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Why young people should buy life insurance now

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By
Matt Richardson
Sr. Managing Editor, Managing Your Money
Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.
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Matt Richardson

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While life insurance is beneficial for policyholders of all ages, there are some particular benefits younger adults should take advantage of. Nicolas Hansen/Getty Images

Life insurance can provide significant financial security for your beneficiaries in the event of your death. In exchange for a reasonable fee each month (cheaper if paid annually), you can rest assured knowing that your loved ones will receive a lump sum of money in your absence.

The benefits of life insurance are significant and multiple and most financial advisers recommend that adults have some level of coverage, regardless of the policy type. 

Yet many younger American adults don't have the right amount of life insurance. According to , "nearly half (47%) of millennials (34 million adults) say they need (or need more) life insurance." 

That is a gap that can hopefully be closed with more awareness and information because, while life insurance is beneficial for policyholders of all ages, there are some particular benefits younger adults can take advantage of.

If you're in the market for life insurance then get started today with .

Why young people should buy life insurance

Here are three reasons why younger adults should buy life insurance now.

It's not expensive

This one seems obvious but many people don't take advantage early enough. The younger you are, the safer a bet you are to insurance companies. So you'll pay a lot less than you would if you were older. 

In fact, healthy young adults can often snag a term life insurance policy for under $50 a month (maybe cheaper depending on a range of eligibility factors). 

Life insurance will only grow more expensive as you age. If you want cheap life insurance then start paying now - not later. Get  now so you know exactly what it would cost.

Coverage options won't be limited

Younger people, on the whole, have fewer health issues than older adults. Because of this, they will generally pay a lower premium than older people with known health conditions like high cholesterol, blood pressure or diabetes. They'll also be more eligible for more robust coverage than an older applicant. 

If young people wait - and health issues arise with age - they will be forced to pay more for less coverage. So it behooves them to take a medical exam and prove their health status now. And if any health issues do arise in the future they'll be grandfathered in at the lower rate.

It can be used to pay off debt

If you're a millennial without any debt then you should congratulate yourself - you're in the minority. 

"Nearly three-fourths of U.S. millennials (72%) have some form of non-mortgage debt, with the average millennial owing $117,000," according to a recent study from . 

How are those debts going to be paid off should you die prematurely? You don't want to burden family or friends with bills. But if you have a robust life insurance policy in place your beneficiaries can use the payout to eliminate your debts.

Not sure how much you'd need to cover what you owe?  or use the table below to start shopping for providers.

The bottom line

Age should not be viewed as a disqualification when it comes to purchasing life insurance. There are policies available for all age ranges that will both protect you and your bank account. But if you're young and healthy you'll never have a better time to secure inexpensive and comprehensive life insurance than right now.

Edited by Jennifer Earl

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