Think you’re too young for life insurance? You’re not alone. Millennials are the least likely generation to own life insurance, yet 4 in 10 Gen Y households would have immediate financial trouble if the primary breadwinner were to die.

In a previous entry, we discussed who needs life insurance in Nashville. Among young adults, it’s a common misconception that only established professionals with families need life insurance. This couldn’t be further from the truth. No matter your age, working with an insurance agent in Nashville will ensure your loved ones are protected in the event of an untimely death.

Why Single, Young Professionals Need Life Insurance

Though mortality is far away from most 20- and 30-somethings, it’s still important to guard against the unexpected. Life insurance provides more than financial security; it ensures peace of mind.

  1. You still have student loans. Student loan debt tops $1 trillion, easily outweighing the credit card debt held by the rest of the nation. If you were to die with student loan debt, who would fulfill that burden? If you have a co-signer such as a parent, the responsibility would be on that co-signer. Purchasing life insurance can protect your loved ones from paying off your expenses.
  2. Your parents are dependent on you. The older you get, the more likely your parents will depend on your income. Though we don’t often think of young adults as individuals with dependents, the reality is that many single, young folks are financial support for parents, siblings and other relatives.
  3. You’re planning your financial future. While life insurance is certainly a death benefit, it can also be utilized as part of a retirement or financial wealth strategy. Most permanent life insurances will build cash value over the years, becoming an integral part of a long-term financial plan. This cash value can be used to supplement the funds used for retirement.
  4. You are healthy. Buying life insurance while you’re young and healthy can lock you into those rates, even if you develop health issues later in life. For instance, an individual who purchases life insurance and develops diabetes later will pay less than an individual who purchases life insurance after being diagnosed with diabetes.
  5. You can afford term life insurance. Discounts and affordable pricing for term life insurance are readily available to young healthy adults. Since young adults are least likely to use life insurance, the rates are generally far more affordable for this demographic.

A life insurance policy is something that a young adult will hopefully never use, but it’s still a critical component of your financial and life planning. Working with an insurance agent in Nashville will help you determine the best policy to safeguard your loved ones as well as your long-term financial health and stability.

Contact Royce Williams today to discover the life insurance options available to you.

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