Do young people need life insurance?

Life insurance is one of the most important pieces of a solid financial plan but many young people might think they don’t need it.

Here are several things to consider when making a decision on whether young people need life insurance.

Student loans

If a young person has a cosigner on their student loans, life insurance is definitely something to consider.

Student loans could easily amount to tens or hundreds of thousands of dollars. If a parent or other family member cosigns for student loans, they will still be responsible for paying them in the case of the young person’s death. It is therefore important that cosigners are financially protected.

Mortgage

A mortgage will likely be the biggest debt we ever take on. If a young person has someone that depends upon them to put a roof over their head, they should purchase a life insurance policy that will cover their mortgage.

Older dependents

Many young people help out with the costs of caring for parents, grandparents, or disabled family members who may be unable to cover their medical needs or living costs on their own. With a life insurance policy, young people can make sure their older dependents will be financially secure should anything happen to them.

How much life insurance is needed?

Someone in their mid-twenties may pay around $50 a month for a term life insurance policy that would pay out $1 million upon death within the next 25 years. There are many different policies available but for a young person in good health, life insurance is very affordable.

To figure out the right policy for you, or the young person in your family, make an appointment to speak with an expert at John B. Wright Insurance.