.S. government cancels the debt of deceased borrowers who went to public schools, they do not cancel private student loans. If you attended a private university and are still paying debt, the debt would remain after you die. Consequently, creditors could claim assets from your estate to pay off the debt. Unfortunately, many people don’t consider student debt when they think of the reasons why to buy life insurance.
7. You Work for Family or Are Self-Employed
When you’re self-employed or work for a family business, your death could have significant financial implications. To begin, you do not have an employer-sponsored life insurance plan. On top of that, your employees or co-workers could incur substantial expenses as they learn your role in the business. In some cases, the company will cease to exist after your death.
Don’t Shrug Off Life Insurance
There are several reasons why life insurance is essential. Not only is it key to building up a financial security, but it also protects your loved ones from family hardships after your die. If you don’t have life insurance, you should consider how your death will impact those around you. There are more reasons why to buy life insurance than there are reasons not to purchase life insurance coverage.