Life Insurance and Millennials

It may be easy to think you don’t need life insurance when you are just starting your career and feeling relatively healthy, but it’s a very crucial step to set the foundation for financial security in middle-age. In fact, the best time to buy life insurance is when you are young and healthy because you’ll qualify for the best rates. Check out these important reasons to buy it sooner rather than later.

Buy it now

Buy it now to check an important financial milestone off your list. Plus it’s one less thing you’ll procrastinate about over the next two or three decades. Besides the feeling of having accomplished something important, consider these other great reasons why you should buy life insurance early.

  • It doesn’t get any cheaper. Life insurance premiums increase by an average of 8-10% every year you put off buying and, unless you’re unhealthy, life insurance will never be cheaper for you than it is at this moment.
  • Funerals are costly. The average funeral costs between $6,000 and $10,000. Even if you plan for a more non-traditional funeral, like an end-of-life party, someone will have to foot the bill. A relatively small life insurance policy can help do that.
  • Not having it is a risk. Some people don’t want life insurance because there’s a chance it won’t pay out and they see that as throwing away money. But the truth is, you never know if something or nothing will happen to you. When you’re younger, you have many more uncertain years ahead of you. Life insurance is a logical choice.
  • Don’t stick your family with debt. If something were to happen to you, all of your debt could fall entirely on your parents or spouse. Buying enough life insurance can take care of all these financial issues so your loved ones can have a little less stress to deal with in the event you pass away.
  • You have kids. If you’ve got an early start, you have to make sure your little ones will be taken care of in the worst-case scenario. This is particularly important if your spouse is a stay-at-home parent since they’d need money to replace your income stream at least temporarily. Even if both of you work, life insurance could still come in handy when it’s time to pay for higher costs down the road.

Bottom Line

Managing your money in your twenties usually involves a ton of trial and error. But learning as much as you can about the basics can give you an even greater advantage. Life Insurance may be the last thing on your mind, however, it’s definitely something that all millennials should consider as part of your larger financial plan.