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Is life insurance worth it for young people?

Life insurance is generally the cheapest for younger applicants. LUIS ALVAREZ/Getty Images

Life insurance provides critical financial protection for millions of American adults. 

It's generally advisable to have a life insurance policy if you have a mortgage, financial dependents or outstanding debt that otherwise would be left to others to pay. Life insurance in the right amount and in the right type can be the difference between protecting loved ones and leaving them in a precarious financial situation.

While this type of insurance is helpful for a wide range of adults its benefit isn't always well known when it comes to younger applicants. Is life insurance worth it for young people? Or should they skip it and save the monthly premium? Those are the questions that we will explore below.

If you're considering life insurance then start by getting a free price quote so you know what to expect.

Is life insurance worth it for young people?

Life insurance is generally beneficial for many adults - including younger people. Here are three major reasons why.

It's cheaper

Life insurance is almost always cheaper for younger applicants. As you age, health issues are more likely to arise, making you riskier to insure. That risk is often reflected in higher monthly premiums. But if you apply when you're young and healthy (and demonstrate it by taking a medical exam) you'll put yourself in the running for the lowest-priced policies. 

This is true for term, whole and no-exam life insurance policies - all will be cheaper for younger candidates than they will be for older ones. So if you want life insurance but don't want to break the bank to get it you should secure a policy now. Every birthday that passes will make it a little more expensive.

Get a free price estimate here now.

It's comprehensive

Life insurance coverage amounts range from thousands to $1 million or more. But policies in the latter category will generally be reserved for younger applicants. Seniors may also be able to get them but they'll pay exponentially more than someone in their 30s or 40s. Not only will younger candidates pay less, they'll also get more protection than older adults. It's not uncommon for someone in their 30s to have a policy worth $1 million-plus for a monthly cost of less than $100. There will never be a better mix of cost and coverage than there is when younger adults apply for a policy.

There's more time to grow its value

The two main types of life insurance are term and whole. Term lasts for a set time period of the policyholder's life and then expires. Whole life insurance lasts for the duration of the policyholder's life and it comes with an attractive cash reserve that can potentially be accessed while the insured is still alive. That cash account needs to grow, though, so it won't be immediately available. 

Younger people have time to grow their whole life insurance policies. Since they have years - if not decades - left in their career they can afford to grow their whole policy without using it to make ends meet. While whole life insurance tends to be more expensive than term life insurance policies, the cost may be worth it for young people who are looking for a backup cash alternative that they can utilize in the years to come.

Get a free price quote online now and see what you're eligible for.

The bottom line

Life insurance can be advantageous for a wide swath of adults. For younger applicants, due to its low cost and high coverage amounts, it's particularly helpful to secure now. Those interested in whole life insurance policies should also apply as soon as possible in order to start building the cash reserve those policies come with. 

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