Do Single People in Their 20s and 30s Need Life Insurance?

Life insurance is not a topic many people like to discuss, but it is not even a consideration for one-third of adults. That is how many don’t currently have any life insurance. Granted, many of these adults are young and single – just out of college or just starting out in their careers – so it is difficult for them to conceive of any reason why they should own life insurance. However, given the opportunity to more closely explore the question of “Why do I need life insurance anyway?” many of these “invincible” adults might reconsider.

Why People Buy Life Insurance

For the two-thirds of adults that do own life insurance, their reasons are clear. Having a financial security blanket to protect their family from financial hardship is the primary reason for owning life insurance. While that checks off the more practical reasoning, most people buy life insurance out of their devotion and sense of responsibility to the ones they love – more of an emotional purchase that brings peace-of-mind to the family.

For the millions of adults who do not own life insurance, they may have their reasons why they don’t. It cannot be about the cost because life insurance has never been more affordable. For a healthy 25-year old, a $500,000 term policy can be purchased for less than a twice-weekly Frappuccino habit at Starbucks. While young adults may not have an emotional need, nor an immediate financial need for life insurance, there are plenty of reasons why they should consider it.

You’re Not Getting any Younger

The cost of life insurance is based mainly on your age. With each passing birthday, the cost goes up. Young adults have the opportunity to lock in a low premium for their entire adult lives. Chances are, you’re going to buy life insurance at some point – when you marry or when you start a family – so why not save yourself hundreds of dollars a year by buying it when it is most affordable?

Good Health is Fleeting for Some People

Studies show that nearly 70 percent of young adults will develop some sort of health condition, making it difficult for them to qualify for life insurance in the future. Typical age- or family-related disorders include high blood pressure, high cholesterol, diabetes, and many other common diseases. When that happens, the cost of life insurance can become prohibitive if they can qualify for it at all. The time to buy life insurance is when you are at your healthiest because it will never be cheaper.

Group Insurance is not Real-Life Insurance

Many young adults opt to join their employer’s group life insurance plan thinking they have covered their obligations. However, nearly 60 percent of young adults will change jobs within the next twelve months, and their life insurance coverage will not be going with them. There is a chance their next employer won’t offer group coverage. For those who continue with group coverage, at some point, it will not be enough to cover their actual life insurance need because the coverage is limited.

When you are young, buying life insurance is as much about protecting your insurability as it is anything else.