Short answer: No!
Smart answer: Yes!
Okay, we get it, you’re young and single without a care in the world. Maybe you’re fresh out of college and about to embark on a new career, thinking that THE WORLD IS YOUR OYSTER. It could be that the only excess money you have is going towards saving for a new car and/or adding to your extensive wardrobe. Or, maybe you never envision yourself settling down and starting a family…single life is the good life. Right?
For some, yes. For others, that special someone will arrive, and then BOOM! American dream, 2 kids, a husband/wife, mortgage, and a lot of unforeseeable responsibility.
The point is, we don’t know what the future holds.
Regardless of your specific situation and plans for the future, nowadays many forward-thinking single, young adults are considering life insurance now, and here are the reasons why:
Life Insurance is cheapest when purchased young/healthy. While a lot of younger, single individuals may have other priorities, the need for life insurance may become incredibly relevant later in life. Even if you’re currently single, it may be a smart decision to buy life insurance now to lock in your good health and young age…the two primary factors life insurance rates are based upon.
Permanent Life Insurance can be an efficient savings vehicle. A conversation that many people need to have, but have been putting off, is one about long-term financial security strategizing. A lot of my clients earn decent incomes, but are unsure where to invest in a safe and secure manner. Do you want to put your retirement savings/investments into a product that is at risk to market volatility? Sure, maybe if you’re a gambler at heart. But if not, permanent life insurance can be a valuable solution. Utilizing this type of life insurance policy as a savings and investment vehicle has numerous financial advantages. Some of the most beneficial consequences of life insurance include tax free growth, guaranteed cash values, guaranteed death benefits, as well as the creation and protection of one’s estate. Implementing this type of strategy early on in life has very impactful results that can lead to lifetime financial security.
Burial costs and debts. Knock on wood, but if you were to pass away, who would pay for your funeral? Today, the simplest of funerals can be costly. Without life insurance, someone else (e.g., your relatives) will have to foot the bill. Even the smallest life insurance policies can address this concern by covering these costs, or any other excess debts that you may leave behind.
The bottom line…On the surface, life insurance may not be for someone without dependents. However, it can definitely have many advantages for those who are looking to start saving money safely and those who may eventually start a family.
The above was a guest post by Jesse Bustos who is a Financial Services Professional at MassMutual Financial Group. Mr. Bustos advises individuals and families in Los Angeles and Orange County on how to incorporate insurance as part of their wealth management strategy. He can be reached at 714.602.2961.
At Snyder Law, we firmly believe in the importance of developing wealth management teams and building trusting relationships with families for life. If you are need of such a team or in search of trusted advice regarding life insurance, saving for college or retirement, or other wealth management strategies, Snyder Law, PC has a network of partners that can help explain life insurance and other alternatives to help identify the best strategies for you, your family, and your loved ones.