Why Do I Need Life Insurance in My 20s?

Life insurance is something many people prefer not to consider, especially young adults in the prime of their lives. Many think, “Why do I need life insurance in my 20s? I’m not planning to die soon.” If your goal is to be a financially responsible adult, you need to have life insurance coverage. 

Lake Region Insurance Agency can assist you with all of your insurance needs. Our independent agents serve clients throughout Greater Minnesota. Connect with us today for a free life insurance review and quote. We will discuss your best options for your stage of life. 

How Does Life Insurance Work?

Term life insurance is relatively straightforward. You choose a policy term, generally 10, 20, or 30 years. And you choose how much coverage you want, for example, $500,000. Each policy will have annual premiums that you need to pay.

If you die within the plan’s term, your beneficiary or beneficiaries will receive the amount indicated on the policy. For most people, a spouse or child is their beneficiary, but you get to choose who gets the money. 

Whole life insurance carries higher premiums but builds up a cash value that you or your family can access. Your agent can help you determine which policy fits your needs and your lifestyle.

Why Do I Need Life Insurance in My 20s?

Accidents and sudden illness happen, whether we want to acknowledge the fact or not. Your family’s protection under a life insurance policy is significant, whether you are in your 20s or your 60s.

Here are a few of the primary reasons to consider buying life insurance as a young adult.

Cover Expenses

If you have a spouse, children, a business, or a house, a life insurance policy is crucial. Accidents and sudden illness happen, whether we want to acknowledge the fact or not. Having coverage for your family’s expenses is the top reason young people should have life insurance.

A life insurance policy can help your loved ones cover:

  • Mortgage Payments
  • Childcare Expenses
  • Credit Card Debt
  • Student Loans
  • Funeral Expenses

Having an influx of cash during a difficult time can bring tremendous relief to your family. Even young adults need to think about this. As soon as you have anyone who depends on you for financial support, it is essential to have a sufficient life insurance policy in place.

Work-based life insurance policies are a great perk of your job, but they generally do not offer sufficient coverage. And if you leave that job, you lose the coverage. So it’s essential to have your own policy, too.

Lower Premiums

Insurance becomes costlier as you get older, so it makes sense to buy a policy in your 20s. Premiums go up about 8-10% for each year you wait to get coverage.

Even if you do not yet have dependents, having this protection in place is wise. You can lock in lower premiums, and if you do get married or have children, you can change the beneficiary to indicate that.

Easy to Qualify

Healthy young adults may qualify for life insurance easier.

As you get older, insurance carriers may put more medical stipulations on your ability to qualify for life insurance. Young adults, however, often qualify for coverage by simply answering some screening questions. 

But if you wait, and your health changes, you will find that your ability to qualify is challenging. And your rates will be significantly higher. 

For example, a healthy 25-year-old will find it simple to purchase a life insurance policy. But if that person receives a cancer diagnosis at age 29, they are in a difficult situation and may not be able to obtain a policy at that point.

When you buy a policy as a young adult, you won’t lose it unless you cancel it or stop paying the premiums. Securing a life insurance plan in your 20s is one of the best financial decisions you can make.

Peace of Mind

Life is unpredictable, and no one is immortal. Buying life insurance doesn’t make you morbid. Instead, it shows that you are responsible and thoughtful.

When you secure a policy in your 20s, you are setting up your family for success. Of course, no dollar amount can ever replace a person. But life insurance for young adults helps protect their loved ones just in case a tragedy strikes.

Life insurance provides tremendous peace of mind for your family. And if the worst were to happen, your forethought will make the situation more comfortable for them to bear.

Whether you choose a whole or term life option, you will be able to provide for your family even after you’re gone.

Young parents need life insurance.

How Do You Buy Life Insurance?

There are many, many options on the market. It can feel overwhelming to understand and choose the right policy for your needs. 

It is best to work with an independent agent who can help you find the right fit for your needs. An independent insurance agent is not limited in the policies they can offer. They can shop from multiple carriers to help you choose a plan that works for you.

This is a serious purchase that can affect your loved ones’ future. Work with a trusted individual who will answer your questions and walk you through the process carefully. 

Even if you can’t afford a large policy right now in your 20s, purchase what you can. You are likely to find options that cost less than $20 per month. And talk with your agent about riders that will allow you to increase your coverage as your income goes up.

The Coverage You Need

The team at Lake Region Insurance Agency understands that life insurance is not an easy thing to discuss. This means too many young people ignore it, unfortunately. But in a few short steps, your Lake Region agent can help you secure a policy that will protect your future.

Stop by one of our offices in New London, Willmar, or Cokato, MN. We offer free insurance reviews and quotes and can walk you through the whole process with ease.

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