Oftentimes people wait until they are older, have more responsibilities, or have a family to start considering their need for life insurance. But why are we waiting? Now is the time!

 If I had a nickel for every time I heard someone say that they wish they purchased their life insurance in their 20s I would be filthy rich. Okay I would probably only have about $12, But I have heard it a lot!

So why does life insurance make sense now? Life insurance is going to make sense when you have financial needs that outweigh your assets if you were to pass away. And we all have those: student loans, car loans, etc.

 Here are 4 reasons why you should you consider it today

1. Younger= Cheaper

The younger you are, the better rates you can lock in as the premium will relatively remain the same for the entire duration of the policy (based on no changes being made to the policy) which will reduce the total amount spent over your lifetime. This is because the younger you are, the healthier you are.

Therefore healthy also equals cheaper. You are in the prime of your life, acquiring a policy now ensures that the cost will remain low when health conditions come up as you age. This keeps you protected no matter what life will throw at you.

For example, a non- smoking 25-year-old woman looking at a 30-year term policy with a 250k face value would be about $18/ month vs at 35 that same policy would be about $30 a month. Almost double! Getting this policy at 25 would save you over $4000 over 30 years. This could be your cost of waiting to get life insurance.

2. Protects loved ones.

 Having a plan in place would make sure your family has a secure future, it could pay off a mortgage, car loans, or funeral costs leaving your family with paid off assets and their only worry is missing you. It protects your partner from having to worry about covering these costs

Lots of us in our 20s or even 30s do not currently have any children and maybe not even a spouse but that doesn’t mean you never will. However having an insurance policy could protect your parents or a loan co-signor from the burden of your debts. As your family grows, so can your life insurance. You can add dependents (like children) to your policy, which could help cover them later in life as well.

3. Build Credit

Building credit can be quite the task when you are first starting out on your own. If you opt for a permanent policy, then you are able to build credit you can bank on. Literally! As the cash value of the policy grows, you will be able to borrow against it. Which makes building your future that much easier.

4. Future protection

If you opt for a paid up in 20 whole life policy at age 20 then by age 40 its fully paid for! For the rest of your life. It will just sit there accumulating value while you are out enjoying life, vacations, holidays, etc. It will be there until you die or, if you decide you no longer need it, you can cash it in for its surrender value which could cover years of retirement expenses or any large, unexpected costs later in life.

This table should give you a better idea of your possible savings if you were get insurance now vs later.

The future is unpredictable. Having a policy in place gives you the peace of mind that your future is secure, and your current or future family is protected. Its so much more affordable than you may think especially at a younger age.

Do something today that your future self will thank you for.