Graduation marks a major life transition—whether it’s from high school, college, or a trade program. With it comes a sense of independence and the start of new responsibilities. While most grads are focused on jobs, travel, or student loans, one topic that’s often overlooked—but critically important—is life insurance.
Why Think About Life Insurance So Early?
It may seem counterintuitive to think about life insurance when you’re young and healthy. But that’s exactly why now is the ideal time to explore it.
Here’s why:
Rates Are Lower for Younger Policyholders
Life insurance premiums are largely based on age and health. The younger and healthier you are, the less you’ll pay. Locking in a policy early means you can benefit from lower, fixed premiums for the duration of your coverage—even if your health changes later in life.
You May Already Have Financial Dependents
Even if you’re not married or a parent, you may still have people who rely on you financially. Co-signed student loans, shared rent with roommates, or helping support a parent could become burdensome for others if something unexpected were to happen.
It Can Cover Final Expenses
The average funeral in the U.S. costs between $7,000 and $12,000. Life insurance can cover these expenses and relieve your family from an unexpected financial burden during an already difficult time.
You Can Start Building a Financial Foundation
Some types of life insurance, like whole life or universal life policies, come with a cash value component that can grow over time. For young adults, this can be a strategic long-term financial tool.
Employer Coverage Might Not Be Enough
If you’re entering the workforce and your employer offers life insurance, that’s a great start—but it may not be portable or provide enough coverage. A personal policy ensures your protection isn’t tied to your job and can offer more robust support.
What Type of Policy Makes Sense for Young Adults?
Most young adults find that term life insurance is a cost-effective and simple way to get started. It provides coverage for a set number of years (e.g., 10, 20, or 30 years) and is typically very affordable. It’s a strong foundation to build on as your needs change.
Talk to Someone You Trust
Life insurance isn’t one-size-fits-all. At Compass Insurance, we’re here to walk you through your options with guidance—not pressure. Whether you’re just graduating or helping your child plan their future, we can help you find the right coverage for your needs and budget. Reach out to your local Compass Insurance office today to learn more about protecting your financial future.
