Life Insurance In Your Early Twenties…The Pros and Cons

Life Insurance In Your Early Twenties…The Pros and Cons

If you are researching if it makes sense for you to obtain life insurance in your early twenties, you have landed in a good place. The purpose of this article is to help you think through the pros and cons of life insurance in your twenties.

I'm Young and Healthy, Why Do I Need Life Insurance?

The truth is, you may not need life insurance in your twenties. 

Life insurance needs analysis is traditionally based on present obligations. This means protecting income for family expenses (ie. living expenses, mortgage, college...) , covering debts, and any business requirements such as buy/sell agreements with partners. 

If you do not fit in any of these categories, you may not truly "need" life insurance in your twenties. However, it still may make sense depending on  your  future plans.

Why Obtain Life Insurance In Your Early Twenties If You Don't Need It?

Good question.

The answer ​lies in the combination of your future plans, health and cost.

If your future plans include marriage and children, a mortgage, and college expenses, then  ​locking in cheap term life insurance may be of interest. After all, the good health of your twenties may not last until you decide you "need" life insurance.

Assuming you are not involved in dangerous lifestyle activities like scuba diving , there is a good chance you are in excellent health. If that is the case, 20 or even 30, year term insurance is incredibly inexpensive in your twenties.  ​

If your immediate reaction is to think "you sell insurance, of course you say this", I don't blame you. Being a skeptic  can be healthy when dealing with financial matters.

One easy way way to test the theory that locking in cheap term insurance may make sense is to run a quote on yourself and decide if it comfortably fits your budget. Then ask folks 20 years older than you if they wish they had life insurance on those same terms. You can safely bet they do. 

What is The Cost Of Life Insurance In Your Early Twenties?​

Life insurance generally is sold in four "regular" health ratings  and substandard or  table rated categories. For the purposes of this article, we will concentrate on the most common or 'regular" health ratings.

Life insurance heath ratings are determined by a para-medical exam that checks weightblood pressure, cholesterol, and several other blood and urine detected health markers. Note that there are no exam options for people who do not want to take an exam. 

​The tables below represent the best available pricing  currently (9/27/2017).

20 Year Term ​Life Insurance for a 21 Year Old

  • Male Ns
  • Female NS
  • Male Smoker
  • Female Smoker

Benefit

Preferred Smoker

Standard Smoker

$50000

$15.27/mo.

$16.02/mo.

100000

15.75

20.79

250000

30.23

42.85

500000

54.38

79.61

1000000

102.66

153.12

20 Year Term ​Life Insurance for a 22 Year Old

  • Male NS
  • Female NS
  • FEmale Smoker
  • male Smoker

Benefit

Preferred +

Preferred

Standard +

Standard

$50000

$9.44/mo.

$9.44/mo.

$11.39/mo.

$11.39/mo.

100000

9.10

10.18

11.55

12.35

250000

12.47

15.93

18.59

21.22

500000

19.69

26.25

31.41

37.41

1000000

34.13

45.50

56.00

65.63

20 Year term Life Insurance for a 23 Year old

  • Male NS
  • Female NS
  • Male Smoker
  • Female Smoker

Benefit

Preferred +

Preferred

Standard +

Standard

$50000

$9.44/mo.

$9.44/mo.

$11.39/mo.

$11.39/mo.

100000

9.10

10.18

11.55

12.35

250000

12.47

15.93

18.59

21.44

500000

19.69

26.25

31.41

37.93

1000000

34.13

46.38

56.00

65.63

20 Year term Life Insurance for a 24 Year old

  • Male NS
  • Female NS
  • Male smoker
  • Female smoker

Benefit

Preferred Smoker

Standard Smoker

$50000

$11.35/mo.

$13.64/mo.

100000

11.83

14.62

250000

20.45

27.41

500000

34.80

48.72

1000000

63.51

91.35

Thank you for choosing the Life insurance Help Desk to research life insurance in your early twenties. Remember to use the custom quote form if you have any concerns about your health and please don't hesitate to call or send an email if you have any questions.

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James Tobin, CFP
 

Jim Tobin is the owner of Life Insurance Help Desk, a Fairfield County, CT. life insurance agency. You can find him on Google + and Facebook. Over the past 10 years, Jim has used his CFP-financial planning designation to help individuals with their life insurance needs. In addition to working with life insurance clients, Jim teaches ESL classes in his spare time. He resides with his beautiful wife Nicole and the 3 cats that rule their lives..