No one ever seems to want to talk about life insurance, however it’s important to face the reality that we won’t be around forever.
But being young, single, and healthy means you have nothing to worry about. Right?
Unfortunately not.
Obtaining life insurance is one of the most important financial moves you can make. And for the best deal on life insurance, it often pays to buy when you’re young and healthy.
In general, with most things when you’re making any sort of purchase, the more features you desire, the more it’s going to cost you.
And the same applies to life insurance rates. Shopping when you’re least in need can minimize your premium for the long-term. Check out this list of the best term life insurance companies to see your rate in minutes.
Do You Need It?
You may question why you’d take out life insurance when you’re young and single with no dependents.
For many young people who have just embarked on a career and are earning a good income, the idea of allocating a (small) portion of that income can seem unnecessary. But if you’re presently uninsured, here’s some incentive to get cracking . . . .
Right now, you’re the youngest you’ll ever be. Putting off getting life insurance can cost you more in the long run, with increased premiums.
The fact is, changes in circumstances are inevitable. As time passes, things change, and so do your insurance needs. As people make their way through life, most acquire debt, get married, have kids, and so on.
By getting in early, you’re essentially securing a financial plan for your future, at the best price possible. If you get in while you’re young and healthy, you can minimize your premium over the life of your policy.
Plus, as long as you’re healthy and don’t smoke, you’ll probably get the cheapest premiums you’ll ever pay when you’re young.
Insurance Is for the Unexpected
Why am I in the office?
Although you may be young, single, carefree, and in excellent health, in the event of your unforeseen death, your immediate family would be responsible for any financial burden you leave behind, including funeral expenses. You may be fit as a fiddle this very moment, but health can change in an instant, and send premiums skyward, literally overnight.
In short, the best time to buy life insurance is when you simply don’t need it.
Many people don’t start thinking about investing in coverage until their health begins to deteriorate, or they’ve well and truly established a family.
Choosing the right life insurance coverage isn’t always black and white. A number of factors can come into play. If you haven’t looked into life insurance, shop around and explore your options. You’ll be surprised just how affordable life insurance can be.
Readers, how old were you when you first purchased life insurance? Is it worth it?
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here and here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
coupontammy says
We have life insurance for both myself and my husband through his employer. Do we need to buy additional? Should we have a separate policy now that we are paying for before he retires?
Brian So says
It depends how much coverage you feel you need in case one of you passes away. Consider if it’s important to both of you paying off your mortgage, having an education and emergency fund and final expenses when either of you goes. Then add in the income needed to replace the lost income. You can find many life insurance calculators to figure this out for you.
If it turns out you have enough life insurance coverage already, then there’s no need to buy anymore. If the calculator indicates you need more, then you should speak to an insurance advisor about your options.
Robert Farrington says
You really only need life insurance to replace income during your earning years. If you’re in retirement, and don’t need his income anymore to live off of, why pay for insurance?
Susan S.,TN says
It’s a hard subject to talk about, esp. with young adults. You never want to think about dying much less dying young. But it makes sense to have because accidents happen and everyone needs to be prepared