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Why You Need to Purchase Life Insurance While You Are Still Young

As a young adult, all you may care about right now is making enough money to get through the day, month, and the rest of the year. As such, things like owning a home or even having kids may not cross your mind, let alone getting life insurance.

Unlike the other two options, however, we recommend that you get life insurance regardless of how old you are. Why you may ask? Life insurance policies can be quite pricey, after all, and that cost can easily be directed at another thing you may need right now, such as saving up for a new motorbike—or getting several cups of coffee every day.

Would it surprise you to know that life insurance policies are much cheaper when you are younger? Here are the reasons you should purchase life insurance while you are still young:

The Premiums Are Cheaper

One of the most significant factors insurance companies consider for clients investing in a life insurance policy is their age. In many cases, the younger the individual is, the cheaper the offer for the premium will be. This is because when you are young, the chances of living for more years are much higher.

A 20-year-old professional will more than likely have more time to pay for a 30-year policy versus the same policy with a 50-year old, for instance, making the odds better for the insurance company. This extra time translates to more time paying for the policy, which is why insurance firms can charge a much lower premium a month the younger you are.

Health Plays a Huge Role in Life Insurance Premiums

Another benefit of being younger is the fact that individuals are much more likely to be in good health compared to older folks. This is a factor that insurance providers also take into account when deciding on the premiums.

For this reason, most insurance providers typically ask individuals about their lifestyles and habits. If you want to get a life insurance policy for yourself, you will be asked the same things. Habits like smoking can easily mean the person isn't in good health, and the premium can shoot up.

The reason premiums are affected by health is simple. The healthier you are, the less likely you will die from diseases. This means more time you may have to pay off the life insurance policy, meaning less risk on the provider's end.


All in all, life insurance is best bought young simply because it is much cheaper! With better health and a lower risk of dying, insurance companies can easily provide lower premiums that give you access to life insurance without breaking the bank. That being said, one of the most amazing things about life insurance policies is that you do not need to pay for things you do not need.

Different individuals have different needs, and to cater to this, life insurance providers will come up with custom policies to satisfy each of these requirements. A permanent policy offers you the ability to grow its cash value, for instance, which you can later enjoy paying for other things like your education, home improvements, and so much more.

Swell Financial Planning offers various financial services in Queensland to help individuals stay on top of their finances. If you are looking for a finance and insurance consultant to make the best financial decision possible, work with us today!


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