UPDATED: Mar 26, 2020
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A lot of major life stuff happens when you’re in your 20’s and 30’s. Any of these ring a bell?
• Buying a home
• Starting a family
• Starting a business
Life can go from simple to complex in the blink of an eye. It’s not just “you” who you need to look after. With a spouse and children, you’re not the only one who depends on your income to make ends meet.
The responsibilities of providing for a young family include the mortgage, car loan payments, groceries, electric bills and more. And then there’s the future to prepare for.
According to a study by LIMRA and Life Happens, affording a comfortable retirement and rising medical costs reign as people’s top financial concerns. There was a time when younger people didn’t worry quite so much about those things, but times have changed. Sixty-nine percent of adults under age 25 are either concerned or extremely concerned about having enough funds to have a comfortable retirement. Seventy-one percent are either concerned or extremely concerned about being able to afford medical expenses. Perhaps it’s not all that surprising with the uncertainty of what Social Security will look like in the future and health insurance premium costs (with coverage now mandatory by the federal government).
All things considered, there are plenty of reasons why younger adults might consider getting life insurance.
Protect Your Young Family With Term Life Insurance.
As tight as your budget may be now, how much tighter would it be for your young family if the unthinkable happens to you? Chances are they depend on your income.
Term life insurance is one way you can help protect your loved ones from financial hardship if you were to die and your paychecks were to go away.
Offering coverage at premiums often significantly less than those for whole life policies, term life insurance is an affordable type of life insurance. It provides a death benefit to your beneficiaries when you pass away. That money can help them pay for funeral costs, pay off loans, and take care of everyday living expenses.
With term life, you can choose the length of the time (the term) your policy will be in effect. The available periods are 10, 15, 20, 25, and 30 years. You have the flexibility of selecting a length that’s realistically long enough to cover you until others aren’t as dependent on you for their financial well-being. The shorter the term, the lower the premium, and you can renew policies before they expire if you want to extend them.
Realize, however, that renewing a shorter term policy could end up costing more in the long run. With a longer policy, a 30-year term, for example, you’ll pay a slightly higher rate than for a 10-year term. But with a fixed premium 30-year policy your premium costs will remain consistent through those 30 years. If you’d renew a 10-year term after it expires, you might end up paying more than you would have for a 30-year policy because premium rates increase with age when applying for new policies.
Regardless of the term length that you choose, term life can provide peace of mind and a financial safety net that’s budget friendly even for young families who have limited resources.
Want Peace of Mind? Don’t Avoid Thinking About the Unthinkable.
Nobody likes to think about not being there for his or her family, but it could happen. Pretending it can’t does not change the reality and uncertainty of life. It only takes a few moments to find out how much the peace of mind of a term life policy might cost you—and the younger you are when you apply, the more affordable it will be.
You can quickly, conveniently, and confidentially estimate how much coverage you’ll need and get a quote online. Also, consider talking with a trusted life insurance professional about your options, so you can make a decision that best meets the needs of you and your loved ones.