February 20, 2014 by Troy Baccus

Should someone in their twenties buy life insurance?



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Should someone in their 20s purchase life insurance?

Buying life insurance isn’t exactly exciting.  Sure, you’ll feel responsible knowing your family will be taken care of financially if you’re gone, but buying a new car or some jewelry is a lot more thrilling.  As a result, it’s easy to put off buying life insurance. This blog post will explore at what point in your life you should purchase life insurance (and maybe hold off on the car or necklace).

What is your life situation?

Do you have kids?  Are you married?  Do you have a home mortgage?  If not, you can probably wait before buying life insurance (although as we’ll note in a minute, you might be better off not waiting).  If you do have kids, a spouse, or a home mortgage, and you haven’t saved enough money to support your children, spouse, and pay off your mortgage if you unexpectedly pass away, then now is the time to purchase life insurance.  

For the majority of us, these big life events occur in our twenties.  And most people in their twenties are only beginning to earn money, much less save money.  In short, it’s time to buy life insurance when: (1) people are dependent on you financially and (2) before you’ve saved enough money to provide for your dependents for as long as they’ll be dependent on you.

When is life insurance most affordable?

The good news is that life insurance is usually cheapest when you’re young.  That’s why even if you don’t have any dependents currently, but you know you eventually will, it’s not a bad idea to lock in low life insurance rates while you’re still in your twenties and healthy.  You can always change the name of your beneficiaries when you get married or have children. 

How much life insurance do you need?

Once you’ve determined you need to buy life insurance, the next question is “how much?”  Our Life Insurance Needs Calculator is a handy tool that can assist you in determining how much life insurance is sufficient for your specific situation.  And of course, the agents at Montana Life Group are always an email or phone call away. For further reading on the importance of life insurance at different stages of your life, check out Matt Krantz’s life insurance article in USA TODAY.  

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