When you’re young, single and with no children, it’s easy to think you don’t really need insurance. After all, it’s just going to be another regular bill, and who wants to pay for something like that when you could be spending it on trips abroad or to the beach, trying out the hottest new restaurants, the newest gadget or the downpayment for a new car?
While positions vary about whether singles should or shouldn’t spring for life insurance, here are three good reasons you may want to get it anyway.
1. It’s Cheaper While You’re Young and Single
Premiums go up the older you get, so the younger you are, the less it will cost. Getting a policy after you’re married can drive up the costs some more, as will having children. Get it while you’re young and single, and you’re locked in at that rate.
As you get older, the chances of you getting a chronic illness or health condition (especially if you work in high pressure industries where high blood pressure and heart trouble are rife) also goes up, and that could make you uninsurable or ineligible for coverage. Buy while you’re healthy, so if you do get sick, you won’t have the whole “preexisting condition” hoopla to worry about.
Tip: If you do get life insurance while you’re single and then get married and have children, make sure to evaluate your coverage to make sure it will be enough for their needs as well. While it may mean having to pay a bit more for the additional coverage, it won’t be as much as if you only started later in life and after you’ve been married and have had kids.
2. You Don’t Want Your Parents (or siblings) to Have to Worry More Than Necessary
If you have loans that your parents co-signed, or just don’t want them to have to worry about funeral expenses in case the unthinkable happens (yes, there are other young people that actually think of things like that), having a life insurance policy can help ensure that you aren’t a burden to them even after death. The last thing you want is for your grieving family to even have to think about those things.
3. You’re Helping Support Your Family
This may be the most important reason a twentysomething Pinoy might want to get life insurance. In the Philippines, many children help support the family after they’ve finished school and have landed jobs, some even becoming the breadwinners in their family.
If you’re supporting younger siblings or elderly parents it becomes even more important to make sure you’re covered in case of any eventuality. And even if your parents are still strong enough to work now, they may grow old and dependent on you someday. If you have special-needs siblings you’re helping support, this becomes even more important. Having the right amount of life insurance coverage can help assure you that they’ll be properly cared for when you’re gone.
If you’re still living with your parents and haven’t even started on setting up your emergency funds, you probably don’t need a life insurance policy. But if you already have an emergency fund, have spare funds every payday and want a way to make sure you’re getting started on a retirement fund without actually having to think much about it, it’s a great way to go.