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Life insurance is just for middle and older aged people, right? There’s no need for life insurance in your twenties, right?
Perhaps, but the answer is it depends. Some people in their twenties might be the perfect candidates for life insurance if they meet the right conditions.
Is Life Insurance Right for You?
Before you make the decision to purchase life insurance or not, there are a few variables to consider.
Do you have a family? If you have a spouse and children, no matter your age, you’ll want life insurance. If you die, your family will be glad for the financial support as they recover emotionally from losing you. If you have young children, an ample life insurance policy will give your spouse time to take off work and stay with the children.
Even if you’re married but don’t have children yet, you may want to consider life insurance. If you and your spouse are both employed, you may think there is no need for life insurance. After all, your spouse has a job.
However, chances are you’re used to living on two incomes. If you pass away, could your spouse still afford the house payment and the standard of living you are used to? If not, life insurance would be a necessity.
The Common Objections
Young people have many reasons for not taking out life insurance. Some of them are valid, and some of them are not. Let’s look at a couple of those objections to purchasing life insurance early.
“I’m too young for life insurance…”
You might argue, you are too young to require life insurance. The majority of people do not die in their 20s. The odds are in your favor.
True, your chances of dying in your twenties are much slimmer than dying later in life, but it is for precisely this reason that you may want to consider taking out life insurance now. If you’re also healthy, your rates, especially for term life insurance, will be low. In fact your rates will be very low. Plus, you’ll lock in those rates for the life of your policy. When you’re in your late 30s, you might be paying fifty percent less a month than all your friends who waited to purchase insurance.
“I get life insurance through work. I don’t need to have a separate policy…”
Life insurance from work is great, but it should be considered supplemental. Say you stay at the job for 15 years. After that time, you’re downsized and lose your job (and your insurance, by default). The only problem is, during those 15 years you worked for the same employer, you had a non-life threatening cancer that you were able to treat. Now, if you go out looking for private insurance, it will be very difficult to find, and it certainly won’t be affordable. If you’d gotten life insurance privately when you were healthy, you wouldn’t have this issue. Employer life insurance is not dependable for the long-term.
There are plenty of twenty-something’s who don’t really need life insurance right now and can put it off. However, if you have a family or your parents would have a hard time paying your expenses if you were to pass away, you should seriously consider getting a life insurance policy.