It may seem pointless to get life insurance when you’re under the age of 30. After all, if you have a family with a spouse and two kids, but no medical problems, it may seem like a waste of money to get life insurance since you could use the money for other things for your family. However, there are actually a whole host of reasons why someone in this position could really use life insurance. Here are a few examples.
People Depend on You
If you have a family, then you have people who depend on you and your income in order to survive in the long term. You have to make sure that you provide for their future no matter what happens to you. Having them depend only on you for income creates a single point of failure. Even if you don’t have any medical problems, bad things happen to people all the time. You’re going to want to make sure that if something unforeseen does happen to you, that your family will have something to survive on if you’re forced to disappear from the picture.
It’s like a gift you give to your children in the future and that will be delivered no matter what.
If you have a business but end up dying right in the middle of some deal that would be lucrative but requires sustained earnings to pull off, your family will have trouble handling whatever money is required to continue the business. However, if you have life insurance, then you can get around this problem by giving a windfall to your children that they can then use in order to handle your business, regardless of what happens with it, whether this includes keeping it going, paying debt to sell it off, or whatever else.
Speaking of unforeseen things happening, this is a problem even if you don’t die from it. Perhaps you will get some illness at some point, or there will be a problem with mortgages, college loans, or something else that piles up. This debt may not automatically vanish upon your death. Some of it might, but definitely not all of it, especially when it comes to loans. Your estate will have to keep paying it out, as will anyone who cosigned the debt. AS a result, this could really limit what kind of funds you’re able to transfer to your children and heirs. However, if you have life insurance, this could instead help to even everything out a little.
Getting Lower Rates
If you go in for life insurance at an earlier age, you’ll be considered a lot safer to insure, so you can get much more favorable rates. You can lock in this rate for many decades, so it’s still the rate you’ll be paying even when you’re much older, as opposed to someone who got the rate when they were older who won’t be able to get rates that are nearly as favorable. This way, you end up being able to transfer more to your children that what would be possible otherwise.
Another thing to consider here is that you never know when you’ll have a medical problem that you only discover later on. As a result, you may be uninsurable if you wait and a major medical problem pops up. By getting insured when you’re still quite young, you’ll lock in a rate regardless of what ends up happening to you down the line.
Overall, it definitely pays to be prepared and if you can get prepared really early on in your life, then you’ll be more likely to end up with better outcomes all around then if you waited too long and couldn’t deal with these life events that tend to crop up.