The older you get, the more complicated life gets. Some refer to this as “adulting” and includes things like going to work every day, paying rent, utilities, a car payment, car insurance and even student loan debt for some—and that’s just when you’re starting out in life. At this stage of the game, you probably think the only insurance you need is car insurance. This is true if you own a car—in fact, it’s legally required—but there are a couple of other types of insurance you may need too.
At this age, you’re probably in your “renting era,” so it’s a smart idea to get renters insurance. Consider this: your roommate leaves a candle burning and it causes a fire. The landlord’s insurance policy won’t protect your personal belongings. All the new fun stuff you bought for the apartment—gone—but renters insurance can help you replace what you lost, and it’s typically affordable. You may even buy a house, and if you do, you’ll need homeowners insurance instead of renters insurance.
Another type of insurance you probably haven’t even thought about is life insurance. Here are five common reasons you may want to consider having a life insurance plan, even if you are just starting out in life:
Reason #1: Your Funeral
Funerals are expensive. When you die, do you want to pass that cost on to your family? The amount of premium you would pay for a life insurance policy that’s enough to cover your funeral is typically a fraction of what your family may spend paying for it out of their savings.
Reason #2: Your Current Debts
If something happens to you, do you
want your parents to be responsible for any outstanding debt you may be responsible for?
Reason #3: Cost
Even if you don’t have a mortgage or a family now, you might in the future. As you age, life insurance premiums generally go up, so the same policy you take out in your 20s will likely cost you more when you’re older.
Reason #4: Your Future Insurability
Your health might be great now, but if you develop a serious health condition, it can raise the cost of your life insurance—or make it difficult to get coverage at all. If you lock in your coverage while you are young and healthy, you can have it for the specified term (if you chose term life insurance) or until you die or stop paying premiums (if you chose permanent or whole life insurance).
Reason #5: Your Family
If something happens to you, will your spouse be able to pay the mortgage and have enough to replace your income? A life insurance policy can help to ease the burden that your surviving spouse may endure.
Money can be tight when you’re just starting out, but there are many affordable life insurance options, and adding a companion policy like life insurance may get you a discount on your car insurance. To discuss what insurance options are best for you, contact Shelter Insurance® agent Mike Messer. He can answer your questions and help decide which plans may be right for you.
Shelter Life Insurance Company, 1817 West Broadway, Columbia, MO 65218
