When you’re just merely starting out, life insurance may not be your first priority. But it’s worth planning for unforeseen events that might happen.
Half of the millennials have life insurance – whether through an employer, their own policy or both. The reason we have insurance is to provide assurance and protection for the people we are going to leave behind.
When you’re single and young, you might not need a lot of life insurance – if any. But there are some situations where you might want to secure a policy in your younger years.
Income support
If somebody counts on you for your income, then you might consider getting a life insurance. Many individual start to think about life insurance when they are about to start a family. But they aren’t the only people who might benefit from a
policy replacing your lost income. One in five millennials financially supports their parent, with an average outlay of $12,000 a year.
Co-signed debts
If a relative or a friend has co-signed on a debt for you – a car loan, for example – they could be on the hook for the outstanding amount if you were to die. In those cases, a term life insurance policy can cover that debt should you die before it’s zeroed out.
Uninsurable lifestyle
Factors like risky hobbies, pre-existing medical conditions, or a dangerous job influence availability and rates of life insurance. Term insurance can be a cheap protection to put in place now so that you have needed coverage later. Everybody has the chance of becoming uninsurable. If you know you’re on the fast track, it’s really a good idea to get insurance.
If you’re already at risk, don’t ever lie on your application as this could make your claim void – leaving you and your loved one unprotected.
