Any middle-aged individual with a spouse and children knows that life insurance is an important consideration. But many young adults carry around a sense of immortality well into their 30s (sometimes beyond even 40) and do not stop to consider the importance of life insurance. Many variables affect a person’s need for life insurance, but in some cases, purchasing a life insurance policy at a young age can be beneficial for locking in a low rate early on, regardless of future health changes (for a bit of perspective, poor health can result in a higher premium).
- Single young adult with no dependents: At this point in life, this person may not need life insurance yet. If you do not have any dependents, life insurance can pay for funeral expenses (which can quickly exceed $10,000) or pay off any outstanding debts upon death, such as mortgages, school loans, car loans, credit card debt etc. If this person has enough money in savings to cover such debt, then life insurance may not be a worthwhile investment.
- Single young adult with dependents: This person’s dependents may be children, aging and/or sick parents or disabled family members, for which he or she will want to ensure the continuation of care. With life insurance, the financial burden will be lifted from other family members and dependents can continue living the life they are accustomed to.
- Married young adult with no dependents: If both spouses earn a salary and have no outstanding debt, much like the first instance, life insurance may not be necessary. However, if one spouse is the primary wage earner and/or if this couple has outstanding debt without substantial savings, then life insurance should be considered as a protection to the surviving spouse.
- Married young adult with dependents: This couple should absolutely consider purchasing life insurance in order to protect the family unit in the event of a tragedy. Benefits include wage replacements to the surviving spouse in order to fund funeral expenses, pay off any outstanding debts and financially plan for future events, such as a child’s education. Life insurance is most beneficial to families, who have the most to leave behind if a tragedy occurs.
Life insurance can be purchased in cost-effective terms (10, 20 or 30 year terms), which locks in your premium and your coverage for the duration of the term you select. This type of policy often costs less than your monthly internet bill. Your independent agent can help you get started today.
Ask us if life insurance is right for you. Call Sound Benefit Solutions at (925) 244-1330 for more information on San Francisco life insurance.