StashLearn
Get the app
Get the app

Join millions of investors on Stash

Investing, simplified

Start today with as little as $5
Get the app
Teach Me

How Buying Life Insurance When Young Can Help You Plan Your Future

June 27, 2018

The earlier you purchase a policy, the cheaper it’s likely to be.

1 min read

A wise man once said, two things in life are certain—death and taxes. And while there’s not much you can do about taxes, there is something you can do about death: consider buying life insurance.

Life insurance can help protect your loved ones against loss of income and other financial uncertainties in the event of your death. In fact, purchasing life insurance can be an essential part of a smart financial plan, according to some experts, which should also include regular saving and investing.

And purchasing life insurance while you’re young can have particular cost benefits.

Here are five reasons why getting life insurance is likely to be a good idea.

1. Your premiums can be lower.

The younger you are when you purchase life insurance, the lower your monthly premiums are likely to be. When considering term life insurance, your monthly premium is a fixed amount that stays the same for the term of the policy.

2. It can help replace lost income.

Your wages and salary are essential to your family. Life insurance can help your spouse, partner, or children replace the income you contributed when you were alive. That can include day-to-day expenses, monthly bills, and other common financial obligations.

3. It can help with burial costs.

It may be unpleasant to think about, but the average funeral costs up to $10,000 today. Life insurance can help offset some of those costs.

4. Paying for educational expenses.

If you have children, you’ll want the best for them, especially after you’re gone. A life insurance policy can help fund their educational expenses, whether that’s in a custodial account, or some other educational account, such as a 529. The money can also cover the cost of your remaining student loans, which can be really helpful if you had a cosigner.

5. Paying outstanding debts.

You and your spouse or partner may have a mortgage or other debts, such as credit card or other loans you co-signed together. Life insurance could help with those loans.

Planning your financial future is always a challenge, and the future is filled with unknowns. Life insurance could help your family manage their expenses without you. And the sooner you consider a policy, the cheaper it’s likely to be.

Ready to get covered?

Get term-life insurance

Ladder* can give you a quote online in seconds.

Get a quote

*Disclosure: Stash is a paid marketing partner of Ladder Insurance Services, LLC. All content herein is for informational purposes only.

By Jeremy Quittner
Jeremy Quittner is the senior writer for Stash.

Next for you
Clip & Save: Your Financial Literacy Checklist

Investment Profile

Bonds Worldwide

An International Bond ETF on Stash

Learn more
Explore more articlesChoose a topic to learn more about
money lessons Careers Retirement social media Technology
Disclaimers

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Before investing, please carefully consider your willingness to take on risk and your financial ability to afford investment losses when deciding how much individual security exposure to have in your investment portfolio.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.