You are young and the world is yours! So why bother thinking about life insurance? Let’s face it, talking about debts and death is pretty much torture for most people, and who wants an additional expense when you could use that money to go out on a Friday night? Yet with new commitments, such as buying your first home, getting married or having children, comes the responsibility of making sure your loved ones will be provided for financially. When you die, life insurance can help your loved ones maintain their standard of living and keep their plans for the future on track.
I’m not married and have no kids
But do you have debt? Credit cards, student loans, mortgages, car loans? Anything that has been co-signed by a parent, the responsibility of paying those off debts will fall to them should something happen to you and that can add up to a heavy financial burden. Additionally, funeral costs and “final expenses” can be shockingly costly. Though it may be an unpleasant dinner conversation, it is important to understand your financial obligations, how they could impact your family, and if a safety-net like life insurance is needed.
I’m in great health!
Awesome! This is the ideal time to purchase life insurance if you can afford it. Your young, healthy status signals you’re unlikely to pass away, so your premiums will be very affordable. If you wait until you’re 40 with kids, a spouse, and a mortgage, the need for life insurance is painfully apparent, and the rates are more expensive too. You’ll also have more time to put money into the policy and accumulate interest.
My employer provides coverage
If you were lucky enough to land a good job with a great benefits package, you may already have a basic employer-sponsored group life insurance benefit plan. But is it enough? If you were to develop a serious illness and couldn’t work, having your own plan can cover you if your employer’s policy lapses. Depending on the type of insurance you have, you may be able to borrow against it to cover your medical costs. Another insurance policy would also cover you in the event you’re laid off, you change jobs or your employer goes out of business.
I only need life insurance if I’m the primary breadwinner
Whether you bring home the largest paycheck in your household or a smaller one, your family relies on your income, and it would be missed if something were to happen to you. Even if you don’t work outside of the home, you probably need life insurance. Stay-at-home parents perform valuable services such as childcare, cooking, housecleaning, and household management, which can be costly to replace.
I can get a better rate of return if I invest my money elsewhere
While the most important reason for any life insurance purchase is to provide protection for your family, life insurance provides you with the ability to accumulate cash values that grow over time. Contrary to what many people believe, long-term rates of return on cash values are generally comparable to relatively low-risk investment products.
Service Credit Union has life insurance options that can provide you peace of mind and provide your family with financial stability and security when it matters most. Learn more today.