As college graduates take the next step, one thing is often left out of the process – life insurance. Young adults often carry debt with them into the working world, whether from student loans, car loans or credit card debt.
If you are a recent graduate, have you considered what could happen if you were no longer around to cover your loan payments? Would your loved ones struggle to make ends meet?
Many people do not realize that – depending on their loan agreement – their spouse, cosigner or estate might be responsible for paying off student debt. A 2022 LIMRA study found 21% of households would have trouble paying daily living expenses within one month after the death of a primary wage earner. This percentage almost doubles within 6 months.
This need tends to be compounded for young adults who are not financially established in life. Most people are not expecting to cover the loan payments and final expenses of a young relative, but tragedies can happen, and life insurance can provide the financial protection to cover these costs while a family grieves.
Through the purchase of a term life insurance policy, a young adult could obtain coverage to fit their stage of life. Term life insurance offers a level death benefit for a guaranteed period of time ranging from 10 to 30 years. Furthermore, an applicant can usually obtain the most cost-effective coverage while still young. Term life insurance is an ideal product to protect a new professional’s family from financial distress in the event of an untimely death.
And it probably costs less than you think. Term life insurance tends to be the least expensive coverage option for an individual. A 2021 Insurance Barometer Study indicated that over half of surveyed millennials overestimated the cost of term life insurance by at least three times the actual cost. Even with a tight budget, term life insurance can provide the necessary coverage to protect one’s family.
Contact your local, independent life insurance agent to find coverage that works for you.
For policy service and additional information, speak to an independent agent representing The Cincinnati Life Insurance Company. For a complete statement of the coverages and exclusions, please see the policy contract. All applicants are subject to underwriting approval. Products and riders available in most states.