Life Insurance for Young Adults

Any individual with a spouse and children knows that life insurance is an important consideration. But what about young individuals? There isn’t a blanket statement to answer that question, as many variables affect one’s insurance necessities.

Let’s take a look at few scenarios:

1. Single young adult with no dependents: This person may not need life insurance at this point in his or her life. Without dependents, life insurance’s purpose is to pay off any outstanding debts upon the death of the insured, such as school loans, car loans, mortgages, credit card debt etc. If this individual is lucky enough to not have debt or has enough money in savings to cover the debt, then life insurance may not be a worthwhile investment.
2. Single young adult with dependents: Whether this person’s dependents are children, elderly and/or sick parents or special needs family members, the insured will want to ensure the financial well-being of any dependents following his or her death. A life insurance policy helps fund the continuation of care, so the financial burden doesn’t fall to another family member.
3. Married young adult with no dependents: If both spouses work and have no outstanding debt, just like our first example, life insurance may not be necessary. However, if one spouse is the sole wage earner and/or if the couple has outstanding debt, life insurance may be an important consideration for this couple.
4. Married young adult with dependents: This couple should absolutely consider life insurance, which can be purchased in amounts large enough to provide wage replacements to the surviving spouse, pay off any outstanding debts, fund funeral expenses and financially support future events, such as a child’s college education. Life insurance is most beneficial to families, who have the most to leave behind in the event of a tragedy.

Life insurance for healthy, young adults is cheaper than you may think, often costing less than your monthly internet bill. And if you purchase a policy early on, you can lock in that low rate for the entire term of your policy, regardless of any future changes in your health.