Life insurance is a risk management tool that pays a benefit to your survivors if you pass away while the policy is in effect. Because they presumably have many years left before they need to worry about final arrangements, many young adults don’t realize that they should have coverage. Here are a few reasons why people in their 20s should buy life insurance.
Why Young People Should Buy Life Insurance
1. It’s Less Expensive
Life insurance costs are based on your life expectancy. Because people in their 20s are expected to continue living for decades, the cost of coverage is low.
If you buy coverage today, you can lock in the low rates for the duration of the policy, or even for the rest of your life. Meanwhile, you can enjoy the peace of mind that comes with knowing your family is protected if something unexpected should happen to you.
2. To Pay Off Debt
Many young people need a cosigner to qualify for a car loan, student loan, or a mortgage. If you’re one of these, the cosigner has agreed to assume any debt you've incurred if you are no longer around to fulfill the obligation. A life insurance policy would relieve them of this burden, should you pass away suddenly. Simply make your cosigner the beneficiary of a policy large enough to pay off the loan balance.
3. To Pay for Final Expenses
When someone dies unexpectedly, their survivors are often left with a heavy financial burden. The cost of a funeral and burial service can run into the tens of thousands of dollars. If you practice foresight, you can relieve your survivors of this burden.
Choose a small life insurance policy and direct the proceeds to a local funeral home in return for final expenses. That way, your loved ones are not stuck with a huge, unexpected bill on top of the sudden loss of a family member.
To purchase affordable life insurance, contact the friendly agents at Western States Insurance Group, Inc. in Lovington, NM. They serve Lovington, Hobbs, and Lea County, as well as the surrounding areas and are known for their attentive customer care. In addition to life and health insurance, they also specialize in auto, home, business, farm, and oil & gas insurance. Visit their website to learn more about the services they offer or call (575) 396-1318 to request a life insurance quote. Like Western States Insurance Group on Facebook and follow us on Twitter.