8 Reasons Why You Should Buy Term Life Insurance At 25

4 Jun

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Life Insurance is something that you will never make use of but your family will, and that’s why it is important to have. Having life insurance is one way in which you can allow your beneficiary to live in your memory while mourning your death. However, many people don’t see the point in buying life insurance until they get much older, when a matter of fact is that you will never know when you will need life insurance if you don’t already have it.

life insurance

Peace of Mind

No matter how old you are, you know that anything you can happen. Next time you’re crossing the road, next time you fall over or any accident at all could result in a terminal injury. If you know that you will be protected from the time you are 25 onwards, you get that feeling that even if you should reach an untimely end, those that you care about will continue to be supported. Whether or not you are the primary wage owner in the house is irrelevant, because they can do whatever they choose with the money so that they can remember you in a good way.

Term Life Insurance is the Best Way to Pay Premiums

There are many different options to pay life insurance premiums and it may seem like it does not matter which one you choose, but depending on the income that you are earning, it does matter. Term Life Insurance means that you pay the premium for a certain amount of time, and then you can change insurance lenders or continue on a different premium. At such a young age, you need to be able to change to what suits your needs.

You’re at your healthiest

Depending on your situation, chances are that at 25, you will be the healthiest at the age that you first start thinking about life insurance. Since many life insurance lenders require that you take a medical test before they can give you your life insurance, you have a much higher chance of passing the medical test than when you get older. While you may be wiser than, depending on your circumstances, your body might not move like it used to.

It’s Cheaper than you think

Many people forgo life insurance because they think that it costs a lot more than they realize. Life insurance does come relatively cheap in some circumstances. Usually, companies will charge you an amount per day or per week and it will come straight out of your bank account. This makes it a lot easier on you in the sense that after you initially sign up, you don’t have to do anything else to be covered with life insurance.

Protects your family

Many people as they get older start to think about having a family. This family will be your own and you will want to protect them. Having life insurance can protect them if your death comes in an untimely circumstance. Most term life insurance policies will cover you from anywhere between 5-10 years, but this varies greatly depending on the company, as some offer longer or shorter benefits and premiums. So with life insurance, you can protect your family if something happens from the very beginning.

You have plenty of options

When you are younger, there are plenty of options when it comes to insuring yourself for life insurance. Whether or not you realize it, there are plenty of companies looking for your business, so you can compare life insurance quotes to find the best company for you, with the least chance of a rejection notice. Some people will usually go for the name they recognize from television, but if you take significant time to look into your options you can find the best policy at the cheapest premium.

Death Benefits can be tax-free

This might seem like an odd reason to get it, but if you find yourself as the beneficiary to a loved one’s life insurance policy, usually it will come to you tax free. This means you receive the full policy amount compared to a lot of other taxed earnings. If you were the one to pass on, your family or beneficiary would be able to live out there days with the premium that you paid for without having any of it go towards the government unless you choose to do so.

Term Life Insurance is Cheaper

Due to the research done that places term life insurance as infrequently paid out, it usually comes cheaper to the dollar-coverage ratio. This will allow you to get a cheaper benefit in the case than any other kind of premiums that you might have the choice of paying.

So, go out there and get life insurance for that peace of mind. No matter how old or young you are, anything can happen and you want to make sure that your family is safe and supported, especially in their time of grief.

Author Bio: My name is Lance Peterson; I am a graduate in Finance from UPenn. I am a banker, whose expertise stretches to areas like loans, investments, hedge funds, insurance and other related fields. I like keeping myself updated about the global financial scene.

13 Responses to “8 Reasons Why You Should Buy Term Life Insurance At 25”

  1. Jewel August 22, 2013 at 5:01 pm #

    Every business in our free enterprise system feels competitive pressures. But the medical industry seems immune. You don’t see any of them going out of business because they cannot compete.Hence the price only goes one way .. up. Personally I believe it is because of medical insurance which is nothing more than other people paying for your health care. If medical insurance didn’t exist what do you think would happen to prices?? They would drop like a lead rock. This year the average health care premium where I work (paid for by my employer) is $24,000 per family. Then we pay more and there is a co-pay. Now this is insanity don’t you agree? How can we stop this monopoly?

  2. Alana August 22, 2013 at 6:33 pm #

    I thought life insurance was supposed to be for parents or a major breadwinner in the family, so if something were to happen to them the family would be ok, not lose a house etc. Whats the purpose of it for children, just to cover the cost of buriel then? If you don’t have enough money, god forbid to bury your child in case the person must have low income/no savings at alll, how are they affording the monthly premium then, although low. I think im missing something please enlighten me! Thank u

  3. Nu August 22, 2013 at 7:16 pm #

    We are looking to get life insurance for my husband and myself. Permanent over term. Im a stay at home mom of 3 kids and we are planning to have another baby. We are currently living in Europe because my husbands job is here. We are renting but want to buy a home. We plan to move back to the US at some point, when my husband can find a secure job there and when we can save the money to be secure in an unstable economy.

    Basically, if my husband dies (God forbid!!) the children and I would move back to the US and need to buy a house, vehicle and either ship our belongings from Europe or furnish a new house. Plus, I havent worked in about 5 years since I have been raising my babies and I dont have a college education. I do plan to send all the kids to a public university when that day comes. I am capable of working but dont know what kind of paying job I could get with only a hs education.

    So how much do you think my husbands policy should be? And for myself? Whats the average cost monthly for a married couple having permanent life insurance?

  4. Ronna August 22, 2013 at 9:35 pm #

    My husband and I each have variable univeral policies…our agent is suggesting we change over to guaranteed universal policies – we will save a few hundred dollars a year and add 100k onto the benefit. My husbands policy was bought in 1999, mine in 2001. We were not using the existing policies as an investment. Does it make sense to change now? (we are in our early 40’s) The agent suggested that in the future insurance costs may rise, and we may not be able to afford the current policy- but the new policy rates are guaranteed to never increase. Any thoughts or advise?

  5. Corinna August 22, 2013 at 9:35 pm #

    ok i run every morning between 5 to 8 miles plus 2 months ago i started with strenght training i used to weigth 112 but i was tryin to get to 110 and i started to run more and to exercise more i ended up in 125 i started drinkin protein too its hat normal like to gain all that weight after all this exercise.

  6. Haywood August 22, 2013 at 10:09 pm #

    Guardian Insurance Sells a Whole Life policy with Paid Up Additions (additional premium) which grows the cash value and the death benefit. Who should consider buying such a whole life policy?

  7. Hobert August 23, 2013 at 10:57 am #

    Hi Me and my wife are about to buy an appartment and our mortgage provider require us to get a Life Insurance…
    our mortgege info:
    30 years mortgage term
    Fixed 2 years
    this all you need to know 🙂 … my questions are as fallow…

    1. is it better for us to get Life Insurans just for 5 years and then Renew our policy for another 5 years etc… or should we purchase our Life Insurance for 30 years straight away.

    I figured out after a few hours of checking every possible option on moneysupermaret.com (Having regard to our increasing age) that :
    buying life insurance every 5 years will cost us 8717 GBP over the 30 Years
    but if I purchase our police for 30 Years straight away we will pay 8140 over the 30 years period
    so there is no much different…
    my point is that with the first option I might be able to find a better deal after every five years
    but on the other hand taking 30 years policy we will know exactly how much we pay every month for 30 years so thats good…is it?

    2. referring to the above… DO I understand this Right? 5 years or 30 Years Policy is there any different really?

    3. What if we take 30 years policy and then after few years we decide to change our mortgage from 30 years to 25 years…can we then adjust the life insurance policy to this ? on the policy we have alerady checked I read that POLICY CAN BE AMENDED IF CIRCUMSTANCES CHANGE is this mean what I think it means? and will this decrease our monthly premium? sorry but I’m really new to this and I realise that I might sound silly 🙂

    4. If we take the 30 years policy can we change our Life Insurance provider after e.g. 2 years when our 2 years fixed is finished? is it free of charge?

    Ufff this is it 🙂

    Thank you so much for any response
    kind regards Dave
    sorry for giving misleading information our mortgage provider do not require us to get a life insurance they just recommended to us… 🙂 and I’ll add only that we take a mortgage in the UK
    thank you for help

  8. Tyesha August 24, 2013 at 11:30 pm #

    im 22 years old and ive been smoking for 8 years now.I want to quit mostly because of the cost of it not because smoking has started making me sick or anything.So basically my motivation is money.Im thinking that i could do other things with the 8-12 euros i spent per week on cigarretes…
    I wanna quit but i cant even bare the thought of having to deal with withdrawal syndrome!
    Im a serious nicotine addict!Whats the best way to quit smoking from your personal experience?
    Thank you in addition!

  9. Jamila August 25, 2013 at 12:21 am #

    While researching the presidential candidates, I came across an article about dishonestly, secret meetings and violations of a “sunshine law” by Hillary Clinton while she was in charge of the Health Care Task Force. Is this what caused the failure of “universal health care” during the Clinton administration? If true, should we seriously consider why things would be different now? Or was this incident part of a vast right wing conspiracy?

  10. Ferne August 28, 2013 at 7:47 pm #

    They have been talking on the news about how the atmosphere has more than 400 ppm of carbon emissions now, the most in a million years. I have known for over a decade that global warming was a serious problem, but just recently decided to try to do something about it.

    I started driving 100 km/hour instead of 120 km/hour, which saves me 7 litres of gasoline a week as I drive 1 hour a day. That might amount to half a ton of co2 emissions in a year. I fixed a leaky faucet I’d allowed to leak for a year which was probably wasting 5 gallons of water a day. The carbon emissions of the heating of said water and loss of filtered water would be 0.20 tons of co2 over a year.

    I would have saved myself 300 dollars with the driving speeds in a year, and 50 dollars energy bill for the heated water in a year.

    I was reading how eating meat is very carbon intensive, and although number vary wildly nobody seems to dispute that all meat is much higher in co2 costs than veggie alternatives. Having been Vegan for 1.5 years for ethical reasons in my past it seemed an achievable goal to go vegetarian and save 1-3 tons of co2 being emitted by my diet.

    Knowing my habits, I went to the store to buy veggie meat slices, veggie burger, veggie dogs to replace the meats I have been eatting, but then came to the realization that picking these foods would cost me an extra 2-3 dollars a day extra, every day. In a year that comes to 700-1000 dollars spent just so i don’t eat meat, plus the self control I would need to exert.

    Then I thought about the sites advertising achieving carbon nuetrality by donating money to renewable energy projects and carbon negative projects and how they say if you are trying to negate 1 ton of co2 you would need to donate beween 15-25 dollars. This means that it would be FAR more economical to donate 75 dollars to a renewable energy project than to be vegetarian.

    Is there some reason I am not understanding that this would be untrue? Why would ANYONE spend 700 dollars a year more to do something they could achieve otherwise with 1/10 the money?

  11. Hannah August 30, 2013 at 7:30 am #

    even garnishing their wages or slapping them with stiff fines (when they are already barely making ends meet) instead of focusing on reducing the cost of health care for all americans like Obama’s plan does?

    Why is Hillary not going after cost reduction? is it perhaps because of the lobbysts money the health care industry has given to fund her campaign?

    and what about NAFTA? has she announced she would repeal NAFTA that Bill Clinton gave us? would her lobbysts contributors even let her do that?

    How can a candidate really make serious changes to the status quo when they are not rebuking the primary reason why government no longer serves the people?

  12. Tawna September 2, 2013 at 4:19 pm #

    for 5 million dollars for 5 kids.
    A million per child.
    Two are 18+ and receive money right away.
    Younger 3 will live with one of the elder.
    How much will the bank cut each month to take care of the younger children (7,8,and 17)?
    The money (full million) stays in the bank for each until they turn 18.

  13. Jae September 16, 2013 at 5:14 pm #

    I am in the process of purchasing term life insurance. I received the policy to review, while doing so I notice there are two different amounts: 1 is the face amount, which is the amount I requested to be covered at… 2 is Minimum face amount which is 10 times less the original amount I requested to be covered at. What are the differences between both of them? Why would this be on the paperwork?
    Thank you very much!

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