subject: Should you insure your life when you're young and single? [print this page] Should you insure your life when you're young and single?
Ask a single person with no children whether they think of insuring their life. The reaction will definitely be in the range of surprise and disinterest. It is believed that the main reason for insuring one's life is having a family and children, who will need the death benefits of an insurance policy in order to sustain the financial stability in exceptional situations. And it's evident that young people, who do not have spouses or kids don't even think of purchasing such insurance policies since they don't really need it. But the facts can be quite sobering if you look at them from the right perspective: The leading causes of death for people aged between 20 and 34 in the US are accidents, murder, suicide, cancer, HIV and heart diseases. None of these causes can be prevented nor predicted, which makes them unforeseeable - exactly what insurance is there for. When speaking of people who are older there's a higher risk of certain health conditions and overall life expectancy that is generally lower than that of younger persons. However, the risks younger people face make them as likely to need insurance as their older peers, because it is impossible to predict such things as accidents. But there are other reasons for insuring your life at a younger age. One of the main reasons for getting life insurance while you're still young and healthy is the economical aspect of insurance premiums. When you're young and don't have any serious health problems your premiums will be much lower than at a later stage of your life when your life expectancy decreases. And by getting life insurance earlier you will be able to keep the affordable premiums for a longer period of time rather than buying the policy for a higher price later on. Term policies are well suited for this purpose, since they have lower premiums that whole life policies and can be converted to permanent policies when the term expires. Another reason for considering a life insurance policy is the situation when you take a long term loan or credit. Things like mortgage loans are paid out in decades and by the time you pay it out in full you may find yourself having family and children, and your parents may require additional security as they'll get older. In such a situation it is very good to have insurance coverage if something bad happens and you won't be able to pay out the loan in full. In fact, some lending institutions require their customers to purchase insurance in order to assure that the debt is settled no matter what. There are even special policies that link the amount of coverage to a customer's mortgage loan balance in order to make sure that the policy will pay it out in full if something happens to the policy owner during the payout period. So the next time you're offered to insure your life, take your time to think it all over. Maybe there are good reasons for you to get an insurance policy even if you're still young and single. You never know when you'll start a family or have kids, and having your life insured in such circumstances becomes more crucial. Keep in mind that you never know when exactly you will require this form of coverage and it's always better to have it than not.
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