Key Takeaways
- When you’re young, you may not think about the need for life insurance.
- However, your younger years are a good time to get life insurance.
- There are a number of reasons for getting coverage sooner rather than later.
When we’re young, we tend to think of ourselves as immortal, or at least many, many years away from death. However, this past year has changed that for a lot of people, regardless of age. With COVID, there’s been a heightened awareness about our mortality. And this awareness may be a good thing, when it comes to putting a spotlight on life insurance.
If you haven’t gotten life insurance yet, here are five key reasons to consider getting it now.
Number one, there’s the cost. It’s really inexpensive to purchase life insurance when you’re younger. In fact, for a 30-year-old person in good health, a million dollars of term coverage, paid for over 30 years, costs roughly $1,000 per year. It depends on your condition, but it’s generally not very expensive.
Number two, you could become uninsurable in the future, should you develop a medical condition. So get the coverage now, while you’re insurable.
Number three, if you’re planning to start a family, you’ll want to ensure you have the necessary life insurance. It’s expensive to raise children, so it’s a good idea to get coverage before you have children.
Number four, if you’re the primary wage earner in your family, make sure you’ve got enough insurance for your spouse and children.
Number five, consider what it would take to replace your income. In the insurance industry, the general thought is that a younger person would need about 15 to 20 times their annual salary as their insurance amount. This would basically be the amount needed to cover expenses going forward.
So give these five areas some thought and consider buying life insurance, if you don’t already have it in place. Until next time, enjoy.
If you’d like to read more on this topic, here are a few of Gary’s previous posts that you might enjoy:
Gary