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If if we are working to further our financial progress, the first thing that we need to do is have our legal documents in order and have an appropriate amount of life insurance. Hello, Peter. Welcome back, everyone. This video is for all of the younger adults who are in our audience. Today, we’re going to talk through three reasons you should consider life insurance. Life insurance is often thought of as something you get later after you’re married, have kids, own a home, or build substantial assets. But
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many young adults overlook the real benefits of getting life insurance sooner rather than later. So why do you think, Peter, life insurance isn’t top of mind or considered a priority among young adults? >> Well, because they’re not going to die, right? We all have that Superman, Superwoman, invincibility complex. And also, nobody wants to think about dying, especially not at that age. And so we sort of put that off or ignore it. But the truth is, Aaron, as you mentioned, uh really any mature, responsible adult
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over the age of 18 who especially has a spouse that depends on income, debts of any type, a mortgage, kids at home, income that someone else relies on, life insurance is not an option. It is a necessity. you’ve got to protect those people and those loved ones uh that that care so much about you against that worstc case scenario that no one wants to think about and so it often gets over uh overlooked and ignored. >> All right, so let’s talk through those three reasons then that young people
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should consider. You’ve touched on some, but primarily life insurance is cheaper when you buy it younger. Term life insurance can be up to 50 to 70% less expensive when bought in your 20s versus your 40s. That’s according to Nerd Wallet. >> Much cheaper. Yeah. And and as somebody who has now done both, purchased it in my 20s and in my 40s, uh I concur and I can uh confirm that it is absolutely much cheaper the younger that you are. Not only because you are younger, but you know, health things pop up even even
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in your 40s. They might not be uh significant health issues, but all health issues are sort of disclosed and uncovered in in in those applications for life insurance. And so just being older is going to work against you as far as pricing. I mean, I I have quote engines in my office that can quote out across basically all of the major carriers in like five minutes and I can get prices for folks, but when I look at somebody in their 20s versus pricing out the same thing for somebody in their 40s, it is going to be significantly
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more expensive. I mean, I I’m just throwing numbers out here, but probably double, triple the price. uh just even for a healthy individual because of age. So, right, >> you know, you you’ve got to try to get it young and and buy term and invest the rest. And maybe later on down the road when life insurance is more expensive, you don’t need the life insurance because you’re essentially self-insured with the investments that you’ve built up. >> All right. Reason number two, life
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insurance can bring peace of mind when you are just starting a family. That was when I bought my first policy. Peter was after we had our first. >> Yeah. Same. Uh kids are kind of that kick in the pants that we need to remind us that we are now adults and we should be doing adult things because now younger younger humans are counting and relying on us, right? Um it was probably about the same time that uh I thought about it for for my first life insurance as well. Um but yeah, I mean when you’ve
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got children uh it is not a question. It is absolutely a necessity. You’ve got to protect against that worst case scenario. Give them the means, the financial means uh to be supported through through the age of adulthood at least. >> Right. Okay. And reason number three is a lot of us think life insurance is only for long-term legacy planning, but it can be a financial lifesaver for young and even healthy adults. How is that? >> Yeah. Well, I mean, there there are a few different ways. Uh I I think that
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the big one is covering final expenses, making sure that bills and debts are paid off for those family members. Like that is the real root purpose of life insurance, right? The the legacy part is great and that’s maybe getting a little bit more advanced than the true need and necessity, but to leave a positive legacy for folks, um there are some ancillary benefits that can happen between now and then from life insurance as well. And now we’re getting into the different types and reasons for life
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insurance, but it can be used uh as as a collateral. You can loan against it. It can create cash flow. You can have debts that you pay off with them. Um available cash flow within them. But to me, really the root cause is to cover that thing that we don’t want to think about the worst case scenario and protect the family, protect the spouse, pay off the house, take care of the kids. Those are those are the reasons for life insurance, >> right? Right. For young adults though who are on a tight budget, as most of us
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are, right, when we’re young, how often I’m sorry, how should they balance the cost of life insurance with other financial priorities like creating an emergency fund or student loan repayment? Well, I I am a subscriber to the Dave Ramsey methodology of of financial progress here. And Dave is a big fan of paying off debts and and you know that that that goes into a a specific order though. You have your baby emergency fun uh baby emergency account, baby emergency fund. You pay off your debts and then you fully fund
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your emergency account. However, he puts life insurance in the pre-babystep category. And I would agree like if if we are working to further our financial progress, the first thing that we need to do is have our legal documents in order and have an appropriate amount of life insurance to protect against the worst case scenario. What if we are no longer able or here or capable of furthering that financial progress for others uh and for our family? So, I think that life insurance is kind of a prerequisite step to all of those
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others. And again, I’m every mature, responsible adult with with an income that someone else depends on with debts, with children, you need to have that life insurance. And again, it’s it’s not a difficult thing and it’s generally not very expensive. Term life insurance is very very cheap. the bang for your buck is significant and it’s it’s almost like you get that young, you don’t have to think about it too much for the next 20 or 30 years and it’s like less than a
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cup of coffee a day here. But um if you’d like to see what it would potentially cost you or how little it would actually cost you, give me a call and myself or my team, we can run a quote for you in like five minutes. We can show you across multiple companies like all of the top A-rated carriers how much it would be and we can talk through why you would maybe choose one over the other. But generally with term insurance just again go with the best bang for your buck, the cheapest option from a
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well-rated carrier. Uh and then check that box and move on with your financial progress. >> Peace of mind. Yeah. So how can people get a hold of you to do that Peter? Uh, give me a call at Rashan Planning 919-3000-5886. 919-3000-5886. You can also text that number, by the way. Just text your name or something uh to 919-3000-5886 and we’ll we’ll be back in touch. Or you can go online rashplanning.com. It looks like rich onplanning. And if you just like a life insurance quote, there’s a
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little button at the top for schedule and you can just schedule a phone call. Take less than 15 minutes. Uh and and we can probably have that process underway for you. >> Great, Peter. Thank you. >> Thank you, Aaron. Important topic. >> Hey folks, Peter Rashan here with Rashan Planning. So glad that you are enjoying the podcast, Planning Matters Radio. You know, one of the tools that we’ve put out there that people really seem to appreciate and really are are finding of value is at 919 retired.com. It is your
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you have not yet, go to the website 919retired.com, run your numbers on the retirement tax bill calculator. This has been planning matters radio. >> The content of this radio show is provided forformational purposes only and is not a solicitation or recommendation of any investment strategy. You are encouraged to seek investment, tax, or legal advice from an independent professional adviser. Any investments and/or investment strategies mentioned involve risk, including the possible loss of principal. Advisory
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services offered through Brooks Zone Capital Management, a registered investment adviser. Fiduciary duty extends solely to investment advisory advice and does not extend to other activities such as insurance or broker dealer services. Advisory clients are charged a quarterly fee for assets under management while insurance products pay a commission which may result in a conflict of interest regarding compensation.
