Aflac: 4 Reasons to Get Life Insurance in Your 20s

NEW YORK, March 10, 2023 (Newswire.com) - Aflac: When you're young, you may think that it's too soon to start thinking about insuring your life. However, this is actually the best time because you'll most likely qualify for many life insurance products and a great rate. Here's why it may make sense to get life insurance while you're in your 20s: 

1. Life insurance protects your family 

Whether just married or starting to have children, you're going to want to make sure that your loved ones will have plenty of financial security for years to come. That's what the death benefit from a life insurance policy is for - to serve as income replacement if you're no longer living and able to provide for them.  

You should consider getting coverage that's worth multiple years of your annual earnings. In the event of a tragedy, this would essentially be the same thing as if you were to continue working and providing for your family for years to come. 

2. Life insurance pays your final expenses 

Even if you're single and don't have any dependents, passing away would trigger a major financial burden for your parents or siblings. The costs of a funeral, end-of-life medical bills, and other expenses can add up quickly. For that reason alone, even just having a small life insurance policy would be helpful in covering these costs. 

3. You might qualify for the best premiums 

One of the great advantages that people in their 20s have over older applicants is youth. Younger people have a statistically lower probability of passing away prematurely. This is because they're generally in better physical health and haven't developed any major medical conditions yet. 

So, life insurance companies will often offer younger applicants the best possible premiums. You can take advantage of this strategically by applying as early as possible and locking into a 30-year term policy or qualifying for a permanent life insurance policy that will last the rest of your lifetime. 

4. You may want to borrow against your cash value later 

In addition to having a death benefit, permanent life insurance policies like whole life and variable universal life also have what's called a cash value component. With cash-value life insurance, policyholders have the ability to borrow against it in the future without triggering any taxes. This money can be used to buy other income-producing assets such as investment property, stocks, or even starting a business. 

The bottom line 

Getting a life insurance policy when you're young and in your 20s is the optimal time. You'll be in peak health, qualify for most life insurance products, and likely be offered the best rates. This can help to provide coverage for your family, pay for final expenses, or even allow you to eventually take a tax-free loan against the policy's cash value. 

Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.  

Aflac insurance coverage is underwritten by Aflac. In New York, coverage underwritten by Aflac New York.  

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Source: Aflac