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?…(continue to part 2)