Feb
27
2007
I’m in my early 20′s, can I qualify for life insurance?
Author: Byron UdellAnyone can get life insurance, even a child, as loong as you provide proof of insurability. For kids under 18 years of age, you do not need to show proof of insurability, which means no medical exam is required.
For most people in their 20′s they don’t need life insurance. Remember the main purpose of life insurance is to protect your family financially if something were to happen to you. So, if you don’t have someone that depends on you (an elderly parent, child, spouse, etc.) then you may not need to purchase life insurance in your 20′s.
The upside of purchasing it in your 20′s is the fact that your young and probably healthy so life insurance will be cheaper for you. You can lock in a low rate for 30 years if you choose to buy a term policy.
March 5th, 2007 at 8:46 pm
While I agree that most young people may not \”need\” insurance coverage immediately, I think it is a prudent move to buy insurance young and either buy a 30 year term or better yet, with the low price, a 30 year return of premium term.
This may take some coaching from parents, but there are plenty of parents out there that wish they had bought young, not just because the premium was lower, but because their health and their needs have changed. Sometimes both of those things have changed dramatically. Remember, locking in your good health also locks in conversions at the best rates.
Thinking ahead isn\’t what young people are best at, but parents, especially those with health problems, can help clarify the need.
March 6th, 2007 at 8:46 am
Ed,
You are so right. The problem we see in the business is, even though life insurance is very expensive, often times people in their 20\’s still don\’t have enough money to purchase it. They\’re concern is to pay off college loans, etc. And, thinking back to when I was 20, I wasn\’t concerned about my future health.
April 25th, 2007 at 11:02 pm
Rare is the 20-year-old who is thinking about life insurance (or much of anything about the future, for that matter), as you have pointed out. However, the difference between a 20-y.o. and a 28-y.o. can be very distinct! Many people in their late 20′s are starting families and careers, and are in the perfect time to start thinking about life insurance and other grown-up concerns. The 20s are a decade of much change for many people, which can lead to considerations (like insurance) along the way.