While everyone understands that death is inevitable, it isn’t something healthy people in their 20s tend to think about. As a result, Domonique Rodgers of NC State explains that many young adults do not currently have life insurance.

However, untimely deaths do happen, and those who suffer such unfortunate circumstances without life insurance won’t leave their loved ones with any financial security.

While many young people tend to mistake life insurance for being a luxury they can’t afford, it’s really as essential as general health insurance. Whether it’s a freak accident or a sudden medical issue, people can pass away unexpectedly, so even young adults should ensure they are fully covered to give their families some breathing room after death.

Life Insurance Provides Relief

Life insurance aims to financially protect families and dependents when a household earner dies — unexpectedly or otherwise. It gives those left behind the money to cover funeral costs, burials, cremations, and living expenses, giving them much-needed time to grieve.

While there are many types of life insurance, term policies tend to be the simplest and cheapest. When the policyholder dies, the beneficiary (i.e., a spouse, child, partner, parent, or close friend) receives a lump-sum payout.

Typically, the money is tax-free and isn’t attached to investments or savings. It is strictly to help people take care of final arrangements and cover certain costs like mortgages, utility bills, and more for a pre-determined period.

Contrary to Popular Belief, Life Insurance is for Young People

Death does not discriminate. So, financial planners encourage everyone with dependents to get a policy, even those in their early 20s.

Life insurance coverage is especially important when one spouse is the main breadwinner. It allows the surviving household members to take care of funeral expenses, which tend to cost between $7,000 and $9,000, while easing their monetary environment.

However, life insurance isn’t just necessary for young professionals. Stay-at-home spouses should also take out life insurance, as they perform a lot of unpaid tasks like cooking, childcare, cleaning, arranging appointments, and much more.

Grieving partners might not be able to shoulder all the chores themselves. Therefore, life insurance policies for non-working partners give their loved ones the funds to outsource domestic jobs.

Some Life Insurance Is Better Than None

Many young people don’t want to take out life insurance because they believe it’s too expensive. However, many coverage types are actually cheaper earlier in life, as the risk of critical illnesses is much lower.

Still, a Life Insurance Marketing and Research Association study showed that only 52% of Americans had coverage in 2021, and roughly 102 million needed a policy or more coverage.

But even taking on a less-than-required policy is better than not having a policy at all, according to financial experts. They recommend starting a policy with a death benefit of ten times the policyholder’s yearly salary.

With that said, some people should take out more or less than that, depending on factors like:

• mortgage payments
• savings
• debt balances
• childcare costs
• families’ medical needs

The bottom line is this — everyone with financial dependents needs life insurance, even when they’re only in their 20s.