If you're an older adult, you probably know the benefits of life insurance by now. The most obvious reason why is because the majority of older adults have been married and had a child (or more), which are the two events most likely to prompt your looking to secure the financial future of your spouse or children in the event of your passing.
There are some lesser-known reasons why you should look into life insurance. This is especially true for younger adults. The biggest reason to start exploring your life insurance options when you're younger is that a life insurance policy when you're young and healthy is going to be much cheaper than trying to get one when you're older. According to Policygenius at the time of this posting, you can expect to pay somewhere between $10 - $50 per month for a term life policy.
So why get a life insurance policy now, before you've met your potential life partner or maybe before you've even decided whether or not you want kids? Here's a few reasons:
1. You are the caretaker of your parents or other family members.
Basically, if anyone else relies on your time or income to support themselves, then you'd want life insurance to make sure they're protected in case you can't help them anymore. Most commonly, people get life insurance because they don't want their kids to suffer financially when they're gone. But it can go both ways - you probably wouldn't want your parents to suffer financially, either. And as your parents age, the likelihood continues to increase that they'll need care at some point. What if you're not around to help provide it for them
2. You have debt.
We recommend that you include what debt you owe when you're deciding on a coverage amount for life insurance. That's because if you pass, the money can be used to pay off your outstanding balances. This includes if you have a mortgage or student loans. Some loans may be forgiven in the event of debt, but not all of them do this. If that's the case, then your loved ones will be left to foot the bill unless you've purchased a life insurance policy that would cover that debt.
3. You own your own business
If you're a small business owner who has taken out a small business loan, the death benefit on your policy can be put towards paying off that loan if you die. And, if you prefer to set it up this way, your employees and/or stakeholders can continue getting paid while they figure out what their next steps should be.
4. You have a dangerous job, or "extreme" hobbies
Some of the most essential jobs can be high-risk. These types of jobs include construction, emergency response (like firefighting or EMS), mining, aviation, and some health care settings. While the premiums for your life insurance policy might be higher if you have a higher risk career, the benefits will make it worth it.
To put it simply, your high risk job puts you at a greater risk of dying than someone else. And just like if you have a high-risk career, your extreme hobbies (like skydiving) may increase your premium, but it may be worth it if your hobbies put you at a greater risk of death.
If there's anyone in your life who may depend on your income, that's all the more reason to look into life insurance. If you plan on getting married or starting a family someday, your life insurance policy will ensure they can get back on their feet if you lose your life doing your job or living your life to the fullest.
5. You think you might want to get married or have kids someday.
It's never good to rush either of those things, but if you think at some point there may be someone (or more than one!) depending on your income, then the time to shop around for life insurance may be now. The simple reason is that the younger you are when you get life insurance, the lower your premium is likely to be.
6. You want to build cash value.
Okay, maybe you're not sure if you want that spouse or kids. So why pay for life insurance if down the road, there's nobody that will depend on your income? Some types of life insurance, such as whole life insurance, allow you to accumulate the cash value to tap into in at any time. Consider it like an extra cushion - it's good to have if you end up needing to support another person financially, but it also good to be able to tap into if you have a financial emergency down the road.
What are your next steps, if you're considering life insurance?
Get in touch with our agency and we'll get you hooked up with a life insurance expert. They'll help guide you through your options (there are a lot of options!) and decide what would be a good fit for you, your lifestyle, and your budget. And as always - quotes are free.
If you want to know more, you can take a look at our Life Insurance FAQs.