Life Insurance for Young Adults: Why You Need It

If you're young and healthy, you might see life insurance as something just for the old. But life insurance for young adults comes with many benefits worth understanding.

Life Insurance for Young Adults: Why You Need It

If you're young and healthy, you might see life insurance as something just for the old. But life insurance for young adults comes with many benefits worth understanding.

March 16, 2020

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Life insurance isn't something most young adults spend any time considering. After all, why would they? They're young and probably at their peak health.

Life insurance is a parent or grandparent problem, right? It's just a way to make sure that mom doesn't lose the house if dad gets hit by lightning while playing golf in a thunderstorm.

Yet, life insurance for young adults does provide some benefits when viewed in the proper light. Yes, you'll spend some time delving into the mysteries of term life and whole life policies. What you'll get in return might make the effort worth it.

Keep reading for some reasons why life insurance might be for you.

You Might Die Young

It might seem morbid to think about, but some people do die young. In fact, around 300,000 people between the ages of 25 and 54 die every year. They become victims of accidents, diseases, or aggressive illnesses like the flu.

While you'll probably beat the odds, you can never entirely rule it out.

Protect Your Loved Ones

The average cost of a funeral runs up to about $10,000. Without some kind personal savings or a life insurance policy in place, those costs land squarely on your spouse or parents.

How about your college loan debt? Those student loans don't get forgiven just because you die.

Many people need their parents to co-sign for their student loans. If they did, they must take up paying on those loans. If you consolidated that debt with your spouse's debt, your spouse becomes responsible.

A life insurance policy helps protect your family from your funeral costs and any outstanding debt you carry.

Give Your Family Breathing Room

Going right back to work is one of the most difficult things to do after the death of a spouse or child. Your spouse or parent must grieve while trying to do their job well enough not to get fired. An appropriately-sized life insurance policy makes it financially possible for your spouse or parents to take time off to grieve.

There is no perfect amount that will replace you. Still, a policy that pays out around six months to a year's worth of your salary gives your family financial breathing room. It's also a way you give yourself a little peace of mind about their well-being.

Parting Thoughts on Life Insurance for Young Adults

Life insurance just doesn't top the list of things most young people worry about. Yet, life insurance for young adults does offer some benefits.

It protects your spouse or loved ones from funeral costs and lingering debt if you die young.

It also lets you give your family a financial cushion for the months following your death. They can focus on grieving because you made sure they didn't have to focus on going to work.

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