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Life Insurance. What's In It For My 20-Something Year Old Self?

| December 13, 2018

In the days gone by, life insurance was purchased by individuals to pay off the house or fund college education in the event of an untimely death of a spouse. Maybe “something for the kids" should mom or dad die early or a bridge of income for a surviving spouse. But over the years, life insurance has lost some of it's popularity…especially with the Millennial generation.

If you think about it, the above examples are exceptions to the rules given the increasing longevity into our 80’s and 90’s. So what expenses could you be faced with at such an age? How about funeral expenses, medical bills, consumer debt or a car lease? For example, my mother passed away one year into retirement at age 54. In a car accident that totaled her leased car. She had not purchased the accidental death coverage when signing the lease documents (how many people do?), so I inherited paying off the value of her car. Thankfully I was able to do that through the proceeds of her life insurance policy. Unlike most of her peers (single, grown kids, retired), she had an individual life insurance policy for unforeseeable financial circumstances. Many of her generation let go of their life insurance when the group plans end at retirement. I was the fortunate beneficiary of a sound planning decision. Not that I needed to pay off the house, or any traditional reasons, but it provided a source of funds to pay of “her debts”.

In my practice, I am concerned about the lack of life insurance owned by my clients. Many people in their 40’s and 50’s have the desire to purchase policies, but no longer the superior health status to make it affordable. That luxury passed along with their youth. What is that old saying…. youth is wasted on the young? Not so with my younger clients, as they are among the brightest people I know! It’s just a lack of education regarding the long-term need of insurance that is to blame.

So what is the upside of buying life insurance as a young single professional? You buy it for tomorrow, and the challenges and lifestyle choices your future-self will make. It's a gamble...but it can also be a game changer, a financial windfall that can positively affect the course of someone's future. You insure your car, your health, an apartment and maybe even your why not your life? I’m always interested to talk about this and other considerations surrounding your financial well being..

Kimberly Enders, CFP® CSW®  38700 Van Dyke Avenue Ste#125 Sterling Heights, MI 48312 (586) 554-7969

Securities offered through Cetera Advisor Networks LLC, member FINRA/SIPC. Advisory services offered through Summit Financial Group, Inc., a registered Investment Adviser. Summit and the Cetera are affiliated and under separate ownership from any other named entity.

Opinions expressed are that of the author and are not endorsed by the named broker dealer or its affiliates. All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell, any security or instrument or to participate in any particular trading strategy. The information in this article is not intended as tax or legal advice, and it may not be relied on for for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor.