Should I Get Life Insurance in my 20s?
Buying a life insurance policy may be one of the last things you want to think about when you are in your 20s. But whether you’re paying off student loans or trying to build your financial future, buying life insurance while you’re young may be one of the best financial decisions you can make.
Young people and life insurance
Most young people don’t think about life insurance, because many believe it’s something only parents buy to protect their children—or to make sure the surviving spouse can manage the family’s expenses. While protecting your family is important, whole life—or cash value—insurance offers a whole lot more.
3 reasons to purchase life insurance when you are in your 20s.
- It can help pay for life’s expenses.
The living benefits of a whole life insurance policy can help pay off any student loan debt you may have accumulated.1 The policy can also cover any other unpaid debts or final expenses should you die unexpectantly.
- It can grow wealth over time.
Whole life insurance accumulates cash value, which can be used in the future for whatever purpose you desire, like paying for a wedding, helping to pay college tuition, making a down payment on a home, or supplementing retirement income.
- The earlier you buy the better.
Life insurance purchased today can also protect your future insurability. And the younger and healthier you are when you purchase insurance, the less expensive it will be. Once issued, whole life insurance is in place for life, even if your health changes, assuming that all required premiums are paid when due.
Even if you’re young and single, don’t overlook the benefits of life insurance.
How to Get Lower Rates When Getting Life Insurance Young:
- Assess Your Coverage Needs: Before purchasing life insurance, assess your coverage needs based on your financial obligations, future goals, and potential responsibilities. Understanding the amount of coverage required will help you find the appropriate policy that balances affordability and adequate protection.
- Choose the Right Type of Policy: There are different types of life insurance policies, such as term life insurance and permanent life insurance. Term life insurance provides coverage for a specific period, while permanent life insurance offers lifelong protection with a savings component. Depending on your circumstances and objectives, selecting the right type of policy can optimize your premiums and benefits.
- Maintain a Healthy Lifestyle: Insurance companies consider your health when determining premiums. Leading a healthy lifestyle by exercising regularly, maintaining a balanced diet, and avoiding risky behaviors such as smoking or excessive drinking can contribute to lower rates. Some insurers may even offer discounts for policyholders who actively engage in healthy habits.
- Work with an Experienced Insurance Broker: Navigating the intricacies of life insurance can be overwhelming. Working with an experienced insurance broker, such as myself, can help you understand your options, compare quotes from different insurers, and find the best policy to suit your needs and budget. As an insurance broker, I am dedicated to providing personalized guidance and securing competitive rates for my clients.
Conclusion: While life insurance may not be top of mind in your 20s, there are compelling reasons to consider it. The advantages of getting life insurance early, including financial protection, lower premiums, long-term planning, and future insurability, make it a wise investment for young individuals. By assessing your coverage needs, choosing the right