Should a college student have life insurance? The average college student, age 18-23, does not typically consider this question. The Post-Millennial Generation, often referred to as Gen Z, are within their prime, and are the future of what society can be. I believe that at such a young age the Gen Z mindset should be very different than what it currently is. For the most part, the Millennial Generation and Gen Z are very focused on education or looking forward to their next vacation. They should, however, consider investing in their future. Maximizing all profits for an easier life and possibly an earlier retirement. What better way to achieve that than with a cash value life insurance policy?
Should a College Student Have Life Insurance?
One of the biggest reasons to get a Cash Value Life Insurance Policy is because it is like putting away your money somewhere safe for future use. Almost all types of insurance you must pay a monthly fee or premium. The older you get, the more your life policy will cost. The reason being is as you increase in age, so does the insurance company’s risk to insure your life. In simple terms, it is more likely for a 70-year-old to pass away than a 21-year-old. And the younger you are the cheaper your monthly rate will be. A 70-year old’s rate can be more than three times the price of a 21-year old. Insurance companies want to create the best policies for their clients, but they have to consider profits and solvency too. The amount of money you put in, over the top of the actual life insurance cost, gets added to cash value and earns interest. So, it’s like a savings account coupled with a life insurance policy.
The benefits of getting life insurance at a young age
There are several benefits a college-age student could receive with life insurance. Depending on the type of life insurance policy, it is like saved income you can access whenever you need it in the future. Emergencies happen all the time, especially when starting adulthood. For example, Medical bills, car payments or even wanting to go on vacation. When the policy accumulates cash value over a long period of time, you can borrow against it for use in your life. The longer you keep the policy the more cash value accumulates and earns interest. The bigger it grows the earlier you can retire. When you retire, you can potentially receive a monthly check for doing absolutely nothing all because you invested in your own life. Everyone wants to retire early, but also be financially stable. This is what life insurance can do when you are young. The older you get, the more you will need to put away monthly and the harder it will be to come up with that amount.
Term life insurance is cheap (as low as $15 or $20/month) but does not accumulate anything and leaves you with nothing when the term is over. Permanent life insurance requires more monthly but gives you some powerful benefits and the accumulation it takes to retire.
Invest your money in a life insurance policy to create a more relaxing and peaceful retirement. Save now and take advantage!