Whether you’re in your 20s, 30s, or 40s, there are several types of insurance policies that everyone needs—even if you’re young, single, childless, or don’t have many assets to protect. While it may seem redundant to insure your home, life, and health when you’re young, healthy, and occupying your home as a tenant rather than a homeowner, these policies can benefit you in more ways than you’d expect. To explore the many benefits of purchasing health, life, and homeowners insurance policies at just about any age, read on!
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1. Health Insurance
Health insurance may seem unnecessary if you’re young, single, and healthy, but this type of policy will keep you from paying thousands of dollars in medical bills if you’re in an accident, need surgery, develop a severe health condition, or require ongoing medical care for any reason. Plus, even the most basic health insurance policies cover everything from doctor’s appointments to preventative care services—including screenings for HIV, alcohol misuse, depression, and certain cancers.
Moreover, the dangers of not having health insurance are vast. If you don’t have health insurance and can’t afford to pay for your medical services out of pocket, you may stop seeking medical attention altogether—which could result in a serious illness later in life. If you do receive medical attention, you could end up with thousands of dollars in medical debt—which may harm your credit and affect your ability to buy a home or obtain other types of financing.
2. Life Insurance
Like health insurance, a good life insurance policy can benefit you at any age—even if you’re young, healthy, single, and expect to live well into your 70s, 80s, or beyond. However, accidents and illnesses can happen at any age—and it’s important to be prepared in the event that you die prematurely. If you support friends or family members, for instance, your life insurance policy will provide your surviving loved ones with the financial support they need in the event of your early death. Once you marry and start raising a family, you can name your spouse and children as life insurance beneficiaries as well.
While the type of policy you purchase will depend on your financial obligations and personal needs, Mint.com recommends the following life insurance policies for singles:
- Term life insurance.
- Disability insurance.
- Long-term care insurance.
Moreover, final expense insurance is another type of life insurance policy that protects your surviving loved ones when you die. While the benefit amount is typically lower than that of a standard life insurance policy, final expense insurance provides your surviving loved ones with an immediate payout in the event of your death. As such, this benefit amount can be used to cover the cost of your burial, memorial service, outstanding bills and debts, and other funeral-related expenses.
3. Renters or Homeowners Insurance
Whatever your age, it’s also important to have a good renters or homeowners insurance policy in place. Renters and homeowners insurance policies pay for damages to your personal belongings due to theft, vandalism, fire, and water damages, and they offer other benefits such as personal liability protection and medical payments coverage. Unlike renters insurance, however, homeowners insurance also offers dwelling coverage.
While a renters or homeowners insurance policy is vital whenever you rent or own property, it’s important to select the right deductible for your policy. In most cases, a high-deductible policy will be best for lowering your coverage costs and helping you to save money in the long term.
Even if you’re young, unmarried, and child-free, these three insurance policies can save you money now, in the near future, and once you do get married or start raising a family. However, it’s important to consider your options carefully and take the time to find the right policy for your current budget and lifestyle. As time goes on and you become a parent, spouse, or homeowner, you can always modify your insurance coverages to fit your evolving needs.
This informative post was contributed to Leisure Freak by Brittany Fisher-
Brittany Fisher has spent more than 20 years as a CPA. She runs her own site, Financiallywell.info where she shares her knowledge about taxes, personal finance and general financial literacy hoping to help anyone who may benefit from it.
