Life insurance is “what if” insurance to protect the ones you love or care for, or who depend on you. If you are age 35 or younger, you may not be thinking about getting life insurance yet.

While you are young, it is likely you will have fewer serious health issues than when you are older. However, insurance protects us from the things we don't expect, or want, to occur.

Here are ten reasons why you should consider getting life insurance while you're still young.

1. Life insurance is more affordable than you think.

According to the financial services research firm LIMRA, 44 percent of millennials overestimate the cost of life insurance by five times the amount

If you are not married, a parent, or a homeowner now — the common reasons people consider life insurance — you may be in the future. The younger you get life insurance, the lower your premiums will be. According to Investopedia, the best time to purchase a life insurance policy is under the age of 35.

A 2017 Princeton Survey Research Associates International survey found that 65% of 18 to 29-year-olds don’t have life insurance.

2. You have outstanding student loans.

Many people who applied for student loans had to have their parents co-sign the loans for them. As a student entering college, it is unlikely you had the credit history or financial means to sign a loan yourself.

Federally-issued student loans are discharged in the event of the student’s death. However, not all private bank loans are discharged the same way. If you have private student loan debt, you can name your parents as beneficiaries to protect them. In some “community property” states, your spouse can be held responsible for your debt.

3. You owe your parents, relative, or friend money.

When you are young and starting out, you may have turned to your family or friends to help you financially such as loaning a down payment on somewhere to live. You can make sure that kindness is repaid.

4. You are married or have a significant other.

Whether you are the sole breadwinner with your spouse or you both work, losing your income can be devastating financially. The same is true if you live with an unmarried significant other. Life insurance is a tax-free way to help the person you love get a fresh financial start and security. According to the IRS, “Generally, life insurance proceeds you receive as a beneficiary due to the death of the insured person, aren’t includable in gross income and you don’t have to report them. “ 

5. You have children — or you are planning to have children in the future.

When you are a young parent, you may be putting aside some of your income for your children’s future, often for their education. You start saving young because you know it can be expensive. With life insurance, those lost savings can allow your dream for your children to continue. If you don’t have children but plan to in the future, you are ahead of the game for taking care of them.

6. You have a mortgage.

Private mortgage insurance pays your monthly mortgage payments directly to your lender if you die. Life insurance provides a lump sum payment that can be used by your beneficiary to pay your mortgage in full or continue payments — as well as use the money for any other household or personal expenses.

7. You support a cause or charity that is important to you.

As a young person, you may have limited funds to donate to a charitable organization or other cause that has meaning to you. It could be someone important to you lost their life due to a disease. Maybe you love an art organization like a theater or museum. Or, perhaps you volunteer at a nonprofit. Almost all of these organizations have provisions for accepting donations via life insurance.

8. Your sibling needs life-long support.

If you have a sibling who has a physical or mental health condition that requires lifetime care and support, you can designate your sibling as a beneficiary and make arrangements for how the money is distributed for their care.

9. Your parents are older and may rely on you for care.

Your parents have raised you and taken care of you. As they get older, they may need help just as you did when you were young. Your life insurance can give them added financial security if you are not here to help them.

10. A bank wants loan collateral.

It can be difficult to get a loan for a condo or home when you are young. You are likely earning less than you will in the future, and you may have a limited credit history. Some banks will require life insurance as loan collateral.

A starting point when you are young and considering life insurance is to take a look at rates. Click here to get a no-obligation quote on federal employee group-term life insurance from Starr Wright USA.

Article authored by and containing the opinions of Starr Wright USA. This article is offered solely for informational purposes. Starr Wright USA is a marketing name for Starr Wright Insurance Agency, Inc. and its affiliate(s). Starr Wright USA is an insurance agency specializing in insurance solutions for federal employees and federal contractors. For more information, visit WrightUSA.com. Starr Wright USA is a division of Starr Insurance Companies, which is a marketing name for the operating insurance and travel assistance companies and subsidiaries of Starr International Company, Inc. and for the investment business of C.V. Starr & Co., Inc.