Should I Get Life Insurance In My 20s? YES You Should! Here’s Why…

Why Does Someone So Young Need Life Insurance?

Life insurance in your 20s is just silly, right? You’re in your prime and have a whole life ahead of you. What a waste of cash.

Ummmm, no. You can’t generalize about people or their situations. Life insurance in your 20s could be a smart idea for several reasons.

One of the things I love about my job is the changeable nature of every case.

Here are some excellent situations where life insurance is recommended in your 20’s.

1. Protecting Your Loved Ones

Life Insurance can protect your birth family and/or it can protect your chosen family.

As I mentioned above, everyone lives very different lives. Some people wait until their 40s to get married and have kids, while others start very young. If you’re a young parent and have started a family in your 20s, then life insurance is a must have.

…especially if you have a mortgage or debt and are responsible for paying the bills.

Sure, you’re young and fit, but things do happen. There is no excuse for young parents not to have life insurance as it is so affordable in your 20s.

2. Protecting Your Parents from Your College Debt!

College and university cost a pretty penny. Let’s say you decide to go to law school in the States, and your parents cosign loans, so you get some terrific rates.

The deal is as soon as you get that high-paying job, you’re taking over the monthly payments.

But what happens if you get an illness or have an accident and die prematurely? Your parents are responsible for the money owed. A simple term policy makes sure that won’t happen.

“Young and single 20-somethings probably haven’t thought much about life insurance, and that’s OK. If you’re 25 with no debt you probably don’t need a life insurance policy, Ginty says.”But if you’ve co-signed a student loan with your parents, you may want to consider “getting a life insurance policy because you have a financial obligation that could impact your parents. If you suddenly died,” some private lenders have clauses in their contracts that require the loan balance to be repaid immediately. Your family may need“a life insurance payout to cover that debt.Or perhaps you help support other family members — siblings, parents or grandparents. What happens to them if you aren’t capable of covering their expenses? Do they depend on your income? If so, then taking out a policy is a good bet.”Life insurance is confusing—here’s everything millennials need to know, CNBC.com

3. Young High Net Worth Entrepreneurs

There are so many variations when it comes to life. Another great example is entrepreneurialism.

A 20-something may earn a high income or own a VERY successful business. If that’s the case, there are corporate interests they may want to protect, and life insurance provides the perfect vehicle to do this.

You’re young, high net worth, have maxed out your TSFAs, have unregistered investments and invest in real estate. A whole life policy may be a good strategy to diversify your holdings and plan for tax liabilities into the future.

4. Establishing Future Insurability

As I mentioned above, health is typically good in your 20s. However, this can change radically as you age. Looking into protection while you’re young and fit can protect you later in life.

If you buy a policy with a guaranteed insurability rider, you can maintain protection even if your health circumstances change.

…without applying again or providing proof of insurability.

Another perk? If your policy has a conversion option, you can opt into a permanent one without providing proof of insurability if you want continued coverage past your term.

Nice!