When you’re in your 20s, for many, the idea of having kids or owning a home seems incredibly far off. “Maybe in 5, 10, 15 years,” you might be thinking. Having a mortgage and paying daycare fees seems better left to someone far older than you. At the same time, purchasing life insurance probably isn’t in the cards for you. After all, only “older” people buy life insurance.

There actually isn’t a “perfect” time to purchase life insurance, but buying life insurance may be done best younger in your life, even before you have everything figured out. There’s a lot of reasons why someone might buy life insurance young, and why it might make sense to buy life insurance ASAP, even if it seems like you’re “too young.”

In this article, we’ll get into some of the main reasons why you might want to purchase life insurance young, even if it seems like it might be “too young.”

Buying life insurance young locks in cheaper premiums.

As you may already be aware, purchasing life insurance at a younger age is guaranteed to lock in cheaper premiums for you. Life insurance premiums are largely influenced by your current age and health, and purchasing younger means that you are likelier to have a great medical record with minimal, if any, pre-existing conditions. The older you get, the odds of you developing a medical condition increase. For many, it only makes sense to lock in low premiums now.

As an added, you can buy the lowest level of term insurance right now to set the rate and lock in your premiums for the duration of the term, then later on extend the length of your policy or add extra coverage if need be. An Excalibur Defender would be happy to help you with this.

You have plans to purchase a home or already own one.

Nowadays, owning a home in your younger years is much rarer, and owning a home altogether is a significant accomplishment. It’s an asset you have that you should be proud of. Unfortunately, most Canadians do have to borrow a percentage of their home’s purchase price in the form of a mortgage and may spend between 10-30 years paying it off.

Now, if you were to pass prematurely during a period where you are currently paying off that mortgage balance, your family would either be saddled with the remaining payments or be forced to sell their home. You wouldn’t want either option, ideally. Life insurance can cover the cost of your home’s outstanding mortgage balance.

If you plan to own a home, sometimes locking in the lower rates is better for when you do end up owning a home eventually.

You plan to start a family or you’re getting married.

With life insurance, family is the most important thing. Life insurance basically secures your family in the event of your premature death, ensuring that they have the financial support they need to stay in their hope, cover debt, or cover daily expenses in your absence.

Buying life insurance even without having dependents currently means locking in lower rates for when you do have those dependents. And even if you don’t plan on kids but want to get married or are getting married, you may want to have coverage for your spouse so that they don’t have to dip into their retirement savings upon your premature death just to pay off your debts, cover your funeral expenses, or just to maintain their daily standard of living.

You have outstanding debts.

If you’re in your 20s or 30s, you might currently be paying off your remaining student loans. You might have credit card debt, or any other existing obligations that you are required to pay off. No problem if you have another couple of years to do so, but sometimes things happen. If you were to die while you still owed, for example, student loans, they could fall on the responsibility of your co-signer.

Many people take out student loans while they’re still young and healthy. An inexpensive, 10-year term life policy can help you to cover the costs of your student loans if you should pass unexpectedly, preventing your loans from becoming the issue of your loved ones or co-signer.

You want to buy life insurance young – while you’re still eligible.

As you get older, your odds of developing a certain illness or health condition increase. Certain health conditions may even render you ineligible for certain life insurance policies, and you’ll end up having to go through other options to get coverage that may cost you more and cover you less. Purchasing life insurance while you’re still young and healthy helps to prevent any circumstances where you may be denied coverage due to your current health conditions. Waiting until later in life only increases the odds that you might get sick and therefore be ineligible for coverage.

One of the biggest nuances surrounding life insurance is that you can be too young to buy it. You can buy life insurance at any age – adults can even buy life insurance for children under 17, and pass the ownership of those policies onto the child once they hit the age of 18. This can even help to lock in extremely cheap premiums for that child’s lifetime.

Overall, the decision to buy life insurance is yours. Give us a call or get a quote from Excalibur Assurance to begin getting life insurance to protect your family and assets today.