In days gone by, life insurance was purchased by individuals to pay off the house or pay for college education in the event of an untimely death of a spouse. Something for “the kids” should mom or dad die early, and as a bridge of income for a surviving spouse, as it’s quite a blow to lose a primary wage income. But over the years, life insurance has lost some of it’s popularity…especially with the millennial generation.
The above examples may now be exceptions to the rule, given an increased longevity well into our 80’s and 90’s. So what expenses could we all be faced with one day? How about Funeral expenses, Medical bills, Consumer debt and Car leases. A very personal moment is when my mother passed away at age 54 in a car accident that totaled her car. She had not purchased accidental death coverage when signing the lease documents, so I inherited paying off the value of the car. Thankfully I was able to do that through the proceeds of her life insurance policy. Unlike most of her peers (single, grown kids, retired), she had an individual life insurance policy for unforeseeable financial circumstances. This was definitely, one of those.
I am concerned about the lack of life insurance owned by my clients. Often adults in their 40’s and 50’s have the desire to purchase policies, but no longer the superior health status to make it affordable. That luxury passed along with their youth. What is that old saying…. youth is wasted on the young? Not so with my younger clients, as they are among the brightest people I know! It’s just a lack of education regarding the long-term need and benefit of insurance that is to blame.
So what is the upside of investing in life insurance as a young single professional? You buy it for tomorrow, and the challenges and lifestyle choices your future-self will make. It’s a gamble, a risk that it might not be needed, but it can also be a game changer, a financial windfall that can positively affect the course of someone’s future. You insure your house, car, apartment…so why not your life? I’m always interested to talk about this and other considerations surrounding your financial well being.