Life Insurance Blog | Efinancial

Term Life Insurance in Your 20's: Why it's Important to Buy Early

Your 20's are all about the beginning of adult life - not the end - so what is the point of buying life insurance? Who thinks about term life insurance in their 20's?

The reality is that life insurance is for the majority of adults who participate in modern society. Ask yourself a few important questions and you might be surprised to find out just how important a term life insurance policy is for your future financial goals.

Keep in mind, term life insurance premiums - the amount you pay per month - are determined by a person's age, gender, lifestyle and overall physical health. The younger and healthier you are when you purchase a policy, the cheaper your premium will be. Once a premium price is set, it is guaranteed for the duration of the term. This can save you thousands of dollars over the course of a your policy's term.

Before we go into the "whys" of purchasing a life insurance policy, let's review what a term life insurance policy is.

What Is Term Life Insurance?

A term life insurance policy can be purchased for a specific span of time - hence the word - "term." You choose the length of the term but the most common policies are purchased in 10, 20, or 30-year increments. Along with the term of the policy, you also select a total coverage amount. This is the amount your beneficiary will receive in the event that you die before the term expires.

FYI: Many people experience "life insurance fantasies". They envision purchasing policies for millions of dollars, and leaving family members wealthy when they go. This is a noble endeavor, but it's important that you only insure yourself for the amount your family needs, and maybe a little extra. This will keep your premiums low, and allow you to create financial wealth via other means. Use the Efinancial Life Insurance Calculator to get an idea of what kind of benefit amount is realistic for your needs.

So now for the aforementioned "Important Questions."

Do I Really Need Term Life Insurance?

Do you have any debt?

Remember those college loans? What's the balance on your credit card(s)? Is your car paid off? Do you plan on buying a home in the next 10 or 20 years? In order to understand the importance of life insurance, you need to step out of the now, and gaze a little further into the future. Hopefully you have a long healthy life ahead of you, but should tragedy strike, your debts don't disappear. They become the financial responsibility of those you leave behind. Creditors will come after whomever they can to try to collect the money owed. A proper life insurance policy ensures that in the event of your death, your debts will be paid for. This leaves your loved ones free to pursue the life they choose, rather than one that leaves them struggling to pay your accumulated debts.

Do You Currently Own a Home or Plan To Own One In the Future?

We touched on it in the Debt section but your current or future mortgage is an important consideration when deliberating on the purchase of life insurance. Single-income homeowners are few and far between. It usually takes two incomes to make a mortgage payment, in addition to maintaining the other day-to-day living expenses. When you determine your term benefit, you will factor in an appropriate mortgage payment so that your "Home" will be preserved for family and/or loved ones. This is a major relief for those who are left behind.

Will Your Children Want To Attend College?

You may or may not have children at this stage in your life. Children in college may seem like a long way off but time flies. What about future college costs, or loan debts, you may incur? When you make the smart choice to consider term life insurance in your 20s, you want your coverage amount to adequately cover all of the financial responsibilities you anticipate over the course of the policy term.

Now Is Always the Best Time to Get Term Life Insurance

The earlier you purchase your policy, the greater your savings will be. When you are young and healthy, a 30-year term life insurance policy for an appropriate coverage amount will likely cost you less than your daily coffee tab per month. It's easy to get a quote within minutes when you use our term life insurance search engine. Go ahead and shock yourself with how affordable your loved one's financial security can be.

Efinancial's licensed life insurance agents are always ready to answer any questions you may have, or to help you customize the life insurance policy that best fits your needs.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com