Most millennials believe it’s not necessary to get term life insurance. Many are already in debt from student loans and figuring out how to budget their money. It is becoming more and more common for millennials to get married and have children at a later age, making them think term life insurance is a waste of money until then. But here are some reasons why you should buy term life insurance sooner rather than later.
- It’s Cheaper
- Funerals are Expensive
- Your Family Could Be Left With Debt
- Your Employer’s Insurance May Not Be Enough
When you buy term life insurance in your twenties, it is significantly cheaper than when you wait until your thirties or forties. Term life insurance rates are based on a few key factors, with your age and overall health being the most important. It’s likely that you’re healthier in your twenties than later in life. As a young, healthy person you will be less of a liability to the life insurance company, making your premiums cheaper. Be sure to choose a plan where the premiums are locked in for the entire term so you can keep the lower rate.
If you died suddenly, who would be burdened with the cost of your funeral expenses? Most likely your parents or siblings. Funerals and burial expenses average between $5,000 to $15,000. That is a big chunk of money for your parents or siblings to come up with unexpectedly.
If you’re like most college graduates, then you most likely have a large amount of student debt. If you took out a conjoining loan with your parents to pay for your tuition then the debt would pass onto your family. With a term life insurance policy, you can make sure your family isn’t stuck with paying off your debt. If you’re a newlywed and just bought a house, could your spouse pay the mortgage without your income? Term life insurance could give you and your spouse the security you need.
If you have a job that offers life insurance, then take it, but buying a separate policy may be necessary. Unless you plan on staying at your job for the rest of your life, you will lose that policy when your change jobs or if the company goes out of business.
At LifePlan Financial, we pride ourselves on our quality work, our honesty to our clients, and the reliability we provide. Getting life insurance doesn’t have to be a hassle when you use LifePlan Financial. Contact us today for any questions or get an instant term life insurance quote to get started.