Life Insurance And Young People – Is It Worth It?

Many people associate life insurance with getting old and taking care of financial dependents in the event of the policyholder’s passing, but there is a distinct advantage of taking out life insurance at an early age, as we will explore in more detail below. Some of the key benefits of purchasing a life insurance policy when relatively young are as follows: 

• Lower Premiums – As you may expect, insurers will charge lower rates for someone fit and healthy with no pre-existing conditions. The only exception to this rule may be if the person has a high-risk occupation, including:
• Mine work
• Pilots
• Offshore worker 
• Emergency services

When you apply for a life insurance quote, ensure every pertinent detail regarding your current occupation is included; this will allow the insurer to not only offer the correct level of cover but also ensure the policy pays any beneficiaries without undue delay.

• Consistent locked-in rates – Term life insurance policies typically offer a fixed rate which is valid for the duration of the policy. This offers significant savings for those who are at the start of their working lives and safeguards the future of their (future?) family without the higher premiums experienced by people who take out a life insurance policy at a later age. 
• Guaranteed Coverage – As younger people are less likely to have pre-existing medical conditions, insurers will almost certainly not refuse to issue a life insurance policy. 

Do I really need a Life Insurance Policy as a Young Single Person? 

This is essentially a very subjective question which will depend on personal choice. As mentioned, the premiums for term life insurance are much lower for young, healthy people and with a fixed term of 10,20, or 30 years, a lot of things can change as life moves forward. If you are 20 years old and you purchase a 30-year term policy, you will be 50 before the term ends and could quite likely have a family whose future might solely depend on you being able to work and keep them in a lifestyle they have become accustomed to. 

Can I afford it?

Depending on the type of employment you have and how much you earn, a life insurance policy, taken out at a young age, will not break the bank. Treat the monthly or annual outgoing as an investment in your future family or other financial dependents. There will, of course, be some policy details that warrant your full attention, but a reputable insurer or broker should be able to outline any caveats in easy-to-understand terms prior to policy purchase. 

How to Find a Suitable Life Insurance Policy 

Finding a policy and provider is now easier than it ever has been. With the unstoppable rise of the Internet and AI technology, several providers can be at your fingertips in a matter of seconds. Typing something like ‘life insurance for a 25-year-old ‘ into a search engine or AI platform will give you a list of providers and also any other information you need to make an informed decision.