Life Insurance in Your 20s

5 min read

Life insurance may not always be a top priority if you're in your 20s, but it can be financially beneficial in the long run. Since life insurance rates increase as you get older, getting life insurance in your 20s allows you to get a lower rate and lock it in so that it never increases, as long as premiums are paid.

Life insurance helps give you peace of mind for the future, and it provides financial security for those you love. If you have kids, considering life insurance and how much you need is important. If you have a mortgage or debts that someone will have to continue paying after you're gone, life insurance will ease that financial burden for them. Let's talk about the benefits of getting a life insurance policy in order today.

What are life insurance options for young adults?

It can be a bit daunting to understand all the types of life insurance available for you. So, here's a brief rundown of the different types of life and health insurance that you may want to consider.

Term Life Insurance

Term life insurance is often an appealing option for people in their 20s because of its flexibility and cost. Term life insurance generally provides the largest benefit at the lowest rate, providing protection for a specific period of time—generally 10, 20 or 30 years.

Maybe parents get term life for that reason: to maximize coverage for the years it's really needed. Maybe you need something in place for 20 years until kids are out of college or for 30 years until a mortgage is paid off.

Here are the benefits to this type of plan:

Choice of policy length: Term life insurance plans can last for 10, 20 or 30 years, giving you flexibility to get coverage for the amount of time you will need it.
Coverage amounts that meet your needs: You have a wide range of coverage amounts to help meet your needs and budget. With a Gerber Life Term Life policy, rates stay locked for the entire term.
Convertible policies: If you decide you want to extend your coverage, you can usually convert your term policy to a whole life policy without going through the qualification process again.

A few things to think about—term life insurance doesn't build cash value (a benefit of whole life insurance you can read about below), and you'll need to consider new plans at different stages of your life or when your policy reaches its maturity date.

Accidental Death & Dismemberment (AD&D) Insurance

20-year-olds don't often think about accident insurance because they're generally healthy, but fatal accidents can happen to you at any age. AD&D insurance provides protection in case of a covered accidental death. It also provides protection should you suffer a covered disabling injury, like a loss of limb, providing a payout if you're disabled and unable to work. Some benefits of an AD&D plan are:

Coverage virtually anywhere on Earth, 24/7 for qualifying accidents.
Helps protect your loved ones in case of death caused by qualifying accidents.
Rates are locked in for life, as long as premiums are paid.

Accident protection is often used as an additional insurance, since coverage is limited to certain events.

Whole Life Insurance

The benefits of whole life insurance are that it doesn't end after a certain amount of time, and it builds cash value over time. You can get a Gerber Life Whole Life policy now and keep it for the rest of your life. Here are some benefits to starting whole life insurance in your 20s:

Build cash value: Over time, your policy builds cash value. A small amount of your premium payments are set aside as cash value after the initial policy years. You can borrow from the cash value should you need or, if you cancel your policy, you receive the accumulated cash value. Learn more about how cash value works here.
The younger you are, the lower your premium.
Premiums don't change: Your premium rate is locked in and will not increase.
Lifetime protection: A Gerber Life Whole Life insurance plan gives you and your loved ones peace of mind and financial security that lasts your entire life, as long as your premiums are paid.

Whole life insurance isn't for everyone. Whole life insurance typically costs more than a term life plan. Everyone's needs are different, so it's important to know all of your options!

Why buy life insurance as a young adult?

So, do I need life insurance in my 20s? Getting a plan in order before other major events get in the way is a huge benefit. It can save you money in the long term, before potential health complications arise that lead to higher premium rates. The added security gives you peace of mind moving forward, and you'll also be more likely to get approved for the coverage you want.

Ready to apply? Our online application process makes it easy to get a quote and, if you like what you see, apply in just minutes. Once a policyholder, you can manage your policy and get customer support online—no phone calls needed! It's a simple process that also allows you to dive in and learn more about your plan and benefits. It also allows you to customize your future by giving you the options to build cash value or convert a Gerber Life Term Life insurance plan to a Gerber Life Whole Life insurance plan down the road.

Selecting a reliable life insurance company

Choosing a reliable life insurance company is an important decision. Contact Gerber Life today for your free quote if you're looking for an online insurance digital experience that offers:

Up to 10% off your premium with Easy Pay*
Paperless billing
High customer approval ratings
"A" (Excellent) rating from A.M. Best**

Budgeting for life insurance

Budgeting in your 20s can be tough, but life insurance doesn't have to break the bank. The younger you are, the lower your premium—your future self will thank you for locking in a lower rate now! Get a free, personalized quote today to learn about your options.

*With Easy Pay, payments are automatically deducted from your checking or savings account each month. Coverage begins as soon as your policy is approved and your first payment is made.

**Source:
https://www.gerberlife.com/about