Should You Get Life Insurance When You’re Young?

When you’re still young, generally, it isn’t always a priority to apply for a life insurance policy. Naturally, so as in your youth, you feel as if you’ve still got the whole world ahead of you. It’s also when you’re younger that your financial responsibilities may be one on top of the other. There’s a mortgage to pay, a car loan, then if you’re married, you’ve got kids depending on you. The list goes on, and on that, it’s to no surprise that your desire to purchase a life insurance policy may always slide even lower on your list of priorities.

However, it’s actually the best time to buy a life insurance policy when you’re young. It’s a financially savvy move that you’ll be thanking yourself for doing when you get to the later stages of your life. Just think of it as sacrificing a few trips out to a restaurant or shopping in exchange for financial stability, just in case something unfortunate happens to you. 

So yes, the answer is that you should get a life insurance policy when you’re young. Here are some reasons you should keep in mind in case you still need convincing:

1. Reduces Stress For Your Family When Death Happens

Death happens to everyone. Young or old, no one is exempt from it. It’s a certain thing that’s bound to happen. The only uncertainty has to do with when death will come. As the saying goes, “death comes like a thief in the night.” So, it’s not something that anyone can ever determine. More so, when a person dies of a sudden cause.

If you’ve got a family depending on you, death can also put a lot of financial stress. This, on top of the emotional pain that they’re already dealing with, can be too much to handle. There’s no denying the fact that death can be expensive, and this has to do with funeral or burial costs. Funeral expenses can run anywhere from above 1,000 US dollars.

When this happens, you’d want to reduce stress for the loved ones that you’ve left behind. Most life insurance policies include an amount to cover funeral expenses. With this, your loved ones don’t have to be saddled with this expense.

2. Opportunity To Lock-In Good Rates

When you’re young, you can naturally be given better rates than the older population can be. When calculated against the average life span of a person, when you’re in your 20’s or 30’s, you’re considered to have more years to live. So, you’ve got more years also to stretch out the payment of your premiums.

The direct result is that you can pay for lower monthly premiums plus also a reduced amount of the coverage to cover your lifetime. When you’re young, you’re also most likely to find cheap life insurance with good coverage.

A significant factor here also to consider is your health. The condition of a person’s health is also one of the common deciding factors of insurance companies when deciding on the amount of the premiums. When you’ve got pre-existing conditions, this can make your rate more expensive. But, when you’re younger, generally, you’re still free from high blood pressure and high cholesterol. Hence, insurance providers are more inclined to give you better rates when you’re younger.

Melissa Thompson of Diabetes Life Solutions points out ” the older you get, the more likely you’ll develop some type of health condition that will make life insurance more expensive.  Once common chronic condition is Diabetes that impacts over 34 million people in the United States alone.  Life insurance for diabetics, either type 1 or type 2, will almost be more expensive compared to people without Diabetes.  If a person locks in a policy before developing Diabetes, their rates would not increase due to a change in health.

3. More Policy Options

Along with better rates and lower premiums, another advantage of buying an insurance policy when you’re young is that you’ll be presented with more policy potions. That way, you’ve got a higher opportunity of finding the right policy for you. Generally, the rule of thumb for you to follow is to look for the insurance policy that gives you the most coverage for the least amount to pay for.

Here are two of the best insurance options to buy while you’re young:

  • Whole life insurance offers coverage for the remaining years of your life, for as long as you’ve paid the premiums. With whole life insurance, you’ll also be able to enjoy a cash value account from your premium. This accumulates as your tax on this insurance also gets deferred.
  • Term life insurance offers coverage for a fixed period, such as 20 or 30 years, for instance. Once this term expires, the policy is terminated. The only exception is when you’ll renew the insurance for another term. Another option is to convert it to a whole life policy. 

4. Protect Your Loved Ones

This fact is one of the most apparent reasons why it’s a resounding yes to purchase an insurance policy even when you’re young. At your 20’s, you may not have a family yet or any dependents. But, this could easily change in a few years’ time. Before this expense adds up, you’ll want to be ready. After all, when you’ve got children, your purpose in life always is to secure their future and to protect them from uncertainties. 

For instance, at the moment, you’re still paying off your car loan, or you may also be paying your student loan and credit card debts. You may have to continue paying for this for many years to come in your life. Should you pass away, you’ll want to protect your family from the burden of having to pay for these debts. This, you can do with a life insurance policy.

When you die, if you’ve got dependents, you wouldn’t want their future to get destroyed. You’d still want your family members to have sufficient savings to get them into their education and to meet their basic needs. Without a life insurance policy, this can be very difficult, as without your income, now they’ll have to use up their savings account to cover their needs. This can cause a significant hole in the finances.

Should anything happen to you, you’ll want to rest assured that the future of your loved ones will still be in place.


Even when you’re still in your 20’s, it’s never too early to be practical about your finances. Rather than spending your hard-earned money on things that you know are only fleeting, why not spend it instead for a worthwhile investment. Of the man investments that you’d wish to add to your portfolio, a life insurance policy should be one of them. These reasons enumerated above should be more than enough to convince you that indeed, it’s a worth-it move.

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