If you’re like most 20 year olds, there’s a good chance life insurance is pretty far down the priority list, if it’s even on there are at all. But term life insurance for 20-29 year olds is quite possibly the cheapest life insurance on the planet, and there’s good reason to have it.
Term life insurance for 20-29 year olds isn’t about the likelihood you’re going to die; in fact, it’s quite the opposite. It’s actually just for the extremely unlikely event it does occur, the loved ones you’ve left are cared for.
For those of us in our twenties, our life expectancy is nearly 90 years old, but it’s only on paper. You still have a need to prepare, just in case. Much like your car insurance, which you hope to never use either, the same goes for term life insurance for 20 year olds. If you have health conditions such as diabetes, high blood pressure, or if you’re searching for life insurance with lupus or overweight life insurance, let us help you find the coverage you deserve.
Life Insurance For 20 Year Olds
Most 20 year olds don’t buy life insurance, not because they don’t want it, but because the topic never even comes up. Most young adults are much more preoccupied with things like concerts, the new iPhone, or planning a trip to the beach with friends.
Unfortunately, it’s a greatly under covered need which really should be taken care of sooner than later. There are plenty of reasons a person in their twenties may need life insurance:
- Lost Income
- Kids (or maybe you’re searching for life insurance while pregnant)
- Burial and Legacy
Those are the big four, but there are plenty of other reasons as well. Basically, as you become a young adult and you gain more and more freedoms, you also gain more responsibility. Some of those responsibilities are things you need to look after, dead or alive.
Life Insurance For Income
One of the biggest reasons for term life insurance in your 20’s is for the loss of income should you die prematurely. You might be just getting your first big job, or even first big promotion. If you died today, you would be leaving a lot of potential income, or human capital, on the table which someone may depend on. If you think about it, you have a LOT of working years ahead of you, which means a LOT of money to make.
Income For Spouse
If you’re married, it’s likely your spouse depends on your income, even if you are a dual income household. The replacement of income is going to aid your spouse in keeping the lifestyle you have created together, and it’s going to provide security from financial struggles in the coming years.
Money can obviously never replace you, but if you can at least remove financial struggle from the table should you pass away, your spouse can grieve without the worry of a monthly bill constantly reminding them of what happened. Pictures with a smile are how your spouse will want to remember you, not a bill for your burial or a foreclosure notice.
Income For Children
If you have children, you have even greater responsibility to transfer your income forward. They are going to need, at least, the basics like food, clothing and shelter until they are old enough to fend for themselves.
No parent could imagine leaving their kid all alone in the world, and it’s not fun to think about it, but it’s something you need to cover just in case. If nothing else, you’ll want to leave enough for the basics, but you may need to consider things like school costs, childcare costs, or even a little fun money for them.
Life Insurance For Debt
Debt is the next largest things you’ll have to think about if you’re looking to buy term life insurance. For 20 year olds, sizable loans are accrued via major purchases.
These items can amount to tens of thousands, or even hundreds of thousands, very quickly and a premature death could leave these expenses to burden someone else. A lender is going to want their money back or they will repossess whatever they can in order to get the value back.
A mortgage could be one of the largest debts you take on in your life, and you may do it multiple times. A home loan can be a pretty extraordinary amount of money, and if you are not around to keep making payments, the lender is fully capable of foreclosing the home and your spouse will be left to find a new residence.
There are different ways to protect your mortgage with life insurance, but getting a private life insurance policy is going to be your best bet. Don’t buy mortgage insurance from a bank, as it’s going to cost way more per thousand, and it’s only money to pay the bank with. Your family doesn’t receive it.
Loans and Credit Cards
Loans for cars, or credit card balances are also big ticket items you may accrue with your spouse. $20,000 for a car or a few thousand in credit card debt can become a huge headache if left behind, especially if your spouse co-signed and is fully responsible for payback of the loan.
Do be aware, though, not all debts transfer to those you leave behind. Some kinds of debt do die with you, but look at each obligation individually to make sure you get ample coverage for each item.
Life Insurance For College
If you have kids, you may want to think about leaving money for college.
If you’re like me, you were happy to walk away from a university with a degree, but not so happy when those first student loan payments came due a few months later. It’s even worse to see the combined total of all the loans. It’s a constant stress until they’re paid off.
So maybe you don’t want your kids to have to worry about it, and you’ll consider a little larger of a life insurance policy in order to give the college opportunity to your child if you’re not here to assist them through. But even if they don’t end up going to college, it’s a great head start for them to buy their first home down the road.
Life Insurance For Charity and Legacy
Finally, think about what else you may want to simply leave some extra cash for. Perhaps you are involved in community services, volunteering, ministry, or simply would want to help a cause.
Life insurance for legacy or charity is usually not quite as important for those in their 20’s as someone who is older, but perhaps it’s something haven’t thought about before now and you’d love to make a lasting impression on something you love to support.
No matter if you need $100,000 or a million dollar insurance policy, we can answer your questions and help you get the coverage you deserve.