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Health Care
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Your Financial Life
By Transamerica / Sep 23, 2015

4 Reasons to Buy Life Insurance in Your 20s

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If you’re in your 20s, you might not feel a need to acquire life insurance. After all, you’re young and healthy. Why should you care about life insurance at this time in your life? Well, honestly, your 20s just may be the perfect age to think about life insurance, and not just for protection. There are other benefits for getting life insurance while in your 20s. Keep reading to find out what those benefits are.

1. It’s cheaper in your 20s.

Insurance may be much more obtainable—and less expensive, when you’re young and healthy. This is because as people grow older, their health and longevity tends to decline. Therefore, the older people are, the higher their premiums will be. By purchasing life insurance at a young age, such as in your 20s, you more than likely will pay lower premiums for the term of the policy.

2. Life insurance can be a very important addition to your overall financial plan.

Cash value life insurance such as whole life insurance, universal life insurance and variable life insurance can offer more than just a death benefit. That’s because whole, universal and variable life insurance offer the potential for cash value accumulation. Of course to take full advantage of this feature on these policies you should start early. Generally speaking, your 20s are also when the premiums are less than if you were to purchase a life insurance policy later in life. So if you want life insurance protection for you and your loved ones, as well as the potential for cash value accumulation in your policy, consider one of these types of life insurance.

3. Even if you don’t think so, you need the protection.

Consider your financial obligations, especially your student loans. The class of 2015 will graduate with about $2,000 more in loan debt than 2014, at an average of $35,051 per student. If your parents cosigned on your student loans, they could be held responsible for your debt if something happens to you. Life insurance may be very beneficial to you and your parents because the death benefit proceeds from your life insurance policy can help cover your student loans or other debts.

4. Are you married with children?

If you’re married and have a family, or plan to get married and begin a family, how will your spouse and children carry on should something happen to you? Life insurance can help pay off loans, mortgages, and other expenses for your family. Life insurance may also help with estate taxes if your beneficiaries will be inheriting assets upon your passing.

Don’t think of insurance as something that’s only for older people. Life insurance is just as important for younger individuals as it is for people who are further along in life. Assess how much coverage you will need, along with the type of policy you think is best for you. Remember, even in your 20s, you really aren’t too young to think about life insurance. You actually may be at the perfect age.