Many individuals assume that life insurance is unnecessary until they have a family of their own. But this is not always the case, as life insurance is not a one-size-fits-all type of insurance.
You might find that buying life insurance at an earlier age than previously expected is a better option for your circumstances. So what exactly determines one’s need for life insurance?
Life insurance, in its most basic form, is designed to pay benefits to your dependents in the tragic event of your death.
These benefits are most commonly used as a form of wage replacement to allow the surviving spouse and/or children to maintain the lifestyle that they’re accustomed to living. But these benefits can also be used to pay for funeral expenses, medical expenses and erase debts from mortgages, car loans, student loans and credit cards. The benefits can also be designated to pay for a child’s college education.
So at what age should you consider buying life insurance?
Use the above circumstances as a guide. If you have a spouse and/or children, life insurance can provide them with financial security during the hardest time they may face. This is especially true if you’re the primary or sole wage earner in the household. If you’re single but you have a lot of debt, life insurance can lift the financial burden off of your family. If you take care of elderly parents or disabled family members, life insurance can secure their continued care after you’re gone.
If you fall into one of these categories, than life insurance is a consideration that shouldn’t be taken lightly. However, if you’re single without dependents and without debt that exceeds your savings, then you probably don’t need to purchase life insurance yet—and you’re also quite lucky! Remember, life insurance protects those you love, giving you peace of mind in return. You only need to buy it if you’re in the position to provide financial care to your loved ones, at whatever age that occurs.