Young adults commonly do not consider their needs for life insurance, as the possibility of an untimely passing naturally feels far away. The pandemic has changed many of our opinions on life insurance, however, as the uncertainty of the health crisis showed many that none of us truly know how much time we have left.
Experts have found that, in 2020, the number of life insurance policies sold rose 2%- coinciding with a notable uptick in young people securing insurance. This is partially because the pandemic has emphasized the importance of preparing for anything, and young people have learned that they have a lot to gain by setting policies up early.
Shawn Meaike- Family First Life CEO- acknowledges that there are many inherent benefits to considering life insurance as a young adult. Here, Shawn includes a few of the most cited reasons why young adults are taking the steps to secure life insurance coverage at growing rates.
Easier to Get Coverage
One of the benefits of securing life insurance while you are younger is that it is easier to get coverage while you are in good health. Younger people that are exploring life insurance options typically find that they can be locked into lower premiums for as long as they hold the policy.
There are many reasons why young people can secure lower premiums for their life insurance. For example, young people are typically healthier, and it is considered less of a risk for insurance providers to cover them.
The differences between costs for life insurance for younger policyholders versus older ones can depend based on the insurer, but individuals who choose to secure policies younger can save tens of thousands over the course of their policy. This gives them the financial leeway for other life events as they age.
Helps Protect Family Financially
Some of the most common situations that young people purchase a life insurance policy are marriage or the birth of a child. This is because people realize that, should they die unexpectedly, their families could be left financially vulnerable while they are grieving.
Life insurance payouts for policies secured while a person is young can be an incredibly helpful resource for those left picking up the pieces, helping them cover costs such as groceries, debts, and day-to-day expenses.
Shawn Meaike mentions that many of us have bills that we are required to pay month by month, and these typically increase as we start to build a family. No one would want their family to have difficulty paying monthly statements from student loans or a mortgage in the event of their passing, and life insurance policies for young people are an efficient way to ensure that these things are covered.
It is hard to consider the possibility of not being there for our families, but leaving them financially secure is the next best thing
Provides Peace of Mind and Protection Against the Unexpected
None of us plan to need our life insurance policies, but the reality that things happen is encouragement enough for many young people to explore their coverage options. The younger we are the less that we think about the possibility of death. Growing up means establishing ways to prepare for the unexpected as it can bring us and our families peace of mind.
Statistics show that the average funeral costs can fall anywhere between $7,000 and $12,000- much more than most families have on hand. Naturally, it can be a lot easier not to worry about the uncertainties of life when we know that our families will be financially stable regardless of the situation.
Some young adults may be uncertain about their decision to explore life insurance because they often have less disposable income than older working adults. Securing a policy how young, however, is still an effective choice because of what it can save if it is needed. Peace of mind is essential for building a life and transitioning through life events.
Forms a Crucial Part of Long-Term Financial Strategies
Young adults are typically playing the long game when it comes to their finances. While they may not have the highest incomes on average, they have the time to build effective long term financial strategies- and life insurance can play a key role in them.
Life insurance stands out as a critical piece of long-term financial strategies for young adults because certain policies can be used as a form of investment for wealth building. For example, whole life insurance is a type of policy that accumulates cash value over time, which young adults can use for life events such as paying for tuition, a wedding, a home down payment, or even for supplementing retirement income.
Universal life insurance is another type of coverage that helps policyholders build tax-deferred cash value. It is like whole life insurance in that it can be used to cover costs of both planned an unexpected expenses through building cash value.
Many young adults are at a point in their lives where they are looking into financial strategies and forms of investment, and it is important that they remember that insurance packages can be a great choice for getting finances secured and accumulating. Specific benefits may depend on the types of insurance available to you and the providers, so Shawn encourages those who are interested to carefully research their options.
Evaluate Your Need for Life Insurance Today!
If there is one thing that Shawn Meaike has learned during his tenure as Family First Life’s CEO, it is that you do not want to wait long before considering your needs for life insurance coverage. Not only will this impact the rates at which one can secure coverage, but it can also leave loved ones vulnerable to unpaid debts and the many costs associated with funeral proceedings.
While Shawn recognizes that important life events such as marriage, the birth of a child, or purchasing a home are a few of the most common reasons people look into insurance, he notes that they are far from the only examples. Life insurance policies stand out as an excellent way to build upon existing financial strategy and give people of all walks of life peace of mind as they explore what life has to offer.
If you are considering examining life insurance options, do not wait. See how coverage options align with your current lifestyle and get your quotes today!