Life Insurance for Young Adults

Why you're not too young

Why you're not too young for life insurance

When you’re just a few years out of college and have a mountain of student loans to pay off, one of the last things on your mind is: buy life insurance.

You’re doing the things people do at a young age, trying to meet basic expenses and maybe setting up your first 401(k), and it can be tough to justify any additional expense. You may even think that life insurance is only for recent parents or mid-aged people.

But, young adults are in the very best position when it comes to purchasing a life insurance policy.

What does life insurance do for young adults?

The advantage of youth

First, youth is a cost advantage. For a 30-year-old, the typical $500,000 Guardian whole life insurance policy costs $4,930 per year.

For a 20-year term life policy, which costs less than whole life, what you can save by signing up when you’re young could pay for a new iPhone upgrade every year.

Caring for those around you

If you pass away and don’t have life insurance, some costs could be a burden on those around you. For example, the average cost of a funeral is $7,000 - $10,000. And if anyone, like a parent, has co-signed for loans or other types of debt you have that person could be responsible for the debt, or related taxes.

Building for the future

The third thing to know for young adults specifically, is that a whole life insurance policy enhances your financial portfolio, as part of the range of planning products and investments that will help you throughout your life.