I know, I know. “Financial products are boring dude, I just wanna bench my bodyweight, drink my energy drink, and fly to Bali”. I get it, so do I. As a young adult, getting life insurance may not be at the top of your priority list. You’re most likely healthy, not married, don’t have any children yet who depend on you, and you’re most likely on a tight budget. 

If your interested in building wealth in the long-term- while playing financial chess in the short term, investing in life insurance in your 20s or 30s can be a very financially savvy move that sets you up pretty nicely in the near future. 

The Game 

 There are levels to the game of finance. It’s not likely that you jump from level 1 to 100, without going through the necessary steps. Wealth is a simple game. All it takes is disciple and time. As you’re building your financial future, it’s important to put the building blocks in place- and build a great foundation that allows you to build a huge structure on top of it. Things like having an emergency fund of at least 6 months, a consistent income, savings, investments, and financial products like life insurance working in your favour- are all very important things to consider as a young person looking to build wealth and a well rounded financial position for their later years.

Some things to think about as a young person with life insurance

1Locking-in amazing rates
When you buy life insurance, your premiums remain the same for the rest of your policy. Buying Life insurance at a younger age locks in lower premiums and reduces the total amount you’ll spend on life insurance over time. This will literally be the cheapest you EVER pay for life insurance. You just can’t beat the life insurance rates you receive in your 20s and 30s. Along with your age, your health is another huge factor in how much you pay for your life insurance. Getting insured before any health conditions develop, such as high cholesterol or high blood pressure, lets you lock-in very affordable premiums for decades.
2Protect your loved ones for the future.
You may have student loans, credit card debt or financing on that new car – or perhaps you’re considering buying your first home. If you were to die early, life insurance can protect your parents or loan co-signers from the burden of paying off your debts. If you’re in a relationship and have a mortgage or any debts, life insurance can protect your partner from having to cover the remaining amount themselves, or losing the home entirely. Many young couples on a tight budget love using life insurance coverage in their financial planning, just in case something happens to the other. Another thing to note is that- just because you don’t have any dependents now- doesn’t mean you’ll never have dependents. You can literally have a baby 9 months from now, I know how risky you like to play it. Or even worse, something can happen to your parents, and now they’re dependent on your income. Investing now- means you’ll have protection in place, for whenever that happens. Whenever you become the person that they rely on. If you wait, it may be more difficult and expensive to get coverage.
3Build your credit
Your credit is your adult report card. Investing in life insurance strengthens your financial situation. With a whole life policy, as you’re insured- your policy accrues cash. And as that cash value of your policy grows, you’ll be able to borrow against it. Essentially, it’s building an asset while protecting yourself; and the younger you buy a policy, the more time your policy will have to grow in value.