As a millennial, you may think you have a lifetime ahead of you to purchase a life insurance policy. You may have started a new job or bought a new home and you consider yourself to be young and healthy. However, if you have bills to pay and others counting on you for support, the last thing you want to do is to leave them with your debts. Need more convincing? Here are five important reasons why Millennials need a life insurance policy.
While most millennials may not have a spouse and children just yet, there are many who do. As a young individual just starting out, it’s hard to start a savings account when you have others to support. A life insurance policy will ensure your family has the coverage they need to stay afloat and pay for your medical bills and funeral costs.
There are several factors that go into determining life insurance premiums. Two main considerations are your age and your health. It’s likely your premium costs will be lower the younger and healthier you are. It’s especially beneficial if you are a nonsmoker and do not have pre-existing health issues. The longer you wait to lock in coverage, the more you are going to pay for a policy. Securing a policy with a lower rate now will save you money in the future.
Paying Loan Debt
A lot of millennials have entered the workforce with a lot of debt in tow. If you pass away unexpectedly, some student loans may be waived. However, if your family members cosigned on any of your loans, then they are responsible for this debt. This includes student loans, cars and credit cards. Make sure to list your parents as beneficiaries on your policy to avoid any confusion about disbursing funds.
High Funeral Costs
Did you know the average funeral can cost up to $10,000? Would you want your family to be on the hook for such a large expense to go on top of the medical bills and debt left after your death? Securing even just a small life insurance policy will help cover costly funeral expenses.
Your Employer Does Not Offer Enough Coverage or None At All
Some company group life insurance policies do provide enough coverage while other companies do not offer a coverage plan at all. A life insurance policy can help supplement what your employer does or does not offer.
Being young and healthy does not prevent you from being a victim of a terrible accident or succumbing to illness. Securing a life insurance policy sooner than later is one of the smartest financial decisions you can make for your future.
Care Financial is a privately owned and operated business providing families, individuals and businesses with comprehensive wealth management strategies. Contact us online at www.carefinancialonline.com or call us at 251-633-7122.