A diploma isn’t the only valuable asset you’re acquiring as a new graduate. Your youth and good health present a golden opportunity to secure another valuable asset: life insurance. It might seem like an odd graduation gift, but here’s why it’s a savvy financial move that can pay dividends for years to come.
Why should a young, healthy graduate like yourself need life insurance?
- Lock in low rates while you’re young and healthy: Younger, healthier individuals qualify for significantly lower insurance premiums. By securing a policy early, your graduate can “freeze” these rates, saving potentially thousands of dollars over their lifetime. For instance, a healthy 30-year-old could pay an average of $26/month for a 20-year, $500,000 term life policy, while waiting a decade could double that cost.
- Safeguard your loved ones from financial burdens: Student loan debt is a reality for many graduates, with the average borrower owing $37,172. If something were to happen to you, this debt wouldn’t simply disappear. Life insurance can cover outstanding debts, ensuring your loved ones aren’t left struggling with your financial obligations.
- Maximize your employer’s benefits package: Many employers offer life insurance as part of their benefits package. A 2023 survey by the Bureau of Labor Statistics found that 78% of private industry workers had access to life insurance through their employer. This is often a low-cost or even free perk, so take advantage of it while you can.
- Gain peace of mind as you embark on your journey: Life is full of unexpected twists and turns. Having life insurance can provide a safety net, offering you and your loved one’s financial security and peace of mind as you navigate life’s uncertainties.
What type of life insurance should you choose?
- Term Life Insurance: This type of insurance provides coverage for a specific term, such as 10, 20, or 30 years. It’s a popular choice for young people due to its affordability.
- Term Life with Return of Premium (ROP): A unique option offered by companies like Eventefi.com, ROP returns the premiums paid if the policyholder outlives the term, essentially making the coverage “free.”
- Whole Life Insurance: This type of insurance offers lifelong coverage and includes a cash value component that grows over time. It’s generally more expensive but can provide a source of funds for future needs.
Choosing the right policy depends on your individual circumstances and goals. A financial advisor can help you evaluate your needs and find the best fit for your budget. You can check out Eventefi.com.
Invest in your future today
Life insurance isn’t just about preparing for the worst; it’s about investing in your future and protecting the people you care about most. By securing a policy now, you’re taking a proactive step towards financial security, giving yourself and your loved one’s peace of mind for years to come.