Summary

The website content emphasizes the importance of purchasing life insurance at a young age, even for those who are single, to protect loved ones from financial hardship in the event of an untimely death.

Abstract

The article underscores the significance of life insurance as a protective measure for families, particularly highlighting its necessity for young and single individuals. Despite common misconceptions about cost and need, life insurance is presented as a crucial safety net. It ensures that in the event of an unexpected passing, one's family can maintain their standard of living, cover expenses such as funeral costs and estate taxes, and avoid additional financial stress. The article advises that life insurance premiums are a small price to pay compared to the potential financial struggles faced by a family without it. It suggests that purchasing insurance when young and healthy can be more cost-effective, and that relying on group coverage through employment may not be sufficient. The author also recommends consulting with an insurance professional to determine the appropriate amount of coverage, especially when children are young, and adjusting this coverage as life circumstances change.

Opinions

The author believes that the primary reason for owning life insurance is to safeguard one's family from financial distress after the policyholder's death.
Life insurance is seen as a form of protection rather than an investment from which one expects a return.
The author expresses that relying on platforms like GoFundMe for financial support in the event of a tragedy is not a reliable alternative to having adequate life insurance.
The article suggests that the cost of life insurance premiums is minimal compared to the financial security it provides to a family in the event of the policyholder's untimely death.
The author advocates for purchasing life insurance when young and healthy to secure lower premiums and better coverage options.
The author has personal experience with life insurance, having adjusted coverage amounts over time to align with life stages

Reasons To Buy Life Insurance Even If You Are Young And Single

Buy Life Insurance to Protect Your Loved Ones

It is estimated that in 2020 54% of Americans owned life insurance; 46% didn’t. Among the reasons given for not owning life insurance where it was too costly, and not needed.

Many employees have group life insurance coverage at work, but it may not be enough.

The major reason to own life insurance is to protect your loved ones.

Buying life insurance protects your family from financial ruin should anything unexpected happen to you. While you may be in perfect health at the moment, no one knows if or when an accident or serious illness will take you away. How will your family manage if you are not around to provide for them?

If you and your spouse both have an income, will one income be sufficient for your family to continue to live in the manner to which they have become accustomed?

You buy insurance for protection, not to receive a payout.

People buy vehicle insurance and home insurance for protection, but the majority don’t want to receive a payout from the insurance company. No one wants to be involved in a traffic accident or to have his home damaged in some way.

Similarly, you buy life insurance out of love for your family so that if you pass away suddenly they will not have to struggle financially.

When the major breadwinner is no longer around, a family suffers great hardship without adequate funds.

In addition to the pain caused by death, the family will have to deal with the funeral and other expenses. Depending on the jurisdiction, estate taxes will also have to be paid. Legal and other fees may also have to be paid. A lack of adequate funds will add a great deal of stress to an already stressful situation.

GoFundMe has become a popular site to raise money for disasters and other worthwhile causes. However, this should not be viewed as an alternative to adequate life insurance.

Cost of life insurance

The premiums you pay are nothing compared to what your family will have to suffer if they lack sufficient funds. Premiums are based on several factors including age and the state of your health.

Therefore, it’s wise to buy life insurance when you are younger and in great health.

If you have group life insurance at work, you may be able to increase your coverage by paying for it. Take advantage of that option if it’s available. Generally, the cost of that extra group coverage will be lower than if you bought the same coverage outside of the group.

How much coverage is enough?

In my opinion, the younger your children the greater the amount of coverage you should have. Discuss this with an insurance professional.

Final Thoughts

I have always had what I considered adequate life insurance coverage. I bought my first policy from my Dad’s friend not too long after I got my first job.

When my children were young, I was covered for a large amount. I shared the amount of my coverage with someone who told me, very unkindly, that I was worth more dead, than alive.

I made adjustments to the amount of coverage over the years and when I retired I made another adjustment. It’s probably the final adjustment, but one never knows what lies ahead.

I see many insurance ads on TV. I recommend speaking with an insurance professional and having all your questions answered before making your decision.

The best time to buy life insurance is today. Life is unpredictable and can change in a flash. Do it now before it’s too late.

Here is a great article by my Medium friend Olivia Marlene on how she used insurance to protect her family in case of untimely death.

Preparing for Untimely Death Should Be Part of a Solid Financial Plan

It’s expensive to die

medium.com

Reference: 54% of Americans owned life insurance in 2020.

Disclaimer: This article is for informational purposes only and should not be considered Financial or Legal Advice. Consult a financial professional before making any significant financial decisions, and consult an insurance professional before buying insurance.