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The Advantages of Life Insurance for Young Families

September 27, 2022
Our goal is to educate and advise on life insurance options, so you can feel confident in making the right choice, whether that’s through Quotacy or somewhere else. To ensure we provide accurate and trustworthy information, our writers follow strict editorial standards.

When it comes to life changing events, starting a family can be one of the most eye-opening experiences for young adults. It’s also a great time to re-evaluate your priorities and decide what’s most important for the future wellbeing of your loved ones. It’s time to learn about the advantages of life insurance.

Your main priority is now be your spouse and children. Making sure they’re protected and cared for.

To accomplish this, you need to plan for future events and possibilities.

Take a minute to think about how life would be for your loved ones if you couldn’t be around to provide for them.

Would they be ok financially without you? If so, then you probably don’t need life insurance.

But if an image popped into your head of your family struggling to pay bills, then you definitely need life insurance.

Buying life insurance when you’re young has three main advantages:

  1. You lock in great rates.
  2. You protect your loved ones.
  3. You’re ensuring your future insurability.

Let’s discuss these advantages.

See what you’d pay for life insurance

Comparison shop prices on custom coverage amounts from the nation’s top carriers with Quotacy.

Locking Great Rates

Young families are prime candidates for affordable temporary life insurance, otherwise known as term life insurance. Term life is nothing fancy and it’s all most people need. Just a simple policy that ensures your loved ones will be able to maintain their current standard of living and pay your end-of-life expenses if you die unexpectedly.

Buying life insurance at a younger age can save you hundreds of dollars each year. Once you buy a term policy, you lock in your rate for the entire term length.

Term lengths vary from 10-40 years. So, as you age and even if you develop a health problem, your rate won’t increase during the term.

To see how affordable term life insurance is, take a look at the tables below. These quotes show how the rates can vary by age and vary by how long the coverage lasts (the term length).

Monthly Quotes for a $250,000 20-Year Term Policy for a Healthy, Non-Smoker
Age 25Male: $12.10
Female: $10.74
Age 30Male: $12.45
Female: $10.87
Age 35Male: $13.12
Female: $11.84
Monthly Quotes for a $250,000 30-Year Term Policy for a Healthy, Non-Smoker
Age 25Male: $17.35
Female: $14.54
Age 30Male: $18.06
Female: $15.51
Age 35Male: $20.82
Female: $17.91
Monthly Quotes for a $250,000 40-Year Term Policy for a Healthy, Non-Smoker
Age 25Male: $24.79
Female: $20.18
Age 30Male: $29.42
Female: $22.19
Age 35Male: $37.66
Female: $28.72

Get your own quotes here: term life insurance quotes. No contact information required.

Coverage amounts range from $100,000 to over millions of dollars. Play around with the quoting tool to see what works best in your budget.

Unsure how much coverage you need? Try our free life insurance needs calculator.

Protecting Your Loved Ones

Term life insurance protects against the what-ifs in life. What if you die in a car accident driving home from work? What if you’re diagnosed with cancer?

You’ve likely seen a Go Fund Me campaign. Maybe you’ve contributed to them. Go Fund Me states that they host over 125,000 funeral fundraisers each year.

These are families struggling to pay bills due to a loved one’s death. Don’t leave your family to struggle.

Term life insurance is affordable. If you have people depending on you, get life insurance.

Ensuring Your Future Insurability

Most term life insurance policies have conversion and renewal options. These options are essential in protecting your family’s future.

Term life insurance policies aren’t designed to last forever. They provide extra precaution during your prime earning years. The years your family relies on your income the most.

However, let’s say you bought a 20-year term policy when you were 30 years old. And a few years before your term is set to expire, you’re diagnosed with stage IV thyroid cancer. What now?

This is where the conversion and renewal options are life-saving for your family.

A cancer diagnosis makes you uninsurable. You would not be able to buy a new life insurance policy to make sure your family is taken care of and can pay for all the medical bills you’re about to accumulate.

However, your current term life insurance policy allows you guaranteed insurability via converting or renewing your coverage.

With the conversion option, you can convert all or a portion of your term policy into a permanent policy. Mind you, this will increase your premiums exponentially. But instead of a term policy, you’ll now have a permanent policy which means your family will receive a death benefit check when you die.

With the renewability option, you can choose to simply renew your current term coverage another year. Renewable premiums are very expensive and will increase each year you decide to renew.

Choosing between converting and renewing will depend on why you need to continue the coverage. Were you diagnosed with a terminal illness? Then renewing may make the most sense.

Were you diagnosed with a chronic illness that makes you uninsurable for a new policy? Then conversion may make the most sense.

When you’re preparing to buy a term life insurance policy, check with your agent to determine if it has conversion and renewal privileges.

To wrap things up, if you think you’re too young for life insurance, I’d say the opposite is true. You’re the perfect age for life insurance!

Buy it cheap now and it can last up to 40 years. By that point, your children will be grown, your mortgage will be paid down, and you’ll be heading into retirement with other assets and savings.

So, take a look around the room. Do you have pictures of someone you love on your desk, as the screensaver on your computer, or hanging on the wall? Or maybe you can hear laughing (or screaming, if we’re honest) in the next room. If so, take the time to buy life insurance to protect them.

Note: Life insurance quotes used in this article are accurate as of September 27, 2022. These are only estimates and your life insurance costs may be higher or lower.

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