Why I purchased life insurance at 23

Everyone's situation is different.

Mine began recently with a bunch of firsts: my first job, my first apartment and my first life insurance plan. I am now 23, single with no children with some disposable income – and a life insurance plan holder.

How did this happen?

The conversation began at work. I asked Bill, a colleague and mentor about his retirement and financial future and how he intends to plan for it. He rattled off the usual, a 401(k) plan, Roth IRA account, personally-held stocks and bonds, a money market account. And, life insurance through his professional group association.

I was surprised by that last one. Life insurance was a part of his financial portfolio? My understanding was that we received life insurance through our employer, so basically, we were covered.

Bill went on to say that life insurance has always been a part of his family’s financial blueprint, and was purchased primarily for the death benefit. The Group Term Life Insurance plan that Bill’s grandfather purchased early in his own life actually helped Bill’s father when his grandfather unexpectedly passed when he was only a child. And, Bill said that the Group Term Life Insurance coverage he owns now is helping protect his family’s standard of living so that they wouldn’t have to change their lifestyle if anything were to happen to him.

I was glad Bill’s father was covered when his father unexpectedly passed but I still didn’t view life insurance as part of any financial strategy. I was only taking care of myself with no responsibility to watch over someone else. Bill went on to quickly dispel that notion for me.

Bill’s explanation of life insurance benefits for young professionals.

Assessing the need.

Individuals fresh out of college and starting a career may want to consider term coverage. If they're like many students, they probably have student loans that need to be repaid. If they should die before the loans are repaid, that obligation could fall to their estate or family. Group Term Life Insurance could safeguard against that and many other financial burdens you could leave behind…such as credit card debt, medical bills, car payments, rent and funeral expenses just to name a few.

Starting a career and being independent is the first step toward achieving financial stability. It’s up to you to protect what you’ve worked so hard to earn.

Affordability. The benefits of beginning early.

As we got deeper into the conversation, the idea of buying Group Term Life Insurance made more sense to me. Still, there were cost considerations. I am paying off a student loan, and trying to erase my credit card debt. So, there was some lingering doubt.

What really sealed the deal for me, however, is when Bill recounted “Basically, the younger you are, the lower the price will be to insure you. Also, you're in good health now, so your premiums will be lower than if you decided to get life insurance at my age. That’s because your health status may change and put you at risk for being unable to obtain life insurance at an affordable cost, or even at all. Best of all, life insurance through our professional group association is designed to be competitively priced.

Portability. The perks of Group Term Life Insurance through your association.

Although I have some Life Insurance through my employer, Bill went on to explain that it may not be enough. If I no longer worked at the company I would lose coverage all together. He also noted that Group Term Life Insurance coverage through my professional association is portable, meaning if I moved on to another company or decided to travel the world tomorrow, I would still have my life insurance plan.

Additional Considerations.

Life insurance purchased today can also protect your future insurability. Though single today, you may eventually have a family, debt, a mortgage and aging parents to look after. Think of Group Term Life Insurance as “protection” when a loan is taken. A Group Term Life Insurance policy could assure that your financial responsibilities are covered by acting as a hedge toward paying off your obligations.

“So, with a little belt-tightening now, by becoming a life insurance plan holder, you will have an important and secure financial building block for your future,” Bill concluded.

This has certainly been an eye-opening experience for me. Take charge of your financial stability and start your own assessment by contacting your professional association [Association Name Here] at www.Associationwebsite.com or call (xxx) xxx-xxxx.

This is a fictional scenario to illustrate some of the benefits of Group Term Life Insurance.

This Information is courtesy of New York Life Insurance Company, used with permission. It is intended exclusively for general information only.