Life Insurance for 18-30 Years: Important Considerations

If you’re between the ages of 18 and 30 years old, now is the perfect time to buy life insurance.

Why? Because  life insurance is incredibly cheap and affordable for anyone in this age group.

Life insurance is an investment for your future, and even though you don’t think you need any right now, you’ll be sorry if you wait too late in life to buy it.

How  Expensive is Life Insurance?

I did some research on term insurance. I looked at what it would cost per month to buy a $100,000 term life policy and compared the rates which you would pay for a 10 year term, a 20 year term, and a 30 year term policy. These rates are for someone who is a non-smoker and in good health

$100,000 Term Life Insurance Quotes for Ages 18 – 30

Age                               10 Year Term        20 Year Term          30 Year Term

18 Year Old Man                   $7.26                 $9.43                        $12.51
20 Year Old Man                   $7.27                 $9.43                        $12.51
22 Year Old Man                   $7.27                 $9.43                        $12.51
24 Year Old Man                   $7.27                 $9.43                        $12.51
26 Year Old Man                   $7.27                 $9.43                        $12.60
28 Year Old Man                   $7.27                 $9.43                        $12.78
30 year Old Man                   $7.27                 $9.43                        $12.86

(Disclaimer – These rates are effective as of January 15, 2013)

As you can see from the above quotes that when you’re young, life insurance is very affordable whether you buy a 10 year term or a 30 year term life insurance policy.

Why do I Need Life Insurance if I’m Between 18 – 30 Years of Age?

There are plenty of good reasons to buy life insurance at a young age. First and foremost is the simple basic fact that life is uncertain. Accidents happen, and anyone at any age can be stricken with a life threatening illness.

Many people in your age group are just finishing your education and are just starting your careers.   This also the time in a young person’s life when you begin to settle down, marry, have children and invest in buying a home.

You also begin to rack up debt through personal loans such as to buy a car and other big ticket items. You also begin to use credit cards.

So, the question you have to ask yourself is this – What would happen if I were to suddenly die in an accident or get a fatal illness? Who’s going to pay for the funeral and death expenses, medical bills, credit cards, the mortgage and my loans?

Answer: It’s going to be the people you leave behind.

Life insurance is about making sure that your loved aren’t saddled with these expenses. It’s about peace of mind and being responsible for the ones who have to pick up the pieces and move on.

What Kind of Life Insurance Policies are Available for Ages 18 – 30?

Life insurance comes in 2 types which include term life insurance and permanent insurance.

Term insurance is for life but you buy it in periods of time known as a term such as 10 years, 20 year or 30 years for example. You can also buy policies which to a specific age such as 55 or 65.

It is the cheapest form of life insurance  that you can buy. It pays out death benefits only, but these benefits are paid out as a lump sum and go directly to your named beneficiary.

Although you might think about buying a shorter term such as a 10 year term, you should know that life insurance becomes progressively expensive as you get older.

When you’re young, the best approach is to buy a longer term such as 20, or even a 30 year term because the premiums will remain constant for the life of the term. If you go to re-new after 10 years, you will find it a lot more expensive to buy. If you buy a longer term now, you will end up saving money.

Permanent insurance comes in 3 types of policies which I will only discuss very briefly. The types of policies include whole life, universal life and variable life. Permanent insurance is much more expensive to buy than term insurance.

Why? Because not only does a permanent policy provide your loved ones with death benefits but these types of policies also come with a cash value accumulation feature which build up over the life span of the policy.

Permanent policies have certain advantages such as providing you with a savings for your retirement. The proceeds of both the death benefits and the cash value accumulation are also tax deferred for your beneficiaries.

How Much Life Insurance Should I Buy?

The majority of experts say that the ideal minimum amount of life insurance you should buy should be equivalent to 10 times your annual salary.

Have Questions About Life Insurance?

You always want to talk to an independent agent like myself.  We can access and research dozens of companies so you are assured we will find the best policy at the most affordable rates.  If you have health concerns, don’t let that dissuade you because we can give you valuable advice and help you to find a policy that suits you.

Whatever your needs or questions then please call us directly at 866-662-6903