If you are single, twenty-something or in early-thirties —a millennial, you have probably asked this question at some point in time when an agent offered to you a life insurance product.
Being at the early stage of working life, you have various personal aspirations and a strong desire to experience everything. You’ve got some adult responsibilities as well —maybe you’d like to give back to your parents or you’re planning to build your own family in the near future. You think you need only investments but not life insurance. you mistakenly believe the latter is only for your parents.
Here are the reasons why you should get life insurance even if you’re young and single:
You support your family
You may be the eldest of the family who supports the studies of your younger sibling/s or you pay for your home’s utility bills. As long as you provide financial support to your aging parents and family members, consider life insurance. What will happen to them when your income stopped due to an unfortunate event such as death? Life insurance can ensure the future of those you care for.
It’s not only about death
Life insurance products come with riders that can provide coverage for accidental disability and dismemberment, critical illness and hospitalization. These are life risks that can happen to anyone at any age, which can provide negative impact to your family’s financials when you are unprepared. Imagine if you are only focused on investments and then a serious illness strikes, will your investments be enough to help you get cure and to recover? Critical illness benefit is guaranteed and does not need time to accumulate.
To take advantage of cheaper rates
If you do not provide support to anyone right now, then you don’t need a huge sum of amount as life coverage, but you may eventually need it especially when you will have a family to care for in the future. Premiums are dependent on age —the younger you are, the less you’ll pay, so why not lock in your rates right now and save a major difference in premium rates?
You are healthy
To get approved for a life insurance policy, you will be assessed for your insurability, which includes underwriting of your current health status.You can only be insured when you don’t need life insurance.
“Life insurance is like a parachute, the moment you need it, you have to have it…or there’s no second chance.”
There is a bonus investment
Variable Universal Life (VUL) insurance comes with investment which is similar to mutual funds. Portion of the premium will be placed on funds —either stocks or bonds, which have projected returns greater than bank savings account and inflation rate.
Life insurance should be prioritized before investments because the latter is not guaranteed and requires time to grow. If you do not have either yet, VUL is the best plan because you are hitting two birds with one stone.
If you are still young and single, don’t overlook the need for life insurance. Remember, unfortunate life risks are uncertain, the only thing you can do now is to be prepared.