Do Young Adults Need Term Life Insurance?
UPDATE 3/31/2012 - Not only can young adults benefit from carrying life insurance but so can teens and younger children. GerberLife is an example of a company focusing on life insurance products for the youth. They offer lifelong protection for children that can help build security as they enter young adulthood.
Do young adults need term life insurance? This is, of course, a question that is left up to the individual and will vary from person to person. In general though, term life insurance for young adults can be a ticket to financial freedom for their families if they plan appropriately. Unfortunately, a common view among young people is that death is something that only happens to older people. It's harder to convince these young adults that term life insurance is a life saver for those who end up needing it and it can give families financial strength and peace of mind for years.
Another common thought process going through the youth of America is a benefit offered to them through their first jobs. Many employers offer new employees a term life insurance policy through the benefits package equal to 1 time or 2 times their current salary. While this type of benefit is helpful, it's generally not enough to cover all of the costs associated with an untimely death. It may cover expenses for that year, but what about years to follow? How will young children save for college? How will the mortgage payment be made for another 30 years? How will debt be handled effectively? All of these questions can be answered through a solid life insurance policy offered from a reputable company such as Aetna Life Insurance.
Aetna is just one example of the dozens of quality life insurance companies out there ready to assist young people find the right product for them. Aetna specifically offers a variety of life insurance products such as basic term life, supplemental term life, accidental death and personal loss, as well as dependent life insurance which covers spouse's and children. Often times, the younger a life insurance applicant is, the cheaper the policy with larger payouts. This should entice young people to get on the ball early and research a life insurance policy that will fit in with their needs. No one ever hopes to use their life insurance policy, but the security of knowing your family would be taken care of financially can be very freeing, even for a young adult.