Do I Need Life Insurance At 25? 7 reasons say Yes.
We get the question nearly daily. Sometimes weekly but that’s beside the point.
Do I need life insurance at 25? Our answer is always the same. It depends.
But what does it depend on?
What makes such a glaring difference on if you need the life insurance at 25 years old or if you don’t need it. To give you a small chunk of the answer it could be anything ranging from family or number of children, your total debt or yes, even your current health.
Buying life insurance isn’t fun, but it is easy and responsible. Nobody likes buying car insurance either, but you do because
- It’s the Law
- You Understand the Financial Loss you could incur without it.
Well, news flash people. Life Insurance is the exact same thing, but you won’t get a fine for not having life insurance.
Not yet anyways which sadly leaves America grossly under insured and many families, spouses and children are left financially ruined due to poor planning and lack of execution.
If your reading this blog, you’re already on the right path. Most people won’t even take this step, so hat’s off to you. But if you need life insurance, are you going to be the person who just reads this and feels accomplished or are you going to do something about it?
The choice is yours.
However, we always recommend that if you are trying to save time that you should stick to comparing rates and quotes with all life insurance companies.
You can do this easily below using our instant life insurance quotes rate engine to compare rates with 50 of the top rated life insurance companies.
Let’s start covering some of the reasons why you may need Life insurance at 25 years old.
Reason #1- Student Loan Debt
We all know this feeling of having that 4-year degree and pretty piece of paper we can hang on the wall and be proud of.
All to find out we are just on a mountain of debt. Here’s the kicker. It doesn’t just disappear when you meet your maker. They don’t just say “darn, guess we can’t collect on this individual.”
It will pass down and impact someone else if it’s not covered. Most people at 25 years old aren’t making enough money yet to pay these debts down at this age, so the only viable option is life insurance.
In 2016, the average college graduate had roughly 40,000 in student loan debt according to Forbes. So many 25-year-old individuals overlook this and opt to have no protection to eliminate these debts.
This is a big mistake. A 10 Year term policy is going to cost you pennies on the dollar even at coverage amounts up to 250K. Most could afford to pay these premiums by giving up 3-4 Starbucks coffees per month.
Moral of the story, if you have student loan debt, you need life insurance.
Reason #2- You have dependents. Wife or Kids. Each Justify Life Insurance in a big way.
This should seem obvious, but sadly it’s not. America is way under insured , and the number of families that choose to go with no coverage is mind-blowing. If you have a child or a spouse, they are most likely dependent on your income or at least need money to pay off existing debts. If you are in this boat, don’t ignore life insurance coverage.
Reason #3- Home Mortgage
This goes back to the student loan scenario. If something god forbid does happen to you and owe any money on a home mortgage, it doesn’t magically disappear. Someone is going to pay for the mistake of you not having life insurance one way or another.
The premiums at 25 years old are so cheap that no excuse really exist to not opt in for coverage. Seriously no excuse not have coverage if you have a house.
Think about it for about 5 seconds. You go to work everyday from 9-5. You pay your bill each month on this new home and most Americans have nearly nothing left over this after doing so. Now, next time on the way home, you don’t make it home.
So, all the sweat, tears, promotions, demotions, were all to ultimately end in a foreclosure or bankruptcy for someone else? Doesn’t add up does it.
Not when 9 dollars a month probably would have fully paid off that house for your wife and kids to continue living in if something god forbid did happen.
Yet we here it all the time, it’s too expensive, or I don’t have room in my budget.
No room in the budget?
I’m currently sitting at my office desk writing this blog. On my office desk, I see 1 coffee from a Casey’s General Store that ran me about $1.19 with tax. I also see a monster energy drink in my trash can (yes sometimes the hours get long, don’t judge).
That monster energy drink was
- Not healthy
- About 2.77 after tax
I’m sure your thinking, what’s your point Josh?
My point is this. I don’t buy Monster’s or coffee every single day. If you must know I typically brew my own in my office. 6 spoons of grinds. Yes, I like it strong.
However, probably once or twice a week I do make these stops for coffees or other bad habits. These would easily add up to a life insurance policy for a 25-year-old.
So, you’re probably thinking I’m a bad example of someone who should be writing this blog. Not at all, I already have life insurance, so the coffee here and here comes free of judgement.
Can you honestly stop reading this and think for 5 seconds and look around and claim you can’t see or find the savings to protect your family?
Don’t leave loved ones or another family responsible for paying for something that was for your benefit.
Reason #4- Burial and Final Expenses
The average cost of a funeral is rising and doesn’t seem to be slowing. They aren’t free no matter how low of an income or bank account balance you have. Someone must pay for the final expense arrangements.
You could look at coverage amounts between 8-25,000 if you fall into this category to at least cover your final expenses. Someone will thank you for doing so.
Reason #5- Credit Card Debt
I know this feeling just as well as anyone reading this blog. We were young and wanted to have fun. At 18 we were all capable of opening lines of credit and beginning our bad habit of spending.
BestBuy personally took me thousands of dollars at this age. Technology was booming, and tv’s iPods and other fun gadgets was the way to live. If you wanted any friends at least.
Most 25-year-old individuals are still sitting on a mound of this debt. Life insurance is a perfect way to help eliminate that debt if something was to happen to you. Again, they don’t reduce the debt for you for free or just chalk it up to darn, guess we lost another 4K tv this week.
They bill the next in line or your estate for the debt which someone does still ultimately pay.
Reason #6- It’s cheap. Cheaper than it will ever be.
Life insurance is never going to be cheaper than it is today for you at 25 years old. You can obtain a 250,000-term policy for less than 15 bucks a month in most circumstances. For the amount of good 250,000.00 would do for family and loved ones, why would we choose not to?
Well because life insurance isn’t very sexy. It wasn’t sexy in 1970 and it’s not sexy now. We don’t go to the neighborhood barbeque and brag about the ten-year term policy we just took out. We go and brag about our recent vacation to Ireland.
No one wants life insurance because you must die to obtain the benefit. This is self-serving and selfish approach.
This just comes down to you simply caring enough to protect them so that the monthly withdrawal each month doesn’t make you upset that you have a few fewer bucks to waste on a few drinks at your local tavern.
Reason #7- Your life is just beginning
At 25, you don’t know where life is going to take you. You don’t know how many kids you may have, who you may marry or what your final career path will be. Your earnings could be easy to predict or difficult depending on the job field your entering.
Life insurance is an essential financial planning tool that’s often overlooked. It can protect assets, debts and family members all in one lovely bound 60-page book of paper. It’s not hard to begin, so start your financial planning off on the right foot. Purchase life insurance.
Why do most 25-year-old individuals ignore Life Insurance?
We believe it’s strictly because they are not informed of the impact it can have to help someone, or they don’t want to reconfigure a budget at this young age.
No one is forcing us to buy life insurance either. Why do you think car insurance is not optional but mandatory?
It’s because in all 50 states, insurance commissioners and Governors sat down and realized one thing, Wow, bad things do in fact happen and it gets very costly.
If we don’t force people to have it, they won’t which can do damage that can be reversed or fixed to families, properties and businesses.
Being informed and taking proper steps to ensure financial security is only step 1 in the process but you shouldn’t be moving on to step 2 until step 1 is completed correctly.
How do I begin Looking at Life Insurance Options? What’s the best path?
The first key is to always work with an independent life insurance agent. This goes for if your 25 years old or even 40 years old.
We can provide you with options for more than 60 life insurance companies and ensure you get the best possible rates. We know that at this age, every penny counts so we will work in your corner to protect those pennies the best possible we can.
Pro Tip and Bonus Reason on why you need life insurance at 25 years old.
Pre-existing Medical Conditions and the Impact of Age with Price for the Future
Okay, hang with us here for a moment. We aren’t talking about if you already have pre-existing medical conditions. That’s a different story.
We are talking about the chance you will find a pre-existing condition in the future.
If you believe this can’t be you it absolutely can and likely will. In my family, it runs deep.
- Mom- Breast Cancer at 44- Stage 3- Luckily Beat it and is Remission
- Grandmother- Passed from breast Cancer at 63 years old
- Sister- Diagnosed with Stage Ovarian Cancer at 34 years old
- Aunt- Passed away at 52 from breast cancer
- They come and can sneak up at any time.
Many don’t understand that waiting for it the secret killer with life insurance. Get life insurance when you are young and healthy. It’s never going to be cheaper and even waiting 1 or 2 years could put you into a boat of never having the opportunity to purchase life insurance again.
It’s that simple.
If you decide to wait until you are 30 years old to purchase but on your annual physical at the age of 29 you are diagnosed with literally anything out of the ordinary, your prices just jumped dramatically, or you will become uninsurable.
We see it every day…
Once you are locked in, you have nothing to worry about. If you purchase the life insurance at 25 years old and then develop lung cancer, you are still covered, and there is nothing the insurance company can do it about it except pay your family and loved ones the death claim.
Easy as 1,2,3.
Who do we recommend for Life Insurance Coverage at 25 years old?
As stated, before we recommend you work with a broker or independent agent that has many companies to choose from and understands your unique situation.
Overall the top companies for your coverage at this age will be (in no order)
- Protective Life Insurance
- Prudential Life Insurance
Phoenix Life Insurance if you are searching for life insurance with no medical exam at 25 years old.
What’s Next for all the 25 year old readers out there?
Well depending on how this blog post spoke to you, the next step would be merely starting the life insurance coverage and life insurance application.
At Good Life Protection, we are always here to help you find the coverage that fits your unique needs and budget or at least inform you and help with any questions you may have.
However, that’s not why we write these blogs. I write these blogs to inform you because I believe Life insurance is very powerful and I can make an impact on peoples live.
Start by calling one of us or any independent life insurance agent/ agency to get the ball rolling or filling out the quote form on the page to at least see what it may cost you for coverage at 25 years old.
Trust me, it won’t be much.
So, do you need Life Insurance at 25 years old? Do you feel you now know the answer?
Listen, everyone has different circumstances and situations that impact the overall scope of if you need life insurance or not.
Our point wasn’t to drill down the fact that you do need the life insurance at 25 or to even convince you to purchase life insurance today.
The point was to paint the picture that an overwhelmingly large amount for you at 25-year-old do need the life insurance coverage and just purely choose not to get it for no apparently good reason.
Did we leave anything out? Do you have any experience looking for life insurance at 25 years old?
Do you know anyone who waited to do so and ultimately paid the price in the end? We sure do, and we would love to help and hear from you. Drop a comment below.
May the best price win.
FILED UNDER – LIFE INSURANCE RATES