Understanding Life Insurance In Your 20s
You will be thanking yourself later in life if you start understanding life insurance in your 20s. At this time in your life, you are transitioning into adulthood through new experiences such as graduating from college or entering a new stage in your career. You may constantly be thinking about your budget and how you maybe rent or other bills. How often do you think about life insurance?
Life insurance is the number one backup if anything happens by mistake. Mistakes don’t just happen when you are older. Everyone needs life insurance, and it’s less expensive to invest in when you are under 30 than at an older age.
So why should you get life insurance in your 20s? There are several important reasons for starting to think about purchasing life insurance right now.
- Major life events. You are in an exciting time right now in your 20s. There are a lot of changes. In addition to celebrating those changes, major life events are a key reason to buy life insurance.
- Marriage. You are now facing life head-on with a partner and a marriage. There are new responsibilities because you have someone that depends on you. Marriage is a shift from being single. However, if you pass away, your spouse will inherit all of your debt. Protect your spouse by having a solid life insurance policy to cover your expenses.
- You are starting a family. Babies are expensive but still a complete joy! But don’t forget— your baby is entirely dependent on your income. So, if something unfortunate were to happen, your child would need money to replace the lost income. A life insurance representative can help you analyze your budget based on your unique situation and calculate the right amount of coverage to fit your needs.
- You are purchasing your dream home. You finalized the process, and the house is officially yours. However, now you have the responsibility of a mortgage for potentially the next thirty years. Having a life insurance policy that will cover at least the remaining amount of your mortgage will protect your spouse or the co-signer from dealing with the burden if you unexpectedly pass away.
What if you aren’t planning on getting married, having kids, or purchasing a dream home? Your current situation may not necessitate life insurance, but you never know when you may need life insurance. Where will you be in 5 to 10 years? Life insurance rates become more expensive as you age, so don’t wait until you settle down to see the appeal of life insurance.