(BPT) - Life insurance is for people of all ages, not just parents and grandparents. While life insurance needs vary by age and stage of life, it's a good idea to invest in a life insurance plan while you're young.
If you're in your 20s and 30s, life insurance may not seem necessary, but it's a useful tool to have at any age. Check out these three reasons provided by State Farm® why life insurance should be a priority for young adults.
1. The best time to get coverage
As a young adult, life insurance probably isn't top of mind, but it's the best time to get coverage. Since you're young and likely healthy, you'll typically qualify for more affordable premiums. Because you have a relatively long life expectancy, insurers see you as less risk than older individuals.
You don't have to apply for an expensive, comprehensive policy. Start with a small policy in your 20s that fits your budget to build the foundation of your financial security. You can always expand your coverage throughout your life.
2. Planning life and expanding coverage
When you experience a life change, like marriage or kids, you should evaluate and expand your coverage as needed. By the time you're in your 30s, you may have children and a mortgage or plan, which makes the financial protection offered by life insurance more important than ever. For example, life insurance coverage can help cover your children's education costs if tragedy hits and you are no longer there to provide for them.
If you don't have kids or a house payment but are planning on expanding your family or purchasing a home, don't wait to bolster your coverage. Now is the time to make sure you are fully insured, as rates typically rise with age.
3. Security and peace of mind
It's not pleasant to think about you or a family member passing. Still, should the unexpected happen, you'll want to be covered. According to the Life Insurance Marketing and Research Association (LIMRA), too many families are at risk of financial insecurity should their primary wage earner pass away. In fact, the association found that 44% of U.S. households would feel financial hardships within six months of their primary wage earner's passing.
A life insurance policy provides your family with security in the event of your passing and provides you with peace of mind knowing they'll be covered after you're gone. In addition to paying for college and providing income to your loved ones, it can help them cover funeral, burial and cremation costs. According to State Farm, the average funeral typically costs around $8,000, a hefty expense to try to cover when you're already grieving the loss of a loved one. Final expense insurance (or burial insurance) can help relieve the financial impact of a funeral.
These are just three reasons why you should invest in a life insurance policy while you're young and can qualify for lower premiums. If you want to protect your future now but have questions about what coverage you need and can afford, visit www.StateFarm.com or the State Farm app to talk with an insurance agent.