top of page

3 Life Insurance Questions Answered for Young Adults

September 20, 2021

When is the best time to buy life insurance?

To answer this question, you have to think about why you are buying life insurance in the first place. Life insurance is for family protection or income replacement. If you are working and helping provide for your family and you were to pass away unexpectedly, you would want your family that was left behind with some sort of money to help take care of themselves without you there. With that said, buying life insurance when you get married or having your first kid is the best time to buy life insurance.

family playing in the field in Indianapolis, IN and Chicago, IL

How does life insurance work?

Our agency believes the best type of life insurance is level term. This is the most simple life insurance policy. You know what you're getting and there is not added incentive for the agent to try and sell you on anything extra. You choose the death benefit, meaning the amount of money that gets paid out if you die during the term of your policy. The death benefit typically ranges between $100,000 - $1,000,000. You choose the length of time for your policy, also known as the term. The term typically ranges between 10 - 30 years. The premium stays the same throughout the life of the policy, and you can pay, monthly, quarterly, semiannually or annually. For example, say a 30 year old buys a 20 year $500,000 life insurance policy. Their estimated premium may be $25 per month for 20 years. If they die during the 20 year period, $500,000 will be paid out to the family. If they do not die during the 20 year period, the policy will expire.

What are the factors that determine the premium?

  • Your death benefit and term

  • History of smoking or cancer

  • Your height and weight

  • Your age

money wrapped in a bow in Indianapolis, IN and Chicago, IL

All in all, life insurance might be the best investment you can make as a young adult. You end up paying a couple thousand dollars for hundreds of thousands of coverage on your life if you were to die, and it really helps protect the ones you love if something unexpected were to happen. You may think that you won't die, but every day is a gift and no day is guaranteed. The idea is you buy life insurance when you are young, just starting a family and starting your career. You buy it for 20-30 years and during that time build up your other forms of savings for your family so that if your policy expires, you will have enough saved up to pass on to your family if you die.​ Call us or fill out this form if you are interested!

bottom of page