Many employers offer life insurance to their employees. If you’re in your 20s or early 30s, you may not feel that life insurance is necessary. After all, you might be healthy and single. You may even grasp the benefit of hospital indemnity insurance. After all, a sudden accident can place even the healthiest of people in a hospital, and those can be tremendously expensive. But life insurance?
The truth is, the younger you purchase life insurance, the better. Here are a few reasons young people need life insurance.
The younger you are when you purchase life insurance, the better. Here’s why.
You Will Save Money
It might not be immediately intuitive how buying life insurance in your 20s will save you money in the long run. But trust us—you will end up paying less the younger you are when you buy the policy.
Generally speaking, the younger and healthier you are, the lower your life insurance premiums will be. This is good news if you’re a healthy 20-something. This is because the risk of a payout is much lower, as the event of your death is not likely to occur for some time. If you wait until you are married and have a family to buy a policy, you will not be locked in with a good rate, and will probably end up paying far more.
Help with Student Debt
To understand this point, you might have to think from the perspective of others. If you’re unmarried and without children, you might not think too much about what will happen to your debt if you were to pass away. The majority of millennials graduate with a significant amount of student debt. Without a spouse or children, that debt would fall on your parents in the event of your untimely death. Having a life insurance policy would help ease this burden.
Ease Funeral Costs
This ties in a bit with our previous point, but you might also want to consider the fact that your loved ones will have to pay for the cost of your funeral. The good news is that even a small life insurance policy can help tremendously with this, as your typical funeral costs upwards of $10,000. Most young people don’t consider the costs of funerals, but for the sake of your family, you might want to.
You May Have Dependents Soon
Just because you are single and without children now doesn’t mean you will still be that way in a couple of years. Life has unexpected twists turns, and you could end up with a child or other dependent before you know it. With this in mind, you should give extra consideration to life insurance when reviewing the supplemental benefits offered by your employer. If you end up with dependents who need your support in the next few years, you’ll be glad you did so.
Partner with Malden Solutions Today
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.