I'm Young. Why Do I need Life Insurance?

I'm Young. Why Do I need Life Insurance?

May 17, 2022

A recent Fortune article reported that “Today’s millennials and Gen Z have more economic power than any generation that preceded them. They are earning more, saving more, and investing earlier and at a higher rate than previous generations. For millennials, 31% started investing before age 21, compared to only 9% of baby boomers and 14% of Gen X.”

Life insurance should be a key part of any financial plan, especially for young families, who may be juggling new careers, raising children, or paying off a mortgage. And it can help replace income should a parent or partner pass away.

Not all young people feel that way. They're invincible, right?  But what if the unthinkable happened?  Do they have the resources to pay unforeseen medical expenses or withstand loss of income?

The video below presents just such a case. It talks about the need for the younger generations to protect what they've earned.

Life insurance is another planning opportunity, especially for the younger generation who have their whole life ahead of them to build on that planning. It's a chance to put some money away and save for the future, while at the same time protecting that future.

The use of cash value life insurance to provide a tax-free resource for retirement assumes that there is first a need for the death benefit protection. Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy’s cash value in early years.