Do You Need Life Insurance in Your Twenties?

Do You Need Life Insurance in Your Twenties?

April 20, 2022

In your 20s you are typically focused on starting the next phase of your life. You may be concerned about rent or mortgage payments, paying off your student loans, or saving to buy a car or house. Life insurance might not be high on your list of priorities, but there are some good reasons why it should be part of your financial plan.  

Life insurance is there for the big “what if” moment. Many people think that older folks that are married, with kids, and a mortgage are the only ones that need life insurance. The reality is that if you have any debt or do not have a policy to pay for your funeral costs all of those expenses will be turned over to your loved ones. Who wants to leave that financial burden on someone else during their time of grief? 

Purchasing life insurance can be much cheaper than purchasing at an older age. You could get the same policy in your 20s that you would in your 30s and pay less for it. Death benefits are not the only thing that your life insurance can be used for. Permanent life insurance may also serve as a tax-advantaged savings vehicle and accumulate cash value.  

Get Life Insurance:

Types of Life Insurance 

While there are variations of life insurance, it can be bucketed into two categories: 

Term: this is life insurance in its simplest form, it lasts for a fixed period. For example, Term to 70 would provide life insurance if you passed away before or at 70 years of age. Any age after would not be covered. The idea here is that you would not have the level of debt or dependents you have at a younger age. 


Permanent: These are life insurance policies with investment components. They can last for the whole life of the insured. There are several types of policies under this type. An insurance professional would be able to help you determine what is best for you if you choose to go the permanent route.  

Benefits of Getting Life Insurance in Your Twenties

As we already mentioned, it is cheaper. Up to 50% of people overestimate the average cost of a term life plan by up to 500%. Rates will also be lower when you are younger and healthy. Our partners at Ladder offer term life coverage you can count on starting at $5/month. * 

You have coverage even if you change or lose your job. Many employees provide group life plans; however, if you leave a job or lose your job, you cannot take that plan with you. Having an individual policy helps ensure you won't have gaps in coverage.  

Health really matters and health issues may come up later in life. Health issues can cause your life insurance rate to be much higher. If you get your policy at a younger age, your coverage won't be canceled due to health issues that come up later in life.

You are being responsible. By getting a policy younger in life you are taking responsibility and not leaving your debts and funeral expenses to your loved ones. 

Do You Actually Need Life Insurance? 

If you do not already have your funeral expenses covered, you have any debt, (think student loans) if you have children, or if anyone relies on you financially you may need life insurance.  

What type of life insurance do you need in your twenties? 

That is up to you and what you want your life insurance policy to do for you.  

Term life offers flexible protection for a specific period. And our partners at Ladder offer Laddering, where you can actually “ladder” down later in life and pay less for less coverage. You can also cancel at any time.  

Permanent life is going to give you lifelong coverage as long as you pay your premiums; however, it does come with a higher price tag. For some, the higher price tag is worth it because you know that you always have protection and, in some instances, can come with an extra cash value component. 

How much life insurance do you need? 

That really depends on your situation. Try our life insurance calculator to help you determine the amount you need. 

Ready to get started? 

You can apply for affordable term life insurance from our partners at Ladder in just 5 minutes, or if you’d like to explore other options reach out to us.  

*Pricing based on a 20-year-old female with a preferred plus rating for a $100K 10-year term policy 

Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers – for further details see  All insurance products are governed by the terms set forth in the applicable insurance policy.  Each insurer has financial responsibility for its own products.