5 Reasons Why Life Insurance Isn't Just for Old People

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Life insurance isn't your average dinnertime conversation — no one likes to even talk about it. After all, life insurance is something that you only have to think about when you are old and grey, right?

But nothing could be further from the truth. Life takes unexpected turns, and at any age it could be just as important as having a strong emergency fund or funding your retirement.

Still need proof? Here are five compelling reasons why life insurance isn't just for old people.

1. You're Young and Healthy

Life insurance doesn't pay out until you die, but the best time to buy it is when you are young and healthy, since it's issued on rating scale. The healthier you are, the better the rating. The better the rating, the lower the price.

2. You Want to Boost Your Retirement Funding

401(k), IRA, ROTH, SEP-IRA — they are all great retirement options. But there are also hefty fees if you want to withdraw early from retirement accounts. Life insurance is the yin to retirement accounts yang. There are two kinds of life insurance: those that expire (term), and those that generate cash value (permanent). If you structure a permanent life insurance policy properly, you can actually use the cash value during your life to help fund your retirement, and even better, the benefits can be tax-free to you.

3. You Got Married

Being single can have many benefits. However, right after you say "I do" is probably the best time to start thinking about life insurance. What if one spouse works, while the other spouse might stay home? Or, maybe one spouse makes a lot more money than the other. However you slice it, life insurance can provide a very valuable asset if something was to happen to the higher-earning partner. You want to make sure you have enough life insurance to cover all your expenses, and then some.

4. You're Having a Baby

If you didn't think getting married was a compelling reason enough, that little bundle of joy should surely spur on the need. Kids bring on a ton more expenses — day care, education, clothes, food, and not to mention college. Tax-free life insurance benefits can become an important life preserver and ensure your child's well-being.

5. You're Open for Business

So, you've got a rock star business concept and are ready for world domination. If you've got a business partner, then life insurance should be your next step. You share expenses, knowledge, and more. What if something happens to one business partner? You've also got their family, their business interest, and the loss of a partner to think about. Business owners usually opt for life insurance on each other in what is a called a "buy-sell agreement." This agreement drafted by an attorney states who gets what when something happens. The most common form of currency to "fund" a buy-sell agreement…you guessed it: life insurance.

Do you own life insurance yet? If so, why or why not?