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4 Reasons Why a 20-Something Should Have Life Insurance

three young people jumping up

By Selene Garcia | October 17, 2018

You’ve already come up with a bunch of reasons why not to get coverage, but the truth is life insurance isn’t for the dead, it’s for the living. You might think you’re too young for life insurance and maybe you’re right, but let’s first take a look at the reasons why a 20-something should have life insurance then you can decide.

1. Dying is expensive…like double-digit thousands expensive.

Here’s the deal, the cost to die is more expensive than you can imagine. Check out how much it costs to die in your state. Where does your state rank?

Shocking isn’t it? Well, you’ll be even more surprised to know that dying in a hospital will add to the already insane ticket price.

Of course, there are other more affordable options…cremation or a garbage bag with twist tie – both great choices. Whether you choose a full-blown funeral or “the bag”, someone has to pay for it – but WHO?

2. Burdening your grieving friends and family sucks.

You’re gone now and friends and family are a grieving mess, but the living go on with their daily lives…paying taxes, stressing over student loans, paying down credit cards all while trying to save for the future. You know, all things 20-somethings worry about. But, you’re dead, so who is going to manage all of this?

To be clear, not all debt dies with you. Here’s the deal,

  • Remember the loan you needed for school? If you had a co-signor (maybe it was grandma), you’ve left her with that liability. Now in your death, you’re digging into grandma’s pocket.
  • How about the credit card you got to help build your credit? You needed some well-established credit to back you, so you roped-in a partner and you’re both the proud owners of a shiny new credit card account. Well, while you’re off taking a dirt-nap, your well-established partner will be stuck paying the principal and interest on that latte from 2 months ago.
  • Did you know that taxes will need to be paid on your income? Oh, you thought taxes died with They don’t.   Someone will have to pay them.  Presumably the people you care about.

3. Your loved ones need time to mourn…then get back to work? NOW!

Now that you’re clear on how to leave your friends and family holding the financial bag let’s give them time to mourn. But, who can afford to take time off and pay for your funeral costs, credit card, student loans and taxes?

While you may be able to prattle off the 5 stages of grief – there is no timeline or order to those feelings. When an aged person leaves us it’s sad, yet expected (people are prepared). When a young person dies, the devastation is a vast wave swallowing up anyone in its path. It’s a reminder of our mortality – it’s a reminder that it can happen to anyone. In this case, the ‘anyone’ is you and it’s your friends and family working through the loss. How much time would you need?

4. You’re already saving. Make life insurance part of your diversification strategy.

Life insurance is just another great way to diversify your investments. For example, a whole life insurance policy (one you can keep your whole life) can be affordable, and the benefits with this type of policy make it worth every penny – check it out:

  • You can keep that policy your entire life at the same premium (based on your young age now) without having to take another medical exam. This means if you have a heart attack at 40, it won’t affect your coverage or premiums.
  • The policy can build cash value that grows pretty large over time.
  • Borrowing from the cash value is a thing and it’s tax-free! Tax-free – that’s insane.
  • Provided there is enough cash to pay, you can even sometimes use your cash value to pay the monthly premium.

The best part of all of this? The IRS can’t touch the death benefit. One more time – in the event of your death, loved ones usually don’t have to pay taxes on the life insurance payout.

With life insurance, you can continue to add layers of protection and build a nest egg while protecting your family – remember the living. One day it might be more than just your parents…partner, kids, pets. They’ll all be depending on you.

Look here’s the deal, life is unpredictable – anything can happen at any time. If you’re interested in something more than a twist tie, get a quote and get clear on your affordable options. I mean seriously, you’re probably spending more on coffee.

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