YouTube Review: Why You Need to Buy Life Insurance in Your 20’s - CNBC

Hope you are having a great day today. I am writing a review about the Youtube Video titled: “Why you need to buy Life Insurance in your 20’s”. 

The most obvious reason to buy life insurance is when you have clear insurable interests and want to be financially protected from a catastrophic accident. For example, you may have large debt obligations from student loans or a mortgage that you do not want to be passed on to someone else. You might also have a spouse or children who rely on your income, parties who could depend on insurance claims to survive if something unfortunate happened to you.

Insurance can have other features besides a death benefit, however, which means there might be other good reasons to buy a policy. Some policies provide support for certain medical problems, such as cancer or paralysis. Permanent life insurance policies can serve as tax-advantaged savings vehicles through the accumulation of cash value.

Here are a few points to consider why you should buy life insurance

• Co-Signed Student Loan

• Took out loan loan to start small business

• Financially Support a Relative

Most young Americans are not thinking about life insurance policies, but they should. Life insurance is the ultimate financial tool for those big "what if" moments. It can be useful even when the death benefit is not triggered, as long as it is used appropriately. Life insurance is not a panacea, and some younger Americans may not have the resources to devote to large policies. But it is a mistake to assume that only older couples with children and homes need life insurance.

Key Take Aways:

Life insurance is often a smart financial move, providing a safety net for your loved ones and beneficiaries if you die prematurely, and may even accumulate cash value.

Life insurance policies will always be cheaper in annual premiums the younger you are when you buy your policy.

Good health also translates to lower insurance costs and buying a policy younger also lowers the chances of having an illness like diabetes or heart disease.

The Bottom Line

Even if you cannot afford a permanent life insurance policy, most 20-somethings can receive very good term policies for very low costs, such as $200,000 to $300,000 in coverage for $15 to $20 a month in some cases. More importantly, some term policies can last for 20, 30, or 40 years; you could be covered at a very low cost throughout your entire working life.