Column: Life Insurance For Young Adults
[Written by Roxanne Christopher]
September is Life Insurance Awareness Month, making it the perfect time to consider the benefits of life insurance for young adults. Life insurance is often seen as a financial product relevant only for older individuals or those with dependents.
However, young adults, especially Millennials and Gen Z, have much to gain from securing a life insurance policy early in life. While it might not be the first thing that comes to mind when planning for the future, CG Life Insurance is a powerful tool for financial protection and peace of mind.
The following points outline reasons why it should be an important consideration for young adults, ensuring you make informed decisions for a secure future.
Financial Security for Loved Ones
One of the compelling reasons to consider life insurance is to ensure financial security for your loved ones. If you have dependents, such as a spouse, children, or even aging parents, life insurance can provide them with financial stability in the event of your untimely passing. Even if you don’t have dependents now, securing life insurance at a younger age can lock in lower premiums which will be beneficial as your life circumstances evolve.
Debt Protection
Many young adults carry significant amounts of debt, whether from student loans, credit cards, or mortgages. While some loans are discharged upon death, private loans are often not, leaving co-signers or family members responsible for repayment. Life insurance can help cover these debts ensuring that your financial obligations don’t become a burden to your loved ones.
Lower Premiums
One of the biggest advantages of purchasing life insurance at a younger age is the lower cost of premiums. Life insurance premiums are generally based on your age and health status at the time of purchase. By securing a policy in your 20s or 30s, you can lock in lower rates for the duration of the policy. This can result in significant savings over the long term.
Protecting Your Future Insurability
Life is unpredictable, and health issues can arise at any time. By purchasing life insurance while you are young and healthy, you can protect your future insurability. If you develop a health condition later in life, it may be more difficult or expensive to obtain coverage. Having a policy in place now ensures that you have coverage regardless of future health changes.
Supplementing Employer-Provided Coverage
Many young adults rely on life insurance coverage provided by their employers. While this is a good starting point, employer-provided life insurance is often limited in coverage and may not be sufficient to meet all your needs. Additionally, this coverage typically ends when you leave the job. Having a separate, personal life insurance policy ensures continuous coverage, regardless of your employment situation.
Peace of Mind
Finally, life insurance provides peace of mind, knowing that you have taken steps to protect your financial future and that of your loved ones. It allows you to focus on living your life and pursuing your goals, knowing that you have a safety net in place.
While it may not seem like an immediate priority, life insurance is a crucial component of a comprehensive financial plan for young adults. For Millennials and Gen Z, securing life insurance early offers numerous benefits from lower premiums to protecting future insurability. By taking the time to understand and invest in life insurance now, young adults can ensure long-term financial security and peace of mind. Come and talk with us at CG and allow us to create a plan tailored for you.
Lunch & Learn: Now is the Time – Life Insurance Matters
Please join us for a complimentary Lunch & Learn on Tuesday, September 24th at 12PM at the CG Insurance office on Reid Street. Enjoy a delicious meal while you gain valuable insights about life insurance. To register, please contact Mia Hassel at Mia.Hassell@cgcoralisle.com or 278-2884. We look forward to seeing you there!
