Скачать или смотреть why i got life insurance as a single 27-year-old

It's typically recommended to get life insurance when you have dependents (spouse, partner, kids) or if anyone relies on you financially.

→ But this is why I bought a $500,000 20-year term policy (even though I have no dependents and no debt):

✅ Flexibility

For context, there are two primary forms of life insurance - term life & permanent life.

Term is much more affordable & flexible - permanent life can be more costly and limiting.

For my situation, term insurance was the obvious option. As far as flexibility goes, it doesn’t get much better. Compared to permanent life insurance, you can get the same coverage with term at a fraction of the cost - a $500,000 policy for a 30-year-old male - permanent life insurance costs $5,810 more per year

Because term insurance is so cheap, you can take the money you save compared to permanent life insurance premiums and invest it yourself (or spend it). Then your money isn’t tied up in an insurance policy and you can do with it as you please.

✅ Cost

Term life insurance is the most affordable way to protect your family or loved ones.

When you’re young and healthy, your rates are as low as they’ll ever be.

As you get older, your chances of dying go up, so the cost of coverage goes up.

I locked in a rate of $24.21/month ($290/year) at 27 years old and below is a chart showing the average annual cost for a $500,000 20-year term policy for different ages:

Your rates will depend on a lot of things—like your existing health—but if you lock in a low rate while you’re young and anything were to happen medically in the future that would increase the cost of coverage (like a diagnosis or accident), you wouldn’t have to worry about the cost of life insurance premiums going up.

For those with goals to start a family, this can be a big enough reason in itself.

The nice thing with term insurance is that if you stop paying the monthly premiums that keep the policy active, all that'll most likely happen is you lose the coverage.

According to Ladder's policy, "You may cancel your policy whenever you want to, for any reason. No questions asked. There are no cancellation fees or penalties if you choose to cancel your policy. You have the flexibility to increase coverage, decrease coverage, or cancel your policy at any time."

There may be small fees depending on your carrier/provider, but nothing compared to the cost of cancelling a permanent/whole life policy.

✅ Family

By far the biggest reason that I got life insurance is because I want to provide for my family if something were to happen to me. I’m in the process of building a few businesses and if I can’t accomplish what I’ve set out to do because I died, I still want everyone to be taken care of.

Funeral costs and other end-of-life expenses aren’t cheap either.

For example, the average funeral costs in America in 2023 are between $7,000 and $9,000.

No one should have to put together a GoFundMe during some of the toughest moments of their life.

If I can make sure everyone in my immediate family is taken care of if something happens to me AND it only costs $5,000 over the course of 20 years, I’ll find room in the budget.

🎈 All sources and images: https://www.creatorbread.com/blog/why...

→ https://www.treyton.com