At first glance, this might seem like a redundant question. To many people, the direct answer is NO. But if we look closer, there will be different things that may change your opinion. There are many benefits from life insurance in general, but let’s be specific to the 20s of your life.
So why do we need life insurance while you’re at the very early stage of life without many risks of health issues, and there are way more things to focus on, plans to do, and a whole wide world to change?
People tend to ignore or avoid talking about bad things that may come to their lives until it happens. And bad things do not choose the age; they can come to anyone without warnings. When you dare to look right into them, a question that pops out is who will take care of your beloved ones – your own family with small kids – the ones you care about the most. Imagine how it will affect their lives when you are not available to support and assist them. You wouldn’t want them to sacrifice their time, money, their interests, opportunities because of you. Life insurance won’t reverse what happened, but it will give financial support to take off or reduce your family’s burden.
Investment for future
Take it as a long-term investment for the future. It may not be the wisest choice to invest in insurance when you are a professional investor. But for a young person like you who wants to focus on career development and new family life building, life insurance is a good option, especially when you choose specific plans that focus on investment. It’s a safe way to invest because the life insurance’s investment funds are led and operated by professional investors. In that scenario, what you contribute is not spending; it is an investment, and you will get the returns. Moreover, the power of compound interests and reinvestment will multiply your capital. So, use life insurance as an investment and start it early and consistently.
Younger means cheaper
You may also think that you should invest in things like insurance when your career and financial condition are stable, or you have plenty of money. In fact, life insurance is much cheaper than you think, and it takes a small proportion from your income.
According to the 2020 Insurance Barometer Study, for a $250,000 death coverage, a healthy 30-year-old woman only needs to pay $160 per year, which is $13 per month. The premium will be lower if you’re in the 20s. So, you only need to spend a minimal amount every month on insurance rather than spending on not-so-important needs. But it’s a significant investment for the future.
Among bad habits, types of careers, age is one of the most important factors to calculate the
amount of money you have to pay per month. As you get older, you are more likely to have health problems and the higher the risks. Insurance companies need to compensate you for those risks. At the same coverage, the youngsters usually pay two times or three times less. Besides, when you are young, insurance companies tend to accept your files quicker, without asking you to do various health checks.
Peace of mind
With just a small amount every month, you buy the peace of mind that whatever happens to your life, you’re covered. You’re good to change the world in your own ways and enjoy your journey without worrying about the unpredictable. Moreover, you’ll feel more planned for your own life and more responsible for yourself and your family.
It turns out, the younger you are, the more you need to buy life insurance because it will maximize the benefits of lower monthly insurance premium, more acceptable profiles, and peace of mind to work for career goals and life ideals.
There are a lot of good insurance companies in Canada for you to buy insurance from, like TD Life Insurance, Manulife, Canada Protection Plan, etc. You can also start a session with Insurance Direct Canada, one of the most trusted insurance brokers in Canada to request for insurance quotes, find the suitable life insurance policies.