3 reasons I’m buying life insurance even though I’m young, healthy, and single with no kids

 

Typically, people think about buying life insurance right around the time that they get married and start thinking about having kids. At face value, that line of thinking makes sense. After all, a life insurance policy is meant to help the people who depend on you financially — like your spouse and kids — replace your income in the event that something happens to you.

However, by waiting that long, you might be doing yourself a disservice. Personally, I’m not married (yet) and I don’t have any kids, but I’m still looking into buying a term life insurance policy now. Here’s why.

You’re the youngest you’ll ever be

The amount you pay for your life insurance premium is determined by a variety of factors, and each carrier will weigh those factors differently. However, one factor that all carriers will take into account is your age. They set your premium based on your assessed risk level, so unfortunately, the older you get, the more you can expect to pay.

With that in mind, there’s no question that now is the time to buy. After all, you’re currently the youngest you’ll ever be, which means the rates you’ll be offered will be the cheapest you’ll ever see. For reference, Policygenius estimates that rates increase by an average of 8%-10% per year as you get older.

You’re probably the healthiest, too

Another huge factor in determining your premium is your overall health. Generally, the process of applying for life insurance involves getting a physical that includes checking your height, weight, pulse, and blood pressure, as well as drawing your blood and collecting a urine sample. In some cases, the company may also ask for a list of any applicable diagnoses and prescriptions.

If you’re young and relatively healthy, this medical exam should be a breeze. However, the older you get, the more likely it is that you’ll be diagnosed with some kind of health condition, potentially something that could end up raising your premium or even excluding you from coverage altogether.

You probably already have debt

If you have private student loan debt, odds are you need life insurance. If you have federal student loans, a surviving family member can request that the debt be discharged in the event of your death. If you have private student loans, though, that may not be possible.

You’ll need to read through your loan servicer’s policies to know for sure. While some companies will discharge debt in the event of death, others will assign it to a surviving family member, especially if the family member is a cosigner on the loan. A life insurance policy can help cover those costs.

#lifehealthadvisors #areteautomation #healthiswealth #decision #life

Credits: Tara Mastroeni
Date: April 14, 2020
Source: https://www.businessinsider.com/personal-finance/reasons-for-life-insurance-even-though-im-single-no-kids-2020-4


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