Facing the question, “when should I get life insurance?” is often difficult at any age. The thought of even needing to use life insurance at a young age can be even more uncomfortable. For a healthy, young, unmarried adult, it can seem like an unnecessary expense upon first glance. However, it is important not to put off purchasing this vital coverage. Below, we outline when you should begin to research insurance options and the reason why it is better to get life insurance when you are young.
Why do I need life insurance?
Life insurance provides financial care for yourself and your loved ones after you are deceased. This may include funeral and burial expenses, debt elimination, and support for any individuals who depend on you financially. In your early twenties, it is a good idea to begin the process of selecting your life insurance policy. There are many options, price points, and coverage durations available in the marketplace, and your insurance agent can present choices that fit your needs. It is better to have life insurance when you are young and not need it, rather than needing it but not having the appropriate protection.
Why do I need it now?
Because you are young and healthy, you will be considered a “low risk” for most companies. This allows you to receive coverage at a very affordable monthly rate for life insurance. Life insurance becomes more costly as each year goes by, so it is not something you want to put off. By obtaining coverage at an early age, you are taking steps to provide for the needs of your future loved ones while also securing the best possible cost for yourself. Keep in mind that life insurance is not a one-time purchase, and you may need to re-evaluate the policy as you age, have dependents such as a spouse or children, and accrue debt such as a home mortgage.
What will my life insurance cover?
Your life insurance can cover a number of expenses such as co-signed debts like private student loans, a mortgage, or car payment, medical bills, and other final expenses. If your parents co-signed on any of these expenses when you were younger, they would become responsible for the payments and debts. Additionally, if you plan to have a family someday, this policy also provides funds for your future loved ones so they do not have to dip into savings as they adjust during their grief. Even in your twenties, some of these situations may apply to you now or in the future. Your agent can outline the best policy for your age and health today, but remember that your insurance needs can change as you grow older, have children, and increase your income and assets.
The bottom line is that for most healthy young adults who are non-smokers, the monthly cost of life insurance can be the equivalent of a few cups of premium coffee. It is never too early to obtain coverage and begin planning for the future, especially when you are young and can receive the lowest possible premium. Speak with your agent today to determine the policy that is right for you.