As a single adult, it’s still essential to have a life insurance policy to protect yourself and your loved ones.
While you are a young adult, life insurance may be one of the last things to cross your mind. Single adults need term life insurance because you never know when something could happen. You, unfortunately, can’t predict when you are going to pass away, so you have to have a plan in place. In addition, term life insurance policies are inexpensive and can be a great way to get your foot into the door when it comes to insurance. Dive into these reasons as to why single adults need life insurance just as much as families do. There is no one-size-fits-all for insurance policies, so it’s crucial to evaluate your own life and needs before purchasing a plan.
Plan for the Future
Before you decide on any insurance plan, it’s important to understand why single adults need term life insurance and what kind of options there are. Term life insurance is the most straightforward and affordable insurance policy available. The policyholder will decide on a specific period for which they would like the policy, which is usually anywhere from 5 to 30 years. After the policy expires, the policyholder has the chance to renew the policy, switch the policy to a whole life plan, or find a new policy altogether. If you die before the policy expires, your beneficiaries will receive your payout.
A term life insurance policy is beneficial for planning for the future because you can ensure that your loved ones are not burdened with your debts or funeral costs — which we will dive into deeper. It’s essential to always plan for the unexpected and understand that you can’t live forever. In addition, term life insurance policies are incredibly inexpensive, making it a no-brainer to discuss your options with an insurance agent.
Lock in Low Premiums
When it comes to purchasing life insurance, there is a process called underwriting. The underwriting process is where the insurance company determines how big of a risk you are and how much of a premium you should be paying. There is usually a medical exam with underwriting to determine your health and any issues that could lead to death during the term. When you are younger, you are usually a lot healthier than you will be in the future. So it’s crucial to be as healthy as possible to receive the most affordable rates.
Your health is not the only aspect that insurance companies examine when they are deciding on your premium. Your age is another factor that plays a prominent role. Every year that you get older, rates will generally increase anywhere from 8-10% in price — which means it’s never too early to buy a policy. Other parts of the underwriting process include what career you have, gender, if you are a smoker, and more.
Cover Your Debts
As a young adult, you might have a few debts in your name. Whether it’s student loans, a business loan, credit card debt, or a mortgage, these can all be protected with a life insurance policy. If you were to die when you still had debts to pay off, they would be passed along to a loved one or cosigner. But, of course, no one wants to put that burden onto another person. With a life insurance policy, you can take out a plan that covers the costs of your debts — don’t forget to consider the interest rates. Your debts are not something you want to leave to someone else, so a life insurance policy is fundamental.
Pay Final Expenses
It can be extremely costly to have a funeral and burial, and they can be thousands and thousands of dollars. Using a life insurance policy for your funeral costs can take that burden off of your loved ones. During your death, they will be mourning, and the finances of your funeral will be something they can have a hard time processing. Pre-paying for your funeral and burial will also ensure that everything will be done the way you wish it to be done. As a young adult, this is probably a hard reality for you to grasp. But if you were to pass away at a young age, it can be even more difficult for your family to quickly come up with the money in a time of unexpected mourning if you do not have life insurance covering the costs.
As a single adult, term life insurance is something that you need. It could secure you and your loved ones and ensure a plan is in place if anything happened to you unexpectedly. Fabric has been designed for young adults to quickly and easily receive term life insurance quotes, write wills, and plan their finances. It’s the ultimate place to tackle your financial to-dos so that you can get back to your daily life. Check out more information about Fabric and find affordable life insurance quotes in as little as ten minutes.