Is Investing In Life Insurance At A Young Age A Smart Move?

Mark Burback | Life Insurance | 25 Sep, 2015 | No Comments

Although it may surprise you, life insurance is actually the most affordable when you’re young. That’s right while many people consider life insurance to only be necessary later in life, this could not be further from the truth. Young adults can save significantly by investing in life insurance at any early age. With the ability to quality for exceptionally low premiums on the basis of good health, young adults are able to obtain some of the cheapest life insurance rates possible.

However, many adults still remain uninsured, and often, this is due to a lack of awareness or even an overall distrust. While millennials are more skeptical when it comes to their investment habits, life insurance can actually be a worthwhile investment. Policies vary and premiums range, and while investing in life insurance today may not be the right choice for everyone, it’s important to be aware of the what the options are.


Purpose Behind Life Insurance In The First Place

Perhaps there is no better place to start than by defining what the purpose of life insurance is in the first place. After all, even as a single adult in your mid-20s, you may be wondering why you even need to think about life insurance. While few people in their 20s think of themselves as in need of life insurance, many are carrying around student debt, student debt that is transferrable. While you may not realize it, your death can have a financial impact on your loved ones. Life insurance is designed to protect your loved ones in the event of your untimely passing.

However, life insurance isn’t just preparing about potential death. Life insurance not only protects your loved ones against unforeseen financials burdens, it also ensures your eligibility for insurance in the future, even in the event that the state of your health changes. Life is unpredictable. Although we like to think were invincible sometimes, life has other plans. While there are never any guarantees in life, life insurance helps protect your future and the lives of your loved ones.

Do You Really Need Life Insurance Now?

This is a question that you are undoubtedly asking yourself. After all, with more bills than you probably care to have, adding another expense to the list may not be at the top of your bucket list. In fact, you’d probably prefer to put off any additional expenses if possible. However, while this may seem counterintuitive, investing in life insurance while you’re young and healthy can actually be a wise move. Often, you’ll find that you’re able to qualify for extremely low premiums. This can help you maximize your benefits and future eligibility all at a minimal cost. While waiting until you need it might seem like a good idea, in the long run, it can be detrimental. Unfortunately, life insurance only gets more expensive and difficult to obtain as you age and begin to develop health problems. The older and more health problems you possess, the more your premiums are going to be.

Benefits of Getting Life Insurance Now

Would you like to know what some of the benefits are to becoming insured now rather than a few years down the road? While investing in life insurance for yourself is ultimately a very personal decision, there are certain advantages to becoming insured now that you should at least be aware of.


Save a Lot of Money

First and foremost, investing in life insurance at a young age can save you a lot of money. There is hardly any other time if your life where you will be able to qualify for such low premiums. If you buy life insurance at a young age, you can qualify for lower premiums even as you age. If you were to develop a chronic condition at an older age and were not insured, you would face difficulties in even qualifying, and at the very least you would be facing exceptionally higher premiums. For a small sum, investing in life insurance in your 20s can save you substantially in the long run.

Outstanding Loan Security

It’s a reality that countless adults face today, outstanding student loan debt. If you have a significant amount of student loan debt or a home mortgage, you can leave your loved ones in overwhelming debt. Life insurance can help provide a way for your parents to help pay off this debt in the event of your passing. While this may be the last thing on your mind in your 20s, it’s important to plan for the financial security of your loved ones. Outstanding student loan is a significant financial burden to bear, life insurance can help protect your parents from going financially under.

Leave a Legacy

Do you one day hope to leave a legacy when you leave this world? Are you passionate about a specific cause? Is there something that you would like for people to be able to remember you by? Is there an issue that it is so important to you that would like to leave behind a legacy with? If so, it will often not cost you anything additional to include this legacy within your life insurance plan. You will need to check with an expert on your specific tax situation, however, as long as you name a charity that the IRS recognizes as a nonprofit organization as a beneficiary, you should have no problem.


If you’re in your 20s or 30s and are interested in buying life insurance, feel free to explore some of your options here, or contact one of our insurance experts to discover all of your options.

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