Should young people consider life insurance? 
That is a great question ! There are really two schools of thought about life insurance . One school believes that the money that someone would pay for a policy should be saved and invested , and those funds used to ensure the well being of the loved ones left behind . The second school of thought is buy young , and be prepared . I can see wisdom in both views . There can be much higher rates of return on the investments made with what would have been the premium money if invested wisely.But ... I am a pretty staunch realist , and the sad reality is that most Americans ca n't / do n't save , and even fewer know how to invest what they do . As a result , nearly 3/4 's of Americans live paycheck to paycheck , and are one disaster away from bankruptcy . -LRB- Want some scary data for your paper ? Go look at the 2012 Census data ... -RRB- Life insurance provides a `` forced savings '' method of providing for the need for protection . As long as the payments are made , your family is protected . And in my opinion , life insurance provides three serious benefits that the first view ca n't match : There is no guarantee on how long we live , and there is a real chance that disaster could strike before the amount needed to protect your loved ones could be accumulated . With a policy , if it 's in force one day , and you were -LRB- God forbid -RRB- to pass away in an accident on the second , the policy would pay out in full . What investment pays off that well ? Secondly , that benefit paid is tax free , and generally probate free . Many estate battles take years , and on average eat away about 40 % of the value of the estate that would have been left . The third , and in this economy that favors the wealthy and stresses the majority of Americans , a whole life policy provides a source of money in an emergency . As the policy increases in age , it also increases in its cash value . That value becomes available for the policy owner to withdraw if a need arises , with virtually no questions asked . With interest rates and credit ratings what they are for the majority , having a strings free cash source can be a life saver . I hope that gives you some food for thought for your essay . I almost forgot to mention that the younger you are when you purchase your policy , typically the cheaper it is . Most companies lock that price in for you , so it is set for your whole lifetime . As a result , a policy purchased in one 's 20 's typically will be cheaper , and much easier to get than a policy purchased when one is in their 50 's or 60 's . If you 'd like more help , please feel free to contact me . This is a lazy week for most of us , and I 'll have some free time :-RRB- Thanks for asking , and good luck on your paper ! 