Why You Should Consider Life Insurance In Your 20's

Life insurance is an integral part of your future financial planning. Life insurance protects your loved ones in case of the unthinkable. And much like any insurance for young people, those in their 20’s can be at a great advantage when it comes to nailing the best rates and coverages.

First there is the question of WHO would need life insurance coverage. For many, the need for life insurance wouldn’t kick in until marriage, children, dependents (whether children or not), or debt that someone else would be responsible for in the event of your death. However, there may also be instances where you choose to have life insurance in case you have someone in your life (nieces, nephews, god kids all come to mind) that you feel would benefit greatly from a cash policy if you were no longer around.

For someone in their 20’s all of these scenarios are possible and likely, so looking in to life insurance at this stage would be a worthy cause, even if you are young and healthy as an ox. Life happens and things change, leaving your family and loved ones vulnerable if you do not have life insurance to protect them. Here are some important things to remember when shopping for life insurance in your 20’s:

You have the advantage of youth on your side

A young and healthy 25 year old will get much more desirable rates than a healthy 45 year old. Insurance companies use algorithms to predict your risk and the possibility of cashing in. Age is a factor you have no control over but will affect your pricing substantially. Someone in their 20’s may consider a longer policy with a higher payout for less money than someone more advanced in years that would pay substantially more for the same coverage.

Make your health as attractive as possible for better rates and acceptance

Seriously- don’t smoke, don’t drink in excess, don’t engage in risky behavior (racing and extreme sports for example), stay within a healthy weight range, get regular checkups, eat a balanced diet. In this instance, these self-care behaviors will actually pay in lower costs and quicker/easier acceptance. Also, if they do a medical exam as part of your coverage (which they regularly do, so don’t be surprised), you will be able to pass that much easier. Smoking alone will submarine your great rates- so just don’t, for the good of your wallet and your lungs.

Even though you are young and healthy, life can change in an instant

Don’t skip out on insurance because you don’t think that you will need it in your youth. Life insurance is not one of those things you want to put off just based on age alone. Life circumstances and your responsibilities will dictate whether you need life insurance, not just age alone. There are plenty of older people who don’t need life insurance for their stage in life, just like there are plenty of younger people who do, regardless of their youth and vitality.

Get life insurance before something changes

Again, life is unpredictable from moment to moment. Life insurance is harder to get when you have chronic illness or history of illness and disease. Getting insurance while you are healthy allows you to carry life insurance for the long term, regardless of any changes that happen to your health. If you have a policy and 5 years later, become uninsurable, you will be infinitely happy that you thought ahead

During the transition from your youth to full-blown adulthood, there are certain considerations that should not be taken lightly, and for a good purpose. Life insurance is one of those. Have fun, enjoy your youth, but do it responsibly and with your future in mind.