You gotta love the insurance industry. Young life insurance agents going out trying to sell life insurance to young professionals. New agents who pass a simple exam giving advice with no prior experience. Sure there are many who need life insurance but at an age (younger than 30) when young professionals are barely making a living there are more practical things that need attention, just a few include; trying to pay off student debt, saving for a house, and building an emergency fund.
Although there are many reasons most young professionals don’t need life insurance there are 3 circumstances where it might make sense for you:
1. A Personal need – Funeral expenses, so others around you don’t suffer to come up the funds in case you were to die. The average cost of a funeral is $7,000 (nfda.org).
2. Family/Our dependents – Living expenses, would be education savings and would be retirement savings/income. How much do they need if something were to happen to you? Could they live comfortably or will your dependents need to work an extra job to cover expenses and have the same lifestyle they were living?
3. Business needs – You can’t leave your partner out of luck if something were to happen to you. Consider setting up a plan for insurance on each other so he can at least get back what he invested in the company.
If you do have any of the above, then you can find some help from an independent agent and look at how much you can afford. This will be a big factor into the types of life insurance products you should purchase. It is not advisable to go to anyone who is paid to sell you one specific product.
If you are young, not married and have no dependents, then investing your money on life insurance may not be appropriate. Instead, you might consider saving your money for more practical things like, retirement or that first house you’ve wanted. Your money may be better spent in other ways.
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