Young people in their 20s don’t think of life insurance as something that’s a necessity for themselves. Yet they are at the perfect age to buy a term or whole life insurance policy to take care of outstanding debts in case they die prematurely. And because young people are far more likely to carry a heavy debt load straight out of college, they need something to protect family members who co-signed for the loan. Or leave money to cover any expenses including the funeral and unpaid credit card bills. These are thoughts that no one likes to think as they’re a bit morbid, but it is a reality of life.
Young adults have the benefit of being in what’s known as a low-risk pool for insurers. They’re far less likely to have serious or life-threatening illnesses, and insurers reward that with lower premiums. The same goes for term or whole life insurance. And even though term life insurance only lasts for so long, it’s still worth buying while young. One reason is that life circumstances change over time. Someone who’s single in their 20s may be married in their 30s and raising a family. In the event they have an untimely passing in their 50s, they may still have a term life insurance policy in effect that benefits those who survive.
Take the quiz below to see how much you know about the benefits of getting life insurance at a young age. You might be surprised at what you learn!