Most single people under the age of thirty don’t think that they need life insurance. Why bother? They don’t have a spouse or kids that need to be taken care of in the event of a tragedy, so it seems like a waste of money. There are a few situations, though, where life insurance would be beneficial. Here are five things to consider when making the decision.
- You have unpaid student loans. College debt is one of the biggest reasons why someone under thirty should have a life insurance policy. If something happens to you, then that debt might get passed on to your family, especially if they cosigned on the loans. A life insurance policy would help to settle the debt.
- Coverage is cheaper when you’re young. Life insurance policies are usually based on the health and age of a person. If you sign up while young and in good health, you might be able to lock in coverage at a lower rate.
- You have credit card debt. Most young people are working on establishing credit, and sometimes it can get a little out of hand. Just like with student loans, if something were to happen to you, your family might be responsible for paying off your creditors.
- You want a loan for a small business. Sometimes a life insurance policy can make getting a business loan a little easier, because the loan is protected by the policy and can secure the debt.
- You have aging parents who depend on your income. If you are the primary income provider for your parents, siblings, or anyone else in your family, then life insurance is as important as to you as it would be to a parent with kids.
Life insurance is something that we never want to think about, but it’s important that you consider your options, not just for yourself, but for your family.