When you hear the words “life insurance”, most people admit to thinking of their grandparents or parents. The senior citizens in society who need these types of policies. They also may group in those who have children who depend on them to the group considered to need a policy in place. The truth is – Everyone really needs and can benefit from having life insurance, this includes young millennials.
Why would a single 20 something bother with life insurance?
Life is unpredictable. Ever heard the saying “Only the good die young?”, the fact is that just isn’t true. Death can strike anyone at any time and it has nothing to do with being well behaved.
Just to round out the list once you reach 65 the biggest threat becomes heart disease.
How does having a life insurance policy help?
We know it’s not easy to think of your death, especially as a young single person. It is, however, responsible of you to take care of those who will be grieving over your loss and help to ease the possible additional financial burden that you might leave behind.
Additionally, life insurance can also be used as an investment shelter while you alive – to be borrowed against at low rates when you need money, and stockpiled with compounding interest for retirement when you reach that age should you continue to live a nice long full life.
The other benefits:
Cheap policies!: Life insurance requires a physical. When you are young you are in good health mostly. The better your rating the lower your rate. By locking into a life insurance policy while young, you will be paying a lot less than if you wait until you are older and you have the massive benefit of time. Insurance companies will pay you dividends based on the performance of their portfolio yearly. Over a lifetime it adds up to a large chunk of money. The sooner you start the better.
Funeral expenses: Accidents, crime, and illnesses are facts of life. Who will pay for your funeral and all of the expenses? If your family would find it difficult to pay for a funeral. Life insurance is for you.
Debt: Debt does not die along with you. Someone will need to pay those loans that your bank gave you. Especially for student loans. Banks have been known to call in a loan just days after a person’s death. While your family isn’t responsible, your estate is. If you have little to no life insurance, they can legally take any monies in that estate no matter who you left it to… if you have debt? You need life insurance.
Caring for elderly parents: If you have a parent you know you are likely to be caring for in their old age, then having a life insurance policy in place is important. You are able to plan on future expenses (such as caring for an elderly parent or a disabled family member) through your policy. Listing them as a beneficiary and allowing them peace of mind in their old age is a priceless gift.
Living expenses: If you have a roommate or are living with a significant other, most likely you are sharing the expense of your apartment, condo or house. To leave them with the expense of taking on all of the bills themselves might be too taxing. Life insurance can help provide your share of the rent/mortgage in the event that you pass away unexpectedly. Just make sure to list them as a beneficiary.
So you see, life insurance isn’t just for the elderly or those with kids. If you have people in your life you care about or you are looking for a way to build equity over time a life insurance policy may be right for you.
Give us a call to talk with our advisors about customizing a life insurance plan that fits into your life. We have the experience and knowledge to help you find the perfect plan for you. Call Centennial Insurance Services at 239-247-5125 or visit us online for a quote or to schedule an appointment at cisinsfl.com