Often the last thing on your mind as a young adult is purchasing life insurance. Whether you’re focused on paying off student loans or setting up your 401(k), you may not see a reason to add another expense. However, purchasing a life insurance policy as a young adult is one of the best times to do it. Life insurance rates increase as you age, so purchasing a life insurance policy while you’re young can help lock in lower rates and save you money in the long run.
Is term life insurance right for young adults?
Term life insurance is often a good life insurance option for young adults because it’s both affordable and flexible. When you purchase a term life insurance policy, you only buy it for as long as you need it (most commonly a 10-, 15-, 20-, 25- or 30-year term), making it a good option to purchase while you are young and healthy. Once you purchase the policy, your monthly premium stays the same, making this type of coverage an affordable option if you’re just starting out.You can even opt for no medical exam life insurance coverage, a type of term policy also known as instant life insurance coverage. With this type of policy, which is a great fit for those 60 years or younger and in good health, you skip the medical exam and typically can begin coverage within an hour of applying.
Why Young Adults Need Life Insurance
Life insurance is a way to safeguard your loved ones’ future. If you have dependents, student loans or other forms of debt, or if you plan on having children, purchasing life insurance is a smart choice. When you purchase life insurance while you’re young, you have the benefit of being able to increase your coverage as your needs evolve without having to go through the life insurance application process and medical exam again.
Life Insurance Is More Affordable Than You May Think
Term life insurance is arguably one of the most affordable life insurance options, especially in comparison to permanent life insurance or whole life insurance. And with term life insurance being a strong option for young adults, you can start now by purchasing coverage to lock in your rates, and then adjust your coverage as your needs change. Purchasing life insurance while you’re young is an easy way to make your life insurance coverage more affordable.
How much life insurance do young adults need?
Once you’ve made the decision to purchase life insurance, you then have to decide how much coverage you need. Generally, financial planners recommend purchasing coverage equal to 10-15 times your annual income. If you’re just starting out in your career, you may want to account for salary increases so you can get more coverage at a lower rate while you can. Using a life insurance calculator can be helpful in determining how much coverage you should purchase.
SelectQuote Can Help Young Adults Quickly Find Life Insurance
No matter your age, planning for your future and protecting your loved ones is always a good decision. At SelectQuote, our experienced licensed insurance agents search highly-rated carriers in just minutes, offering unbiased price and policy comparisons. Our quick and efficient process saves you time, so you can get the coverage you need with less hassle.
