Why would a Young Single Adult need Life Insurance?

Graduating

I recently had a conversation regarding life insurance with someone who is age 25. This young adult lives at home with his parents and has recently started his own business in landscape maintenance. He previously worked as an employee for a landscaping company and is now branching out on his own. I asked him if he had any life insurance. He said “I am single, have no children, no college loans, and live at home with my parents; why would I need life insurance?”

Our conversation then took on a morbid tone. I asked him if he was cutting  a tree in a client’s yard and it fell on him and he died, who would pay for his burial expenses? He looked at me and said “I guess my parents would”. We discussed the fact that an average cost of a funeral is approximately $10,000; and it may be unlikely his parents would have that amount of money available to them, especially if he did not have any life insurance in place.

At this point of the conversation, we discussed how inexpensive it would be to buy a life insurance policy at his age. He’s had no health issues up to this point in his life. I indicated he could potentially purchase a $100,000 term policy for 10 years for perhaps as low as $7.18 per month. He was surprised it could cost so little. This amount of life insurance coverage would pay for burial expenses, credit card debt, loans on his business truck and car. As the term is only for 10 years, it helps keep the cost down as his business continues to grow. As his needs change, we could look at other life insurance options for him.

About the author: Teri Costen has been in the life insurance business for over 20 years. She is a mother of three who enjoys working out, taking aerobic kickboxing classes, and making stained glass. Teri believes that finding the right life insurance policy helps protect your family and loved ones. You can contact Teri at 1-800-651-1953 or TCosten@Pivot.com.