8 Reasons Young Workers Need Life Insurance

If you’re like most people, just the thought of life insurance is enough to make you squirm. No one wants to think about death and what will happen to your loved ones after you pass away, but it’s a reality of life and something we all have to face eventually. Most young professionals brush off the need for life insurance until they’re married with children, but, in all actuality, now may be the best time to invest in life insurance while you’re young and healthy. If you’re young and need some more convincing as to why you need life insurance, check out these eight reasons below.

  1. Support your loved ones:

    A common misconception young people have about life insurance is that you have to have children or be married to benefit from the coverage. This couldn’t be more wrong. Of course, having dependents is the most obvious reason to get life insurance so they’ll be financially secure if you die. But there are plenty of other people who can benefit from your life insurance, such as family members, friends, or your favorite charity.

  2. It is a good investment:

    Life insurance is a solid investment that can pay off big now and later. Young workers may want to consider a variable life insurance policy to expand their investment portfolio and give them the opportunity to dabble in stocks, bonds, and mutual funds. Buying life insurance is a relatively low-risk investment, but there are some pitfalls to watch out for and research before you make any risky moves.

  3. Affordability:

    Young workers are extremely lucky in the fact that they typically have lower premium rates for life insurance because they are low-risk candidates. Be sure to shop around for the most affordable plan and compare coverage levels and premiums to ensure you get the most for your money. But don’t just buy life insurance because it’s cheap while you’re young; make sure it’s a worthy investment for your future.

  4. Forces you to save:

    Young workers are known for being irresponsible with their money and forgetting to save when it’s most important, but, did you know, investing in life insurance is an easy way to force yourself to save? Universal life insurance is one of the most flexible types of life insurance and those who purchase this kind can change their annual amounts and death benefits as they see fit. Those covered under a universal life insurance policy can better manage their money and save depending on the events in their lives.

  5. Cover future expenses:

    If you’re a new parent or plan on starting a family in the near future, it’s not a bad idea to start thinking about your child’s future and the expenses you may or may not be able to cover in your lifetime. Saving for your child’s college education, wedding, and other important life events can take several years, and, unfortunately, you may not live to see these moments. One of the greatest gifts of all is saving for the unexpected and providing your loved ones with the money to make their life dreams come true, whether you’re there or not.

  6. Cash value:

    A major plus of buying permanent life insurance at a young age is seeing the value grow over time. The cash value is a portion of the life insurance policy premiums that is taken out and put toward an investment. You are free to borrow from or cash out the cash value investment if you no longer need the policy or desperately need the money now.

  7. Future insurability:

    Buying life insurance at a young age can help you guarantee future insurability, meaning that you, or whoever else is covered under your life insurance policy, can purchase life insurance later without having to undergo medical exams and questioning that could decline you or your loved ones from life insurance. Buying life insurance now while you’re young and healthy can save you a lot of money and heartache if you develop serious health problems and become uninsurable.

  8. You have options:

    Life insurance is not as cut and dry as you may think, and there are quite a few options for you to choose from. Most young workers will opt for a term-life policy to start, which will generally cover you for 10 to 30 years. You can also purchase a permanent life insurance policy, also known as whole life insurance, which provides a death benefit and a cash value that you can borrow from. Universal life insurance offers the same features as the permanent policy, but has a more flexible, change-as-needed policy.