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Buying Life Insurance in Your 20s

Researcher & Writer
November 26, 2019

Now is the time to lock into coverage with one of the top rated best life insurance companies. And for those of you who prefer to avoid a physical, you can get no exam life insurance for about the cost of a pizza. Call us today and let us help you find the cheapest life insurance rates by age based on your unique need.  Or you can check out our Life Insurance Quotes page and compare exam vs no medical exam life insurance options.

Affordable Life Insurance in your 20s

Buying life insurance while in your 20’s is a perfect time to lock in a great rate on either term life or whole life insurance.  At age 20, what you’re going to find is that life insurance is really inexpensive.  So inexpensive that usually the hardest thing about buying life insurance at age 20 is understanding all your options.

For this reason, clients in their 20’s should consider locking down a policy based on “price” not on the actual amount of coverage.  The reason for this is that at age 20, 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 20 you could save yourself thousands of dollars later on in life.

For example:

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 32 should also be pretty easy because as stated before, most 20 year old's are in pretty good health.  At age 20 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.
  • Diabetes
  • Etc...etc.

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 20 allows applicants to pick and choose among dozens of different options which may or may not be available to older applicants.  For example, different types of life insurance policies such as:

  • Return of Premium Insurance policies.
  • Whole Life Insurance policies.
  • 30 year Term Life Insurance policies.
  • And Universal Life Insurance policies.

These policies should be considered as viable options for most 20 year old's simply because at age 20 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 insurance 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.

Do I really need to buy life insurance at age 20?

Since we do talk to a ton of folks in there 20’s who seem interested in life insurance for a while but never seem to end up doing anything about it, we would like to stress two things before we end our article.

First, purchasing life insurance in your 20’s is probably going to be your “best” chance at qualifying for a Preferred rate which is why you should definitely do it because you’re likely to never be able to purchase your life insurance for less.

And… if you are really healthy, there is a really good chance that you may be able to qualify for a no medical exam life insurance policy, which means that not only can you qualify for a really inexpensive policy you’ll also be able to avoid getting stuck with a needle to qualify!

Still not convinced that you need to purchase a life insurance policy?

Alright, that’s fine after all, if you’re really healthy, what are your chances of developing a disease in the next 10 or 15 years that could potentially end your life?

Probably not all that high, which again is why your life insurance is priced so low.  But that doesn’t mean that you may not contract a disease that could affect your chances at being able to qualify for insurance later in life.

So much so…

That in addition to purchasing a life insurance policy, we also recommend that all folks in their 20’s take a look at what a long term disability insurance policy would cost as well.  Because you never know, you may not die, but you could become injured or develop an illness that could prevent you from being able to work, and having to rely on social security disability income isn’t much fun!

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We are a team of life insurance experts with the simple mission of helping you find the best coverage for your unique situation. We research, review, and rank life insurance companies to make that process easier.