Why You Should Buy Life Insurance in Your 20s and 30s

A young couple is excited to learn why they should buy life insurance in their 20s and 30s

Your 20s and 30s can be pivotal years, full of life changes and plenty of responsibilities. Life insurance might not be top of mind, but putting it off any longer could end up costing you more in the long run. So if you’re asking yourself, “should I get life insurance in my 20s or 30s?,” here are seven reasons why getting life insurance while you’re young is a good idea.

7 Reasons to Consider Life Insurance When You’re Young

There are plenty of reasons life insurance is a good investment no matter your age, but here are the main reasons you should consider buying life insurance while you’re still young.

  1. You’ll Likely Save Money

    In most cases, the younger you are, the better your life insurance rates will be. As a young, healthy individual, you’re less of a risk for the insurance company to cover, making it easier to secure a favorable rate on your policy.

  2. You May Have a Family to Take Care Of

    Many people in their 20s and 30s are starting families, and if that’s the case for you, you’ll want to make sure their financial stability is protected if you were no longer around. Life insurance is one of the easiest ways to do this.

  3. You’re Making More Money Now

    If you recently got a raise, a new job or have found another stream of income and are now making more money than before, there’s a chance your cost of living has also increased. You’ll want to make sure your family and loved ones have the financial support they need to cover said costs if you and your income were no longer around.

  4. You Have Debt

    In addition to end-of-life costs and living expenses, your loved ones will be responsible for paying off any debts you have. Having a life insurance policy in place can ensure they don’t have to worry about this financial hardship at the time of your passing.

  5. Your Life Insurance Can Cover Funeral Costs

    Did you know that the average funeral costs around $10,000? This can be a shocking price tag for your loved ones, but even more so if they do not have a financial cushion such as a life insurance policy in place.

  6. You Can Protect Your Business

    Whether you co-own a business or have complete ownership, you’ll want to be sure it can remain up and running in the event that you’re no longer around. A life insurance policy can help your business partners, loved ones and family navigate the complexities of keeping your business going in your absence.

  7. You Can Have Peace of Mind

    At the end of the day, a life insurance policy can provide great peace of mind by ensuring your loved ones and anyone relying on your income are financially secure if the unexpected were to happen. And the younger you purchase a life insurance policy, the greater your chances of receiving a favorable rate.

What type of life insurance should I buy?

When you’re in your 20s and 30s, your life is constantly changing so you’ll want to find a life insurance policy that’s able to evolve with you. One of the most common life insurance options for a young individual is a term life insurance policy. Not only is term life insurance considered the more affordable option, but it comes with flexible payment options and you’re able to set the length of the term and amount of coverage to best fit your needs. 

Life insurance, however, is unique to everyone. While some might find term life insurance is the better option, others might feel as if a whole life insurance policy is better suited for them. Learn more about the differences between term and whole life insurance. Our life insurance calculator can help you figure out how much life insurance coverage is right for you. 

Find Low Cost Life Insurance for Young Adults with SelectQuote

No matter your age, SelectQuote can help you find an affordable life insurance policy that fits your needs. We can compare coverage and rates from some of the most trusted life insurance companies in the nation in just minutes.

We do the shopping. You do the saving.