If you’re a recent graduate or someone beginning their career, now is the right time to start planning for your future, including securing life insurance. Regardless of your marital status or whether you have children, life insurance has several significant benefits. Learn more about why you shouldn’t put off this decision until you’re older with this helpful guide.

Why Should Young People Get Life Insurance?

1. Lock in a Lower Rate

Life insurance rates are based on your age and health. Purchasing a policy while you’re healthy and young means you’ll have access to the best rates available. Waiting until you’re older, and potentially dealing with a medical condition, might mean you’ll be subject to higher rates.

2. Protect Co-Signers on Loans

Life insurance is traditionally used to help the deceased’s family replace lost income. However, it could also help your co-signers pay any loans you have in your name. Many younger people need co-signers on things like student loans, and without the right coverage, your co-signer will be on the hook for the remainder.

3. Accumulate Value

Whole life insurance offers a death benefit, but it also accumulates cash value. A portion of your premium is taken aside and put into a tax-deferred account, and you can borrow against this money while you’re still alive. This money can be used to open a business, buy a home, or for any other expenses that arise. 

4. Protect Your Spouse

Even if you’re married without kids, your spouse may rely on your income to get by. If you die, they will be left to cover a mortgage, utilities, and other living expenses alone. With a death benefit from your life insurance policy, it will be much easier for your surviving spouse to make ends meet.

5. Cover Funeral Costs

Funerals and burials can be expensive. Even if you opt for the most basic services, your family will likely end up spending thousands of dollars. Proceeds from life insurance can be used on funeral costs, as well as end-of-life medical care that isn’t covered by health insurance.

The team at Sweeney Insurance Agency in Kodiak, AK, understands that purchasing life insurance is a big decision, no matter your age. These independent agents have strong relationships with respected insurance carriers, so they can shop around to find a policy that fits your budget. They also believe in providing quality auto, home, boat, and business insurance to clients throughout Alaska with top-notch customer service. Learn more about their insurance products online or call (907) 486-3101 to schedule a consultation.