Why you might not need life insurance in your 20s
It’s important to note that, in some cases, life insurance might not be an immediate need for 20-30 year olds. If you are single with no dependents, and no significant debts like student loans or a mortgage, you can likely hold off on purchasing life insurance.
However, even if you don’t need it quite yet, purchasing life insurance should be on your radar once you begin to take on some significant expenses and responsibilities.
The case for life insurance in your 20s
The biggest benefit to purchasing life insurance in your 20’s is that the earlier in your life that you get it, the more affordable it will be. Each year that you delay buying a life insurance policy, the cost of premiums increase by an average of 8-12%. If you’re in good health—your rate will be even better. The longer you put it off, the more risk there is of developing health issues that can make life insurance more expensive or even unattainable.
A common mistake made by millennials is overestimating the cost of life insurance (more on that below). In reality, a 25 year old non-smoker in good health can get a 10-year term policy with a death benefit of $1,000,000 for as little as $58 per month (with some Ethos term products). That’s less than many gym memberships.
There is some disconnect between perception and reality around life insurance and how it fits in an individual's overall financial picture. Here are some stats that illustrate common misconceptions young people (and others) may have about life insurance:
The takeaway here is that Ethos offers affordable, accessible life insurance that can be applied for in a matter of minutes. In the unexpected event of your death, it can protect your loved ones from the burden of your financial obligations—like private student loan debt.