Five Reasons to get Term Life Insurance in your Twenties
Why would you need life insurance if you are in your 20’s? I’m sure you have plenty of other things to be concerned with at this point in your life! But, I can think of at least five reasons why you would want to get life insurance while you are still in your twenties.
- When you are in your twenties you are probably in the best health you will ever be. Did you know one of the main factors in the price on your life insurance is based on your health? Why not apply while you are at your peak?
- Another major factor in the cost of life insurance is your age at the time you apply. Carriers can calculate age differently. One method – referred to as ‘age nearest’ – uses your age at your closest birthday. For example, if I’m 22 and am more than 6 months from my 23rd birthday, the carrier will deem me 23 for pricing purposes.
- People in their twenties are usually just finishing up their education, and you know what comes with that – college loans. Life Insurance is a great way to cover that debt and make sure that it does not get passed on to someone else, should you pass away. If something were to happen to you, the life insurance would be able to take care of paying off these loans so your family wouldn’t be burdened.
- Purchasing life insurance at a young age gives you some insurability. This is an often overlooked reason for purchasing insurance at a younger age. Many of term life insurance carriers offer a term conversion option with term policies. This would mean that you could have the option to convert that term life insurance to a permanent product, such as a whole life policy or maybe a universal life policy depending on what each carrier offers.
- Another reason the get a term life insurance policy in your twenties would be to plan for the future. Even if you don’t have spouse or a family, you would be preparing for your future while you are young. You can lock in the coverage amount and premium while you are in peak health and at an age when prices are generally cheapest.
About the author: Pam Fortier has been in the life insurance business for over 30 years. She also holds both a LUTCF designation and a CISR designation. Pam is adept at helping clients select the coverage they want at the price they can afford. You can contact Pam at 1-800-651-1953 or PFortier@Pivot.com.