By Emily Levine
A great misconception of many young adults who are single and with no children, is that they do not need life insurance. The truth of the matter is that any adult, married or unmarried, with or without children, can benefit from having life insurance.
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Most of the time an employer will offer a life insurance policy, it is understandable to want to take advantage of this as it is a great place to start. However, there are a few things to keep in mind. Most group life insurance policies are not portable, so if you leave a job that benefit is no longer there. For young people, this can be a large concern because not every young person is planning to spend the rest of their life working for that company.
One of the biggest concerns when it comes to life insurance is funeral costs. If a person does not have life insurance, who will be paying for their funeral? Would you want your children and grandchildren having to put their hard earned money into your funeral? What if that person owns a house, who will pay the mortgage? If there are people in your life who are financially dependent on you, what would they do for a source of income?
The premium amount of life insurance increases about 8 to 10 percent of every year of age. So, the older you get without life insurance, the more expensive it will be when you do decide to purchase it. In addition, the older a person is the more tests they will need to have done. A 44 year old applying for life insurance will be required to do a blood and urine test. A 45 year old applying for life insurance will be required to have a resting EKG along with the medical exam as well as blood and urine tests. The time to invest in life insurance is now, while you are young, healthy, and maybe undecided about your future, but rest assured you know the people you love the most are taken care of.
