When you are in your 20s, you are likely thinking about your friends, family, career, and goals. Very rarely do people in their 20s consider the need to purchase life insurance – but they should. As an overlooked policy by young people, life insurance is the ultimate financial tool for those big “what if” moments. It is a mistake to assume that only older couples with children and homes need life insurance. In many ways, buying life insurance in your 20s pays off. Here is how.
It is cheaper.
The most obvious reason for taking out life insurance now is because it should be much cheaper. Life insurance is a policy that gets more expensive the older you get and the more health conditions you develop. The chances of you developing a health condition or dying in your 20s is relatively slim, so you can secure affordable premiums for great coverage. Now may be the best time for you to look into coverage. Buying a term life policy or a whole life policy in your 20s can ensure you get cheap premiums for decades to come – or even for the rest of your life, depending on which policy you choose.
It allows you to protect those you support financially.
If you have people relying on your income, a life insurance policy will offer them a financial safety net should the worst happen to you. This could be particularly vital if you have any credit card debts, auto loans, or a mortgage to pay off. By securing life insurance, you can save your loved ones from taking on a financial burden in the event of your passing.
It supports the policy you already have through work.
Although having life insurance through your employer is a great benefit, it is often not enough for most families. They tend to offer one to two times your salary, which could leave your family struggling when you are gone. It is best to take out your own personal insurance coverage.
There are different policies to choose from.
In addition to employment-based life insurance, there is term and permanent life insurance. Term insurance is set for a period of time, such as 10 or 30 years. Permanent coverage lasts your entire life and builds cash value. Which policy is right for you will depend on your unique situation.
You can create an investment vehicle for retirement.
Buying permanent life insurance in your 20s not only protects your loved ones’ financial future, but it could be a good investment for yourself. A permanent policy could grow into a sizeable cash value as the years go by. You can then borrow against this amount.
Life insurance is surprisingly affordable.
Although there are policies that get pricier the more features you add on to it, life insurance tends to be more affordable than people think. Most think that life insurance costs around three times as much as it really does. Talk to your insurer about how to secure a reliable, affordable policy – you may be surprised at the cost!
The bottom line is if you are in your 20s, it is worth having a look at life insurance. If someone relies on your income, then this is especially important. Locking in low premiums now is something that your 30-year-old self will thank you for. If you are still undecided, talk to a professional life insurance agent who can help you assess your needs and weigh up the benefits of locking in a policy now.
Skip the search of finding the right life insurance provider for your needs. Visit Mayer Insurance in Apple Valley, Minnesota to secure your coverage today. We take the time to help you review your options, needs, and ensure you understand the contents of your coverage.
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