Lets face it. The Average American lives to be about 80 years old and that number seems to inch up every year. 25 may be too young to die, but its not too young to think about what would happen if you did. Especially, if you don't want to leave a mess behind you. Here's when someone under 30 should consider buying life insurance:
When you have children.
Once you have a baby, you know that he or she depends on you for their every need. The baby looks to mommy or daddy to feed them, clean them, dress them and love them. What will happen to the baby if mom or dad should pass away? Its something we don't want to consider- especially when we are young. But who will take care of your baby? Where will they live? How will they survive? These questions can only be answered with careful planning. How can you assure your baby is not raised in poverty, has a chance to live a happy life and can acquire the education they'll need for their future? The answer is to leave enough money to them so that they don't have to look to others or charity to pay for their future. Unless you are lucky enough to be born to wealth, you probably haven't saved enough for your baby's future. How does a young person assure their baby's future? Life Insurance is the answer. By paying a small premium each month you can assure that your baby's guardian will be able to raise your baby the way you wanted to.
$250,000 in ten year term insurance costs about 11 bucks a month for a 25 year old.* About as much as a Pizza pie.
When you marry.
Once you commit to marrying another, you are stating to the world that this is my partner in life. You are promising to watch out for another and a big part of that is financial. Most married partners set up joint banking accounts and take on debt together- buying furniture, cars and homes together. If one of these spouses were to pass away, unfortunately, they would leave their spouse alone owing all these joint debts. So on top of the pain of losing the love of their life, the surviving spouse is also saddled with the debt incurred by both of them. One person, in mourning, has to pay the debt of two. How do you prevent saddling your spouse with all the debt? Make sure you have enough life insurance to cover all the debt in your household.
$500,000 in ten year term insurance costs about $20 bucks a month for a 28 year old.* About as much as 2 movie tickets.
When you have debt that could pass to your family.
What if you are not married or have children, should you buy life insurance? In many cases, a father, mother, uncle, aunt, sister or brother will try to help you by co-signing a loan. It could be for education, a car, or even a home. Like the married couple example above, don't leave your debt to be paid by another. As we have seen, the death benefit from life insurance can cover all these debts and leave a little extra too.
$1,000,000 in ten year term insurance costs about $30 bucks a month for a 30 year old.*
Should a person under 30 buy life insurance? Yes, if they need it. It will never be cheaper and as long as you pay the premium, they can not change it or take it away from you.
To your family, nothing can replace the sudden loss of a loved one, but the Death benefit provided by life insurance will make a terrible event a little easier on their survivors It will also leave a legacy of love and caring that will last beyond your life.
*Based on a healthy non smoker.
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