Here is Why You Should Buy Life Insurance in Your 20s and 30s

Last Update: September 7, 2021 Insurance

Young adults today face several financial challenges, from finding ways to save for retirement to dealing with massive student loan debts. One of the things that young people in their 20s and 30s tend to be less concerned with is having adequate insurance. Unlike older consumers, the 30 and under crowd is more likely to put off things like health and life insurance. It is easy to think that you do not need life insurance when starting your career because you are somewhat still healthy. You couldn’t be more wrong.

If you haven’t bought life insurance yet, the present is the best time to do so. It is impactful and more practical than getting insurance in your 40s or 50s. Read on for more information on life insurance policies and a few reasons why you should consider buying life insurance young.

Term Life Policy

Many financial advisers recommend that millennials buy the term life policy to get the most out of a standard policy.

This policy offers coverage for a specified period, say 30 years. Once this time elapses, the plan is terminated. If you wish to keep going, you will have to renew it for another set term or convert it to a permanent life policy, which will cost you even more.

Whole Life Insurance

This policy offers full coverage for the rest of your life. All you have to do is keep paying the premiums regularly.

Its premiums are more expensive when compared to those of term life policies. On the plus side, the plan grows tax-free and racks up cash value as time goes by. This will save you in the long run because You can borrow money against the cash value. Your insurance policy could be your low-risk savings vehicle.

Reasons Why You Should Get Life Insurance Young

  • To save your family from your debt troubles

One of today’s graduates’ biggest problems is the massive student loan debt they leave college with. If something were to happen to you before you clear your debt, your parents or guarantors should pay the entire loan. This happens especially if they took out a PLUS loan. In such a case, the loan balance lands on their plate if something tragic happened to you.

Or if you’re married and you and your spouse have acquired significant amounts of credit card debts on an account you share. In such a case, you have to ask yourself whether your significant other would be capable of handling the debt alone.

  • It is economical

The amount of money you pay for life insurance (Life insurance premiums) is based on several factors. These include your age and overall health. The younger you are, the less you’ll pay for insurance. This is particularly true if you don’t use drugs, engage in risky activities for fun, or have any preexisting health conditions. Young and healthy people are less likely to be a liability to the insurance company. Looking at rates now can set you up with a reasonable rate for the rest of your insurance policy period. This will save you money along the way.

  • Your employer’s plan will not be enough

Buying yourself a separate policy is still the smart move. For example, if you are incapacitated and can’t work, your employer’s policy lapses, and your separate policy will come in handy. Depending on your policy type, you may be able to borrow against it to cover your medical costs and other basic needs.

Buying a separate policy would also come in handy if you’re let go from work, you change jobs, or your employer’s business flops.

  • Your employer’s plan may not be the best for you

Your employer may offer you life insurance, but adding coverage to it will be more costly than buying a separate policy. Sometimes the policy rates offered through the group life insurance are unreasonably higher, and they may not provide all the features you want most.

  • To cover burial costs

This is a tad overboard, but you can get it. A life insurance policy could save your loved ones more stress in case of an unexpected accident. There is nothing worse than stressing about cash while grieving.

  • To get it over with

If you want to check something off your to-do list, apply for a life insurance policy. It is easy to apply because of the numerous forms of modern technology available today.

The cost of your life insurance solely depends on the type of policy you get, and more often than not, it is less costly than you imagine. A good trick is to target a death benefit equal at least 5 – 10 times your regular income. You can use a financial planner to help you get more insight into the amount of protection you need.

Remember that life insurance will be more expensive if you get it for a  longer period of time. So take this time to buy yourself one, and your old self will thank you for it.



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