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by Indiana Farm Bureau Insurance

The top 3 reasons life insurance is important for young adults

Samantha Andersen planting in her garden with her puppy by her side

At 24 years of age, the last thing on my mind is life insurance. That even comes from someone who works in the insurance industry and knows how important life insurance is in a tough time.  

 

I have seen loved ones pass away and have had to watch friends and family members lose special people in their own lives. Losing someone you love is never easy but being able to make the grieving process as stress-free as possible is everyone’s goal. 

 

My mom lost her own mom when I was 11. My nana was the kind of person who always made you feel special. I remember how she would surprise my sister and me with our favorite candy in the secret candy drawer or slip me a few dollars after a good soccer game. She always made me feel seen.  

 

When she passed away from cancer it was a shock to my family, but also a shock to me. I saw at 11 that life was cut short sometimes and that showed me that I had to make the most of every moment.  

 

Fast forward to today, I am happily married to the love of my life, own a home and we recently welcomed our first puppy home. I love my job, my family, friends and co-workers that surround me each day. It wasn’t until last month that I realized that purchasing a life insurance policy was not only the right thing to do, but the smart thing to do.  


Samantha and Conner Andersen holding their new puppy


If I were to pass away tomorrow, I would not only want to leave behind fond memories throughout my life, but I would love to leave my husband and my family with something to make the process easier. It can be hard to think about the unimaginable, but when you do, you realize how the grieving process would be so much easier if your loved ones didn’t have to worry about every expense that comes with a loved one passing away.  

 

Death is never a conversation people want to talk about, let alone about themselves. If you start the conversation early and decide to purchase a life insurance policy now it can truly help, make the grieving process easier for the ones you love.  

 

Am I too young for life insurance? 

 

You are never too young to purchase a life insurance policy. In fact, did you know the earlier you purchase a policy, the cheaper it will be throughout your life?  

 

The cost of life insurance increases as an individual gets older… purchase your policy at age 25 or 38, here is the difference in premium for $500,000.  

  • Age 25 = $700 annually or $60.90/month 

  • Age 38 = $1,495 annually or $130.07/ month    


In this example, the policy’s premium is guaranteed for 30 years. However, which premium seems to make the most sense? 


3 reasons why life insurance is important for young people 

 

There are many reasons why life insurance is important for young adults. Whether you are talking about life insurance for millennials or life insurance for Gen Z, it’s important to start looking into purchasing a policy now rather than later. Here are the top three reasons why life insurance is very important for young people:  

 

  1. Savings, savings, savings – If you purchase a life insurance policy as a young adult you will be able to lock in a cheaper premium than if you decided to purchase a life policy when you are older. Paying for something that can’t imagine needing soon can be strange; however, knowing that it is something you will need in the future and securing it now means saving money, makes it justifiable.  
     
    An example that helped me understand this was the story of my first car. When I was 14 my grandma was not able to drive anymore. She had just purchased a used Toyota Camry and was going to sell it. Before she did, she offered the car to me for $3,000. At 14, I knew I still had two years until I could drive, but $3,000 for a car in pristine condition was hard to pass up, especially for a teenager. I decided to gather up my entire savings and pay my grandma for the car.  
     
    Two and a half years later, I pulled out of my parent’s driveway in my barely used Toyota Camry. At the age of 14, I didn’t necessarily have to have a car, but I knew in my future it would be of great use.  
     
    This may be how a life insurance policy works for you. You may not use it as a young adult, but down the road you may need it if the unexpected were to occur. In addition, you could purchase a policy that offers living benefits, which you could use while you are alive.  

 

  1. Young adults’ death statistics - Approximately 1.3 million adolescents and young adults (aged 15 to 24) died in 2020, resulting in a probability of dying in this age group of 11 deaths per 1,000 adolescents in 2020.1 Whether we like to think about it or not, there is a higher death rate in adolescents then we care to admit.  
     
    It is hard to imagine a healthy young person passing away, but it happened 1.3 million times in 2020, in fact. This statistic proves that it is never a bad idea to start planning now. It may sound morbid, but it is better to be overprepared than underprepared when it comes to the unexpected.  

 

  1. Our loved ones – Money and statistics aren’t going to force you into a decision like purchasing life insurance. Our family, friends, partners and even pets would never wish for a tragedy. But for those of us who have experienced watching a loved one pass too soon, we have seen what it can do to a family emotionally, mentally and financially.  
     
    Think about it this way, for those of you who went to college and accumulated debt over the years, what do you think would happen to that debt if you were to unexpectedly pass? That debt will be passed on to a loved one that will already have an emotional burden to deal with. Now they have a financial one, too.  
     
    If you were to purchase a life insurance policy, that policy may cover the cost of that debt. No one wants to think about this, but it does happen. Give your loved ones peace of mind and think about purchasing a policy today.  

 

Keep in mind these important reasons why it’s important to purchase a policy as a young adult.   

 

How much life insurance do you need? 

 

If you do decide to make the smart decision and purchase a life insurance policy earlier rather than later, you need to know that you have options. Indiana Farm Bureau Insurance offers three types of life insurance policies: 

 

  • Term Life Insurance – This policy can provide temporary coverage for a specific period in your life. This type of policy is the least expensive for those of us who don’t want to break the bank.  
     

  • Whole Life Insurance – This policy is protection that will remain in force for your entire life that has level premiums and tax-deferred cash value accumulation.  
     

  • Return of Premium Life Insurance – Not only does this policy offer you protection from the unexpected, but if you live 20 or 30 years of the life of the policy, you will receive some of your premium back to do with it what you want!  

 

Each policy can be designed to fit what you want out of your life insurance policy and the best part about it is that an agent can help guide you through the process. You aren’t required to be an expert on all things life insurance at 24 or even 84; that’s why we have qualified agents that can help us understand. 

 

 

Calculate how much life insurance you need  

 

Determining how much life insurance you need can be done within minutes. Simply fill out the life insurance calculator to learn about how much life insurance you may need.  

 

 

Would you like a free life insurance quote? Simply get a quote online and one of our experienced insurance agents will guide you through the next steps.  

 

Don’t just take my word for it. Amy Kraft, senior public relations specialist shared her own story to tell us all about how life insurance saved her and her dad far more than just money:  

 

 

The journey of life can be long for some and short for others. I hope your journey is as long as possible, but, in the event of it ending sooner than expected, make sure you are covered not only for your own sake, but for your loved ones who were there for you when you needed them the most.  

 

1 World Health Organization. (2022). Older adolescent (15 to 19 years) and young adult (20 to 24 years) mortality. Retrieved from: https://www.who.int/news-room/fact-sheets/detail/levels-and-trends-in-older-adolescent-(15-to-19-years)-and-young-adult-(20-to-24-years)-mortality#:~:text=Key%20facts,aged%205%20to%2024%20years