Young And Single In Good Health, But You May Still Need A Substantial Amount Of Life Insurance Now - Choosing Better Insurance Coverage
Are you a young and vibrant single adult? You may have thought about life insurance and wondered why it is a good idea to have more than a small policy on yourself at this stage in your life. Many young people feel as though there may come a time when they need life insurance, but they may presently view the investment as an unnecessary bill due to their current state of vitality. The following are a few situations that warrant getting substantial life insurance in your youth.
If you have minors that you are responsible for taking care of or even an elderly family member, you need to take the time to consider what will happen to them if you pass away prematurely. Perhaps they rely on you for all of their care, and this is something that someone else will have to assume responsibility for. Life insurance will mean that some of the financial burden involved with their care can be relieved when the insurance benefits are released. You also need to consider future expenses such as college if you have minor children. Despite your absence, you can ensure that your child gets a good education if you have enough life insurance, and they are named as a beneficiary.
You consider yourself savvy when it comes to making sound financial decisions.
If you are in good health and not a smoker, you will likely find that policies are cheaper. Many life insurance providers have rules that pertain to them not raising rates. The older you get, the more you will likely pay for a life insurance policy. Perhaps you doubt this, but a life insurance broker can be used as a resource to verify this detail. They can also provide you with simulated rates for you to compare. For example, they could gather information about you and compare rates to an older person with similar traits. Buying a policy now and keeping it long term is a sound financial decision you will appreciate when you get older.
You have bills that you share with someone else or unpaid debts.
You do not want to leave a burden on your surviving relatives. Unpaid debts can be problematic for your estate even if you do not own a lot. If you pass away and you share a bill with someone else, the creditors will pursue that person for the unpaid debt. For example, a family member may have co-signed on a loan with you, and if you pass away, the creditor would expect the family member to pay the loan. This also applies for big-ticket purchases such as mortgages and car loans.