Do I Need Life Insurance in My 20s?

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If you’ve just graduated or you have just started your career, then life insurance is probably the last thing on your mind. When you’re young, there are about a hundred other more exciting things to spend your money on, and it can seem like an unnecessary expense.

However, as you settle into your adult life and your responsibilities expand, thinking about things like life insurance becomes increasingly important. Life insurance can offer protection for your family, and choosing the right policy can be extremely beneficial. Here are a few questions to ask yourself to help you decide if you need life insurance.

Do you owe money?

Being a student can be expensive. Years of paying fees, buying textbooks, paying rent and bills, usually on a small paycheck can leave you in a huge amount of debt. You may have a student loan to pay off. Perhaps you took out a personal loan, or have racked up some credit card debts.

Now think about what would happen to these debts if you were no longer here. Usually, your debts would be passed onto your family, leaving them to pay them off. Buying life insurance can save your family from these debts by providing a lump sum payout when you die.

Do you have a mortgage?

Getting a mortgage is a big responsibility. Not only will you be responsible for paying back your home loan, you will also be responsible for the upkeep and costs related to having your own home. Again, if you were no longer here, would your family be able to cope with the costs of paying off your mortgage? The right life insurance policy can help to cover things such as your mortgage.

Do you have children?

Protecting your child’s future is something that becomes paramount when you become a parent. This means providing for them emotionally as well as financially. Life insurance can help to provide financial assistance to your family to help cover the costs of day-to-day living while they adjust to your loss.

Do you have any other dependents?

Apart from children, you may have a sick or disabled sibling or parent you have to take care of. Dependents rely on you to provide for them, and in your absence, life insurance can help to cover them financially.

Do you have group life insurance?

Some employers allow you to opt in for group life insurance. If you have group life insurance, be sure to check the level of cover it offers. Some group life insurance policies only offer minimal cover, so you may have to invest in further cover from another insurance provider.

Do you want to protect your income?

Now that you are finally getting a good income, it can be a good idea to protect it. Income protection insurance offers a substitute paycheck if you become injured or too ill to work. Benefits will usually be up to 75% of your regular income, and provide a regular payment to help cover bills, mortgage and day-to-day living costs.

Find out how much coverage you need

Once you have decided that you need life insurance, you need to work out how much you need. Use an online calculator to work out the suitable amount of cover, and then shop around to get the best policy by using a comparison site. This way you’ll be sure to find the best insurance provider for your needs.

LaTisha Styles is a motivational speaker, millennial money expert, and spokesperson specializing in simple finance for millennials. LaTisha is the producer and host of Young Finances TV, a weekly series featuring funny, insightful videos on the basics of personal finance. LaTisha has been quoted in Forbes and Mainstreet, featured in The Economist, and mentioned in US News as a top personal finance expert to follow on Twitter. You can follow LaTisha on Twitter for daily millennial money tips to budget, invest and achieve success!

  • Dominique Brown

    I think you need life insurance if you have someone dependent on your income. I’ve had life insurance since I got married 4 years ago.

    • LaTisha Styles

      That is a very good reason to have life insurance!

  • Linda Manns

    This is a very informative article. I have been thinking about life insurance lately and this has really helped with my decision

    • LaTisha Styles

      Glad it could help!

  • Jenn E

    Great informative post! I have never even thought about this, so this was definitely eye opening!

    • LaTisha Styles

      That’s the goal! I’m glad it gave you something to think about.

  • LaTisha Styles


  • LaTisha Styles

    Yes, children make life insurance a definite need.

  • Alyssa

    I think about this all the time, I don’t have kids but I do have my parents as cosigners on some of my student loans. God forbid anything ever happens to me I would hate for them to be stuck with my debt. Thank you for all of the great information!

    • LaTisha Styles

      Yes! That is very important to consider. Cosigners could be left with the bill if you pass. Life insurance would certainly help with that.

  • Kyla Patton

    Thanks for posting this. My husband and I have been trying to decide on this issue recently.

  • Thomas S. Moore

    For me its a little different as I am married with a 12 and a one on the way. Life insurance is a definite for us though I wouldn’t say the same for everyone.

  • Gillian @ Money After Graduation

    Great post. As someone in my 20’s, I was unsure about life insurance for awhile. This is an easy checklist to tell if you should get some insurance!