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 401K, 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.
Term Life Insurance: Best Life Insurance for Young Adults
Term life insurance is often the right life insurance for young people as it is the most affordable and flexible. When you purchase a term life insurance policy, you only buy it for as long as you need it and your rates won’t change, making it beneficial to purchase while you are young and healthy.
Why Young Adults May Need Life Insurance Right Now
If you have anyone who is dependent on your income, have private student loans or other debt, or plan on having children, you should consider getting life insurance as soon as possible. Another benefit of purchasing life insurance while you’re young is that you may be able to increase your coverage as your needs change, without having to go through the life insurance application process and medical exam again.
Life Insurance is More Affordable Than Young Adults 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?
Most financial planners recommend coverage that’s 5-10 times your annual income. As a young adult, you may want to account for salary increases so you can secure more coverage at a lower rate while you can. Our life insurance calculator can help you get started in determining how much coverage you might need.
SelectQuote Can Help Young Adults Find Life Insurance
No matter your age, there are plenty of reasons life insurance is a good investment. At SelectQuote, we work with some of the most trusted life insurance providers and can offer unbiased guidance while comparing prices and policies for you. Let us help you find the right life insurance coverage for your needs.