How Much Life Insurance Should a Young Person Have?
Traditionally, young adults have waited until they get married or start a family to buy life insurance. But recent statistics from U.S. News & World Report indicate that the number of young, single people buying life insurance is on the rise — and with good reason.
“Depending on what assets they have, we often recommend that young people buy life insurance,” says Lance Bond, a Texas Farm Bureau Insurance Agent in Brownwood. “They are surprised to find out how inexpensive it is.”
Bond says one of the main reasons that young adults should invest in life insurance is so that, in the event that something happens to them, there will be enough money to cover any associated costs. Young and healthy customers will find that the cost of a policy is extremely affordable, and in most cases, term life insurance is their best choice. Consulting with an insurance agent can help buyers determine the type of policy that best suits their individual needs and determine exactly how much coverage is needed.
In general, a young, single adult who is not in a relationship will need enough coverage to pay any end-of-life expenses. If they offer financial or care-giving support to parents or other relatives, they may choose to have the policy cover that as well.
“Basically, they don’t want to be a burden to their parents or other family if something should happen,” Bond says. “Someone is going to be responsible for paying that, and insurance is a good way to make sure it’s covered.”
