Did you know that 65 percent of 18-to-29-year-olds don’t have life insurance?
It’s also true that most of these people don’t have it because they feel they don’t need it, due to being “young and healthy.”
However, the fact is that if you’re in your 20s, you do need life insurance, even if you are comparatively young and well. There are a lot of great reasons why – here are six key ones:
1. Student loans
Even if something were to happen to you, your estate would still responsible for any debts, including student loans – increasingly a given for many 20-year-olds. A life insurance policy can help pay off debt in a case like this.
2. Aging parents
Perhaps you don’t have a
spouse, children or other dependents yet, but you may have aging parents. Life
insurance can help care for them in your absence.
3. Lower rates
A younger person, in general, is healthier and therefore a “better risk” for insurers, leading to lower rates. This alone is a great reason to get life insurance early in life.
4. A cause
Many people in their 20s are passionate about certain causes, but may not be able to support them to the extent they’d like. However, proceeds from a life insurance policy may be donated to causes of your choosing.
5. Family medical history
If there’s a better-than-normal chance of you developing a certain medical condition later in life, it’s wise to get life insurance now. Otherwise getting a policy may be more difficult and costly down the road.
6. The usual suspects
Of course, the basic reasons to have life insurance still apply to 20-year-olds. It’s important to have peace of mind that if something were to happen to you, your final arrangements would be covered, your dependents would be cared for, etc.
Making the Complex Simple
Life insurance may not be the most exciting topic and it may seem an unnecessary thing to worry about for someone in their 20s. However, there are many great reasons to look into life insurance coverage, even at a young age.
For more information, see “Yes, Even These Five People Need Life Insurance.”