Life Insurance in Your 20’s

life_ins.jpgIf you are in your early-to-mid 20’s, life insurance is probably the furthest thing from your mind right now. If someone were to suggest it, you’d probably think, “Why in the world would I want to own life insurance? I’m so young, I just finished college, and I’ll buy it later when I earn more money. In reality the truth may surprise you that now actually is the best time to purchase and own life insurance.

When you are a young single adult or couple just starting out, whether you realize it or not you are starting to build your own personal portfolio.  At first you might think “yeah right” but think about it;  If you own a car you probably have insurance on it.  If you rent or own the place you live you either have renter’s or homeowner’s insurance on your residence.  With those two insurances in force you have put in place two of the three major pieces to start building what is called “the foundation of your financial portfolio.”  In order to build a solid portfolio you must also protect yourself and that is why you need the third piece: life insurance.

Think about it this way, if you get into a car accident you have insurance or when the big storm comes through and damages your house again you have insurance.  Now what happens to your loved ones if something happens to you?  The car and the house are insured but the most important piece of your “financial portfolio” is you.  Are the car and house more important than you?  Absolutely not, but in reality most of us, especially when we are young, think we will always be healthy and live forever. This leads to procrastination and ignoring the fact we should purchase life insurance.

If something happens to you and others are dependent on your income life insurance is like a “money machine” that has the ability to keep your family going without them having to make any major changes.  The life insurance you could own is income replacement for your loved ones, be it a significant other, spouse or children, can be used to pay off your debts, student loans, mortgages, raise a child, pay for children’s education, and more.

So now you understand how it can benefit you, the question comes up of “Why now?” The answer is very simple: because life insurance premiums are primarily based off of your age and current health buying in your 20s means you’ll get the best, least expensive deal as possible. If you wait until you are older, you could risk developing a health condition or putting on a few extra pounds, which will increase your premiums.  By purchasing life insurance now you are making a smart financial decision, while planning for the future and creating that solid foundation to start building your financial portfolio.

This article was provided by Matt Kern, a Sons of Norway Financial Benefits Counselor. If you’d like to learn more about the benefits of purchasing life insurance at a young age, contact Matt at

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