Do I Really Need Life Insurance In My 20’s?
Life Insurance is often delivered with information which causes us more confusion than help. When considering whether to get life insurance or not several questions come to mind. With so many different options which do I choose? I’m in my 20’s or 30’s, I don’t need life insurance do I? Isn’t that for old people? Wait a minute this guy is an insurance agent, he’s just trying to make a sale.
It’s understandable that these questions and thoughts come up around the topic of life insurance. Here are some simple steps to help you reach a position where you feel comfortable and more informed about life insurance regardless of how young you are. For disclosure, I am not an insurance agent. I do however have a life insurance policy and will share the steps I took when deciding on a life insurance policy.
First, let’s define what life insurance is. Per Google’s dictionary, Life Insurance is defined as an insurance that pays out a sum of money either on the death of the insured person or after a set period.
Our purpose for this one is not to be a downer and dwell on the unfortunate realities of life. This subject is crucial when building one’s financial intelligence and foundation. Let us proceed.
If you are in your early twenties and up, it won’t be hard for you to think of a friend or loved one who has passed away in a sudden and unexpected manner. Friends from high school, coworkers, family members, all leaving way before their time should have been.
These circumstances are a harsh reality of life. There is one thing in common among all who have left us. That is the fact they all left behind people they cared about. I’m sure every one of them would say they wish they had more time to spend with their families, and would do anything they could to help before leaving unexpectedly.
Money can never replace a loved one. In fact, I’m sure if we had the opportunity to exchange millions of dollars to bring a loved one back, we would trade the money for that loved one in a heartbeat. This is not about a person being greedy and wanting money if a family member passes on. This is about us and the responsibilities that we may potentially leave behind. Imagine the possibility of leaving family members who are counting on you, and you not being able to care and provide for them. A really shitty feeling right? That’s why we want to do everything we can for our families not only while we’re blessed to be alive, but even after we’re gone.
Taking this personal view on life insurance brought me immediate clarity on how important it really is. It was a difficult realization to face the fact that I may leave before I think it’s my time to go. With the fragility of life, we can be here one day and gone the next, we should plan accordingly for life’s curveballs.
Can someone please pass the steak sauce? Because when it comes to the process of selecting life insurance policies, it’s about as dry as it gets. Still, it is important and something that needs to get done. When we buy a car what is one of the first things we do? Right, buy auto insurance.
Shopping for Life insurance can be a little more involved while the various options can be overwhelming. Whole Life, Term Life, Annuities, and other complex forms of policies are rampant in the marketplace.
Maybe I oversimplified my decision, but I took a stance on life insurance the same way I view auto insurance. Nobody gets an overpriced auto insurance policy expecting it will pay them back when they get older. Nothing like that even exists. For some reason, there are life insurance policies that are structured this way.
Nobody drives a car around without auto insurance (I know some people still do). Even if you get into an accident and it’s not your fault and the at fault driver doesn’t have insurance either, you’re both out luck. Car repairs are your responsibility along with any injuries, and it doesn’t even have to be your fault. I started thinking, nobody gets auto insurance and expects to get into an accident. Likewise, nobody getting life insurance expects to unexpectedly pass away. Always prepare for unexpected circumstances.
I would never in a million years drive a car without auto insurance. I’m sure that most people on the road think the same, they would never drive their cars without auto insurance. If something unexpected happens, they would want their car to be taken care of. Why is that people are living life without life insurance?
If a car gets completely wrecked, no problem. As long as everyone lived through it and didn’t suffer major injuries life moves on, cars can be replaced. If a person passes unexpectedly, the repercussions are unparalleled. Children are faced to grow up without a Mother or a Father, Parents can be left unattended in their old age, family who was depending on you to be there for them are left to fend for themselves. It is a tough reality to face, but the only way to determine whether life insurance is appropriate in your life or not is by putting yourself in the shoes of the one leaving unexpectedly.
To lighten the subject matter, I have some good news! This is just an exercise for us to make a decision and further our financial intelligence. Nobody is going anywhere right now. Even better news is that as a person in your twenties or thirties, life insurance policies are extremely cheap. Did you know even at 30 years of age you can have a million-dollar life insurance policy for less than $40 a month? That’s right, you decide the beneficiaries, who you want the checks to be paid out to if untimely circumstances arise.
Everything can be done over the phone, at least that’s how it worked for me with the company I chose to go with. Any one of the big insurance companies will be happy to help you with this if you give them a call. You can set it up and forget about it for the next decade. Live life to the maximum and know that your family will be taken care of. Hopefully this helps you arrive at a decision and motivates you to do all that you can while you’re here on planet Earth.
Until next time, keep pushing and progressing.
income over expense
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