Should I get life insurance while I am in my 20s?

Deciding to buy life insurance is an important financial decision. 

Choosing to buy it when you’re in your 20s can help you gain important advantages that may not be available to you once you start to age. 

Five key reasons why you may want to purchase life insurance while you’re in your 20s

Lock in a lower cost over the long term
In general, the younger you are, the lower the cost of the amount you pay for life insurance. As long as you are in good general health, buying life insurance when you’re younger can mean you pay lower premiums for as long as you hold the policy.

With term life insurance, for example, your payment amounts can remain the same from the time you purchase your policy, unless you increase your coverage. As a result, buying it in your 20s can help you pay less for a policy every year that you own it versus holding off buying it when you’re older.

Qualify for coverage while you’re healthy
Age and health are two factors that insurance companies consider when setting rates for life insurance. Generally speaking, you tend to pay less for life insurance when you’re younger (and, presumably, healthier) than when you’re older. That’s because as your longevity starts to decline, the likelihood of a life insurer having to pay a claim begins to rise.

So, it’s not surprising that if your family has a history of cancer or other chronic health conditions, e.g., diabetes, getting life insurance coverage before you may start experiencing any medical issues could help you avoid higher rates that could make coverage less affordable.

Cover debt
Have a private student loan? Or a new car loan? Life insurance can shield cosigners (if you have them on your loans) from the responsibility of having to pay the balance if you pass on unexpectedly. And if you’ve bought a home together with your spouse or loved one, receiving the proceeds from your life insurance policy when you die can help them replace your income and ease the financial stress of having to make those required mortgage payments.

Financially protect family and loved ones
Life insurance can protect those who depend on your income for daily living expenses, especially if you:
-are the primary wage earner in your household.
-take care of an elderly parent or needy family member.
-are married with children (or are expecting/adopting).

With life insurance, the money they receive from your policy can ensure they gain the financial security and stability to maintain the standard of living you established for them and help them continue paying for everyday things like groceries, dependent care, education, etc., if you were not around to support them. 

Ensure your final expenses won’t be a burden
According to the National Funeral Directors Association, average funeral and burial expenses can run $7,848. Life insurance can give you the peace of mind of knowing that these final expenses won’t be a financial burden on your family or loved ones, in case something unexpected happens to you.

Buying life insurance while in your 20s is a good idea if you:

  • Have student loans, a home mortgage, or other unpaid debt
  • Have family who rely on you financially to live
  • Want to lock in coverage at a low rate
  • Are generally in good health
  • Want the security of knowing your final expenses will be covered, just in case something happens

Want to explore your specific needs for life insurance? Our professionals can examine your situation and help you find the right coverage for your needs and goals—at any age. Contact us today for more information.


Stay updated on our latest insurance advice and news by subscribing to our newsletter.

See what you could save

Don't let potential savings pass you by! Let us reshop insurance for you.

Share on Social