Optimal Finance Daily - Financial Independence and Money Advice 3285: Life Insurance for Young Adults by Jeff Rose of Good Financial Cents on Important Financial Decisions
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Sep 16, 2025 Life insurance might seem unnecessary for young adults, but it can be a savvy financial move. With low premiums, securing coverage early ensures better rates that won't spike due to age or health issues. Health improvements can further lower costs, making policies surprisingly affordable. Plus, protecting loved ones from unexpected financial stress is crucial, even without dependents. Exploring options like payable on death accounts can also enhance financial planning. Embracing life insurance now means future-proofing your finances!
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Regret Over Skipping Early Coverage
- Jeff Rose regrets not buying life insurance as a young adult because his parents would have been financially strained by his funeral costs.
- He says a small term policy then would have cost less than $10 a month and spared his parents hardship.
Buy Small Coverage To Protect Parents
- Do consider life insurance even if you're single because it can protect the parents who supported you financially.
- A $50,000–$100,000 policy often costs less than two fast-food value meals per month, Jeff Rose notes.
Use Insurance To Replace Parental Investments
- Do think about debts: life insurance can reimburse parents or others for money spent on your education or support.
- Jeff Rose gives the example of parents losing college investments if a child died without coverage.