Should young adults purchase life insurance?


Young couples may want to consider the benefits of a life insurance policy.

There’s no question that today’s young adult generation faces enormous economic challenges. From paying off student loans to starting a new career, these choices are understandably complex. During the start of the post-college years, some have to make tough financial decisions that can have a truly long-term impact. 

But what about life insurance? This useful protective policy is a mainstay for older Americans, especially those who have families and are approaching retirement. A life insurance policy is a helpful method for a person to protect their loved ones in the event that they pass away, as it ensures that those in need are financially cared for during a difficult transition. Yet for younger people, opting to buy such a policy may not seem necessary.

In today’s article, we’ll try to unpack this issue more deeply and explore life insurance for younger adults—how it works and why these individuals may actually want to give a life insurance policy some thought.

A policy that’s there when you need it most

As we’ve explored previously on this blog, a life insurance policy is designed to make up for the lost income and economic security provided by an important family member. For example, if a husband dies, his wife would receive the death benefit and could use that money to pay off the mortgage, settle debt accounts and set up retirement and education funds for the future. All in all, these efforts are aimed at establishing financial stability during a tough time.

Because of the family-oriented nature of many life insurance purchases, young adults—some of whom are starting families of their own—may want to consider a life insurance policy as an investment in their household security. Because many of today’s recent graduates are adjusting to their new lifestyles, having an extra form of protection may be worthwhile in an uncertain economic climate. In the event that something happens and a younger person’s spouse is left with a mountain of bills, having a policy in place that provides comprehensive protection is something worth investing in.

Exploring the options

There are several types of life insurance policies available in today’s market, but figuring out which one is most beneficial may be a tough choice to make. Some young adults may prefer to opt for a term life insurance policy, which provides a financial safeguard for a fixed duration of time. The advantage here is that folks can protect themselves for a certain period at a reduced cost while they advance in their careers and generate more income. 

On the other hand, a longer-lasting whole life insurance policy may provide increased security when it’s most needed. With so much economic uncertainty these days, having the knowledge that their family is protected may prove to be hugely beneficial in the long run. 

Emily Lambert, a life insurance expert writing for Forbes, said that young adults should carefully weigh what they think could be their future financial requirements.

“Estimate what your survivors would need to cover future bills, including a mortgage and the rapidly rising cost of college,” she wrote. “Then subtract your spouse’s expected earnings, plus death benefits your family would receive from group life insurance policies, Social Security and other sources.”

Reaching out today to learn more

With so many options in today’s life insurance market, it’s never too late to explore what’s available. Contact us today to find out about the different types of policies, access online life insurance quotes and more! 

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