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In simple terms, life insurance is not for you – it’s to protect your loved ones.

Life insurance is one of those things that just about everyone needs but far too few people actually have. Many financial experts also consider life insurance to be the cornerstone of sound financial planning. While there are several factors that determine the cost of life insurance, generally, the younger and healthier you are when you buy a policy, the cheaper it will be. It’s easy to put off purchasing a policy when you’re young and relatively healthy, but generally policies are cheaper the younger you are.

If you’re considering buying a policy, or have never looked into them because you think you’re too young to have one, this list will help you understand the huge impact life insurance can make on you and your loved ones.

1. Replaces Income for Dependents

If people depend on your income – such as children, spouses, parents, etc – life insurance can give them security if you die.  Insurance to replace your income can be especially useful if the government- or employer-sponsored benefits of your surviving spouse or domestic partner will be reduced after your death.

2. Life Insurance Buys Time and Options

Unfortunately, when an income earner dies, survivors are forced to quickly make tough decisions especially at a time when they may not be in the right emotional state to do so. Life insurance gives survivors a chance to adjust over time rather than having to move to a downsized home or find a new job right away.

3. Pays final expenses.

Life insurance can pay your funeral and burial costs, probate and other estate administration costs, and medical expenses not covered by health insurance. Life insurance can give you and your beneficiaries more of a guarantee, lifting a burden off of them as well as yourself.

4. Covers Your Debts

If you die with debts and no way for your estate to pay them, they will be passed on to your heirs.  Your assets and everything you worked for may be lost and will not get passed on to someone you care about and instead, they may be left with debt. When deciding on a coverage amount for a life insurance policy, financial experts recommend including your total debt amounts to ensure whoever receives the money in the event of your death will have enough to pay off your outstanding balances in full.

5. Protects and Builds Wealth

You might also look at a life insurance policy as a way to build your or your family’s wealth. You can do this either through potential tax advantages or if you want to leave money as a legacy, like in the case of survivorship life insurance. Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.

Life insurance can also be a way to secure your own financial stability, in the case of whole life insurance, or universal life insurance policies that also offer cash values and investments. These types of policies, along with survivorship life insurance policies also offer the potential of borrowing money from your life insurance policy.


One of the excuses people tend to make for not buying life insurance is the cost. But truthfully, coverage often ends up pretty affordable for most people – especially if you’re young and healthy. Most people aren’t thinking about life insurance in their 20s, but it’s often the best time to buy it.


If you still have questions or are unsure if life insurance is in line with your family’s needs,

contact The DeHayes Group to discuss coverage options.