Forward Bank

Life insurance is often overlooked by young adults. Many believe that life insurance is only necessary for individuals with children or significant assets. However, there are several reasons that young adults should consider purchasing life insurance.

Lower premiums

Insurance companies view young adults as lower risk, which means they are more likely to offer lower premiums. By purchasing life insurance early, young adults can lock in lower premiums for the duration of their policy.

Flexibility in policy selection

Young adults have the opportunity to choose from a variety of policies, including term life insurance and whole life insurance. Term life insurance provides coverage for a specified period, while whole life insurance offers permanent coverage and includes a savings component.

Protection for loved ones

Even if young adults don’t have children or significant assets, they may still have loved ones who depend on them financially. Life insurance can provide peace of mind, knowing that their loved ones will be protected financially in the event of their unexpected passing. This can include covering funeral expenses, paying off debt or providing income replacement.

Building cash value

For those who choose whole life insurance, a portion of the premium payments are invested and accumulate cash value over time. This can be used as a source of emergency funds, a down payment on a house or even as a source of retirement income.

In conclusion, life insurance is an important consideration for young adults even if they don’t have children or significant assets. By purchasing life insurance at a young age, individuals can take advantage of lower premiums and greater flexibility in policy selection. It also provides protection for loved ones and the opportunity to build cash value.

If you need help determining the best policy for your situation, please contact Forward Insurance today!