For Estate Planning and Life Insurance, the Younger the Better

October 16-22 is National Estate Planning Awareness Week

Woburn, MA, October 18, 2023 – People in their 20s and 30s often believe that they do not need an estate plan, much less life insurance. This is true particularly if they have not yet gotten married, purchased a house, had a child or accumulated sizable assets, and are preoccupied with paying off their student loans.

According to life insurer SBLI, however, it’s never too early for people to start securing their financial future, and there are advantages to doing so when one is young. Whether you’re just starting your adulting journey or are already well on your way, estate planning and life insurance are essential tools for safeguarding your legacy.

In observing National Estate Planning Awareness Week October 16-22, the National Association of Estate Planners & Councils notes that an estimated 56 percent of Americans do not have an estate plan in place.

Estate planning isn’t just about who gets your vintage vinyl collection or that coveted gaming console. It’s about ensuring your assets are distributed as you want, minimizing taxes, and making life easier for your family when you’re no longer around.

The first step in building an estate plan is to get organized by making a list of your assets. Once you’ve completed this inventory, map out your wishes and where you’d like your property to go after you’re gone.

A key component of an estate plan is a will, which specifies how you want your property to be transferred to your heirs after your death. If you die intestate (without a will), then the state takes over and distributes your assets through the probate process as it sees fit, which may not be in accordance with your wishes. An alternative to a will is a trust, which is a fiduciary arrangement in which a third-party person or organization, called a trustee, holds assets for the benefit of a beneficiary or beneficiaries.

To help in the process of creating an estate plan, LegacyShield^® — a secure platform available to every SBLI policyholder — allows you to create a will or a trust and offers the ability to store these and other important documents, including bank accounts, credit cards, investments and insurance policies, in a “digital vault” until they’re needed.

Life insurance is another important element in an estate plan. According to LIMRA’s 2022 Insurance Barometer study, 41 percent of Americans say they need life insurance, or more of it.

People who are young and healthy often feel they don’t need life insurance, and with their other financial obligations such as student loans, they think it is not affordable for them. But the fact is that carrying a large loan balance is the very reason why life insurance is needed, and it costs less than most people think.

If you have a mortgage and/or other consumer loans, life insurance can help your family cover those debts if something happens to you. Life insurance can also provide a financial cushion, ensuring the people you love maintain their quality of life.

Studies have shown that people tend to overestimate the cost of life insurance by a significant amount. But term life insurance can in fact be very affordable, offering the most death benefit protection at the lowest cost, and the premium remains the same during the selected level period, anywhere from 10 to 30 years. Also, the cost is lower the younger you are when you take out a policy, making it advantageous to lock it in.

Another reason that people may think they do not need an individual life insurance policy is if they have group life insurance coverage through their employer. However, it’s important to keep in mind that group coverage may not provide you with enough financial protection for your family and may not be portable if you leave or change your job, whereas an individual life insurance policy is always yours to keep no matter who you work for, as long as the premiums are paid.

During National Estate Planning Awareness Week, take a moment to think about your future and your loved ones. Whether it’s through a will, a trust, or life insurance, there are plenty of ways to secure your legacy.

About SBLI

For more than 115 years, SBLI (The Savings Bank Mutual Life Insurance Company of Massachusetts) has specialized in providing simple and affordable life insurance solutions. Whether it be term life, whole life or a plan that combines the two, we offer dependable protection at a fair price.

SBLI is a registered trademark of The Savings Bank Mutual Life Insurance Company of Massachusetts, Woburn, MA. NAIC #70435. Licensed in 49 states and DC (excludes NY). Products and features may not be available in all states. ©2023 All rights reserved. (10/23)

SBLI is in no way affiliated with SBLI USA Life Insurance Company, Inc.

SBLI has partnered with LegacyShield to provide certain products with your policy. Additional LegacyShield products may also be available for purchase. Your relationship or agreements with LegacyShield are separate from your relationship or agreements with SBLI. The kits you may be receiving access to through LegacyShield are not intended to be legal, tax, or investment advice. You should consult your own legal, tax, or investment advisor regarding your personal situation. LegacyShield is a subsidiary of SBLI. Products or Services offered under LegacyShield are not insurance and are subject to change. For more information, please contact SBLI at www.sbli.com or via telephone at 800-694-7254.

23-4351