o one wants to think about his or her own mortality, especially the young and healthy.
However, individuals in their 20s may want to consider it.
That’s because the best way to get the right kind of life insurance coverage when you need it is to buy it when you don’t.
Following are three good reasons to consider buying life insurance when you’re relatively young:
You Have Debt:
Debt includes mortgage, student loans and credit card balances.
If you died in an accident, who would pay off your debts? Your parents? Life insurance ensures that you don’t become a financial burden to those you love.
You Have Dependents:
Who depends on you? A partner? A child? Other family members? And how would they fare if your income disappeared?
Would they be able to live and retire on their own?
Life insurance ensures that they have time to get back on their feet.
It’s Cheaper When You’re Younger:
Waiting until you need life insurance is the worst time to buy life insurance.
That’s because the rates go up as you age. Buying now locks in affordable premiums for decades to come.
If you don’t have life insurance and want it, you’ll need to calculate how much you need.
Even if you’re covered by life insurance through your employer, you may want to find out how much is provided and determine if you need more.
One rule of thumb is to take your family debt, add $20,000 for funeral and taxes, add $60,000 per child for education, then add 20 times the annual income you want to replace.
That may sound like a significant amount of life insurance, but again, when you’re young it’s relatively inexpensive - and what better place to put a little of your insurance money?