Buying life insurance while in your 20s is a perfect time to lock in a great rate on either a term or whole life insurance policy. At age 23, what you’re going to find is that the top life insurance companies will offer really inexpensive life insurance without a physical. So inexpensive that usually the hardest thing about buying life insurance at age 23 is understanding all your options.
For this reason, clients in their 20s should consider locking down a policy based on “price” not on the actual amount of coverage. The reason for this is that at age 23, a million dollar life insurance policy may seem crazy, but when your 30 or 40 it may be what you really need. So if you lock in a million dollar life insurance policy at age 23 you could save yourself thousands of dollars later on in life.
Affordable Life Insurance for a 23 year old
Client will often say that they just need a $100,000 dollars in coverage now but fail to realize that for $5 or $10 more a month they could be looking at having $500,000 to $1,000,000 dollars in coverage.
So rather than buy what you think you need, determine how much you want to spend and then look for a policy that will give you the most benefit for that amount.
Easy to qualify for:
Qualifying for life insurance at age 23 should also be pretty easy because as stated before, most 23 year old’s are in pretty good health. At age 23 few have been clinically diagnosed with conditions that might make qualifying for life insurance more difficult or more expensive such as:
- High cholesterol.
- High blood pressure.
Now if you have been diagnosed with one of these conditions already, it’s not the end of the world, it just makes getting life insurance now all the more urgent. As you grow older, these health conditions may make life insurance very hard to get or may keep you from being able to get life insurance at all.
More options to choose from:
Buying life insurance at age 23 allows applicants to pick and choose among dozens of different options which may or may not be available to older applicants. For example, life insurance policy types such as:
- Return of Premium Insurance policies.
- 30 Term Life Insurance policies.
- Whole life insurance policies.
- And Universal Life Insurance policies.
These policies should be considered as viable options for most 23 year old’s simply because at age 23 they could be really affordable and provide some significant benefits that traditional term policies simply don’t have.
However, you need to do a thorough needs analysis to make sure your family is properly insured. If you have to choose between a long term or a whole life policy at the detriment of the correct face amount, you might want to choose a shorter term policy that allows you to get the necessary face amount. It is better to have a bigger face amount policy that a longer term because you may not need life insurance down the road, but you definitely need it now. If you are not sure which way to go, TermLife2Go can help.
But do I really need to buy life insurance at age 23?
Maybe or maybe not, at the end of day, that is something that you’re ultimately going to have to determine for yourself.
That said however…
What we can tell you is that for most 23 year old’s, right now is the “most affordable” time to purchase your life insurance. This is because, as you age, the price of your insurance will likely increase until you lock that price in through the purchase of a level term or whole life insurance policy.
As you age, every year, you will be increasing your chances of developing a medical condition or suffering from an accident that could potentially affect your chances at being able to qualify for coverage later on in life! This is why we generally not only recommend that folks purchase a life insurance policy as early as possible in their 20’s, we also recommend that they take a look at what it might cost to purchase a long term disability insurance policy as well.
Because you never know…
You may not die in your early 20’s, but you could become injured or develop an illness that could prevent you from being able to work in your early 20’s. And having to rely on social security disability income isn’t much fun!
We know that for a lot of individuals, especially those who are just starting their careers, may not have a ton of extra discretionary income which they can use towards purchasing a term or whole life insurance policy.
For this reason…
We’ve also chosen to write several different articles sharing some of the knowledge that we have acquired over the years working with 1000’s of clients. You see, nearly every time we complete a life insurance application for someone, one of the first questions that we need to ask is:
“what do you do for a living?” and “what would you estimate your annual income as?
Which means that over the years, we’ve become really familiar with a wide range of different career paths and opportunities some of which you would probably never think of on your own.
Our number one goal here at TermLife2Go is to help individuals and families secure their own financial security and independence, we wanted to share with you what we’ve learned. So, once you’ve had a chance to visit our Life Insurance Quotes page feel free to check out our 100 Ways to Make Money Fast and our Top 23 Apps That Will Make You Money.