I'm Young & Healthy — Do I Need Life Insurance?

If you’re like me, life insurance is probably not anywhere close to being on your radar. I'm under 30, I don't own a home, and I don't have kids. Not to mention I already have enough financial priorities on my plate what with trying to save for retirement, save for emergencies, pay off debt, and generally get my life together. The idea of paying an extra sum to insure my life is not exactly at the top of my to-do list. Besides, I’m still young and lucky enough to have my health — should I really be thinking about life insurance?

Turns out, I should. And you probably should, too.


A 2017 Princeton survey found that 65% of 18 to 29-year-olds don't have life insurance. But, even though millennials are not likely to purchase a life insurance policy, the best time to do so is actually under the age of 35. And there are a number of good reasons why purchasing life insurance early should be part of your financial plan. Read on for six reasons why.

Life Insurance Is Actually Pretty Affordable

Navigating different insurance types can be confusing. But, typically there are two main kinds of life insurance policies: whole life and term life. You want to make sure that you choose the policy that works best for your lifestyle.

With few exceptions, you don't need whole life insurance. It's very expensive, and most financial advisors will say it's not a smart option. Basically, it's a policy that lasts your entire life. The policy will pay your death benefits and also works like a savings account, accruing money that you can borrow from (but you will still have to pay interest on these loans).

Term life insurance provides coverage for a specific period of time, or 'term,' usually 10, 15, 20, or 30 years. Premiums (or annual payments) are fixed and coverage tends to be far less expensive than whole life insurance. You should get estimates to determine what kind of coverage you might need, but if you decide on term life insurance, in some cases you can get short-term coverage for as little as twelve bucks a month.