Many younger adults may question whether life insurance is a necessity at their age, especially if they are paying down student loans and trying to save for their financial future. What many may not realize is that life insurance is an important component of their future and the future of their family members.
Most Americans purchase life insurance when they get married or have children. Purchasing coverage earlier may be more affordable for those who have age and health on their side, reports. After making the initial decision to buy a policy, knowing how much to purchase can be difficult.
“My rule of thumb when you have a young family is 10 times income,” Insurance for Dummies author Jack Hungelmann tells Fox Business. “It’s a little bit more than most people need, but if you’re going to die and leave a spouse with a couple young kids, the kids are going to grow up having one parent instead of two. It’s nice to have a little extra cushion,” Hungelmann said.
Life insurance may not be pleasant to think about, but the benefits could pull a policyholder’s survivors out of a financial rough patch in the event of their sudden death.