- Single, age 23,
- Recent college graduate, earning $40,000 per year
- No dependents
- Reasons For Coverage:
- Burial and other final expenses—Costs within this category can easily amount to $10,000-$20,000.
- Peace of mind—knowing others will not have to be responsible for debts you incurred or expenses incurred on your behalf.
- Reasons To Consider Coverage:
- Lock in a low premium at a young age—premiums for life insurance can easily double between ages 23 and 45
- Provide a nest egg for your future and/or unexpected emergencies—the cash value feature found in a variety of life insurance policies is easily accessible when needed for any purpose.
- Too Soon To Consider Coverage:
- Income replacement—Proceeds from a life insurance policy can replace lost income from the insured due to death.
- Provide funds for college—Proceeds from a life insurance policy are not restricted in use so it is a perfect solution to insuring that college funds are available to the family in the event of the premature death of the breadwinner. On the brighter side, a properly selected cash value policy will have funds available to the policy holder as a loan.
- Mortgage protection—the right term decreasing term policy will pay off the family’s mortgage at the untimely death of the breadwinner enabling the family to remain in the home
- Supplement your retirement plan—the potential build-up of cash value from a life insurance policy during your working years can be used as supplemental income during your retired years.
- As a tool for estate planning—you can transfer more wealth to your family if a life insurance policy is part of your estate