In their twenties, life insurance is the furthest thing on an individual’s mind.
It is at this point in life where people are still likely enjoying their newfound independence, their earnings, and for many, their freedom. However, individuals in their twenties may want to rethink their priorities and consider getting themselves insured at that age. This is because your twenties are the best time to get life insurance for protection as your health declines as you age.
The longer you put it off, the greater the eventual cost will be. To illustrate, an average twenty-something or thirty-something individual can expect to pay somewhere between five hundred pesos a month to two thousand pesos a month for a term life policy. Of course, the amount you pay significantly depends on the kind of coverage you choose, but regardless of that, the fact is most life insurance policies cost less than a gym membership. More importantly, this is used to protect your family’s financial stability should anything untoward occur to you. If you remained unconvinced, however, below are just some of the reasons why you may need life insurance:
1.) You have plans on getting married
A true hallmark of an individual who cares about their future spouse is one that is insured. Of course, before you say your I do’s, there are questions you need to consider—and one of those is whether or not the partner you are choosing to bind yourself in a lifelong commitment with is insured. Moreover, you need to determine whether you will have individual or joint-life insurance policies. These are the things you need to discuss with your partner before even considering marriage. Remember, should anything happen to either of you, the surviving partner would have to answer the remaining financial liabilities left behind.
2.) You wish to have kids or already have children
If you have dependents, who rely on your income, getting yourself secured with life insurance is paramount. A child’s birth is usually one of the strongest motivators to get life insurance coverage. This is because individuals are thinking of getting life insurance to cover mortgages, education, and other expenses that would sustain their family should they meet an untimely demise. If you wish to have kids in the next year, now is the perfect time to buy life insurance.
3.) You are supporting aging parents
In a perfect world, your parents should have already purchased life insurance as part of their retirement plan. Unfortunately, there is a significant number of older individuals who have not given life insurance much forethought. That said, if you are caring for any ill or aging parents at home, having life insurance with a long-term care rider will go a long way in helping you defray costs.
4.) You are self-employed or have a family-owned business
If you are vital to keeping the business running, your disability or untimely death can cause a myriad of financial woes when revenue goes south. It is recommended that you have a business-owned life insurance policy and business-owned disability insurance to have in place where the beneficiary is the business so it can continue.
5.) You have a high-risk job
If your employment involves high-risk scenarios or if you work in a highly precarious environment, you have a greater chance of dying while at work than someone who sits behind a desk all day long. Professions in aviation, construction, firefighting, mining, and the like will almost result in higher premiums. Keep in mind that even if you have employer-provided life insurance, leaving your job means you will lose your coverage. Moreover, your coverage may not be enough. That said, it is recommended that you select a coverage that is ten times your actual income as your death benefit.
Published by Anna Wrench