In your 20s, life is busy, exciting, and full of plans. There are careers to build, places to see, people to meet, and goals to achieve. Life insurance rarely makes the list of top priorities, as it can seem unnecessary when you’re young, healthy, and just getting started. But that is exactly why your 20s are one of the smartest times to think about it.
Thinking about life insurance at an early age isn’t about expecting the worst. It’s about protecting your future, locking in affordability, and creating a financial safety net that grows with you as your life changes.
A term policy will carry you through
Term life insurance policies are valid for a certain period of time, and are usually purchased for 10- or 20-years. They generally carry a lower premium as compared with waiting until your 30s or later. This helps keep costs reasonable. You can start with a smaller, affordable plan now, then, as life changes, what with marriage, kids, and a mortgage, you can convert to a permanent plan. This provides long-term flexibility with minimal cost while you’re young.
Permanent life insurance can provide a much-needed cushion
Permanent, or “cash-value” insurance policies do not have a set term, and are purchased for an indefinite period of time. With this type of policy, money can be taken out of the plan as a loan or if the plan is surrendered. This can be very helpful as life’s unexpected surprises arise. The three types of permanent insurance are whole, universal and variable.
Only cover what you actually need
Us experienced brokers at Lane’s only want you to buy the insurance you actually need. You may not have dependents yet, but you might have debt (student loans, car loans, credit cards), or you may want to make sure final expenses are covered so family members aren’t left with that burden.
We can help you properly evaluate your current and near-term situation. If you’re renting, maybe driving or studying, early adulthood often means changing jobs, possibly a modest income, and likely fewer financial obligations. A modest term policy may suffice. For example:
- If you have outstanding debts (car loan, student loan) or a cosigner (parents/co-signer loans), a smaller term policy can help protect them if something unexpected happens.
- If you don’t yet own a home or have dependants, you may not need a large permanent policy, but you might want to lock in insurability (good health equals low premiums) while you’re young.
Consider estate implications
Mortgage debt is the largest financial obligation many people have.
Even if you’re not a homeowner yet, it’s wise to think ahead. Buying life insurance early can avoid leaving that burden to survivors.
- Book a needs-assessment with us. Lane’s brokers work for you (not insurers) and find competitive rates while matching actual needs.
- Depending on your circumstances, we may recommend a 10- or 20-year term policy, which is affordable, flexible, and simple, perfect for those with limited obligations but wanting protection.
- We will ensure convertibility. Our policies will convert to permanent life insurance later. Keep your options open as your life evolves.
- We work to balance cost vs benefit: coverage to pay off debts, funeral costs, or support dependants.
- As your job, health, debts or family status change, you can review and adjust with our guidance to remain appropriately insured without overpaying.
Count on Lane’s for the best products in the Alberta insurance industry
Lane’s Insurance is a leading Alberta-based brokerage, providing a comprehensive range of competitively priced insurance products offered through the province’s top carriers.
Beyond life insurance, you can also count on Lane’s for:
- Auto insurance and motorcycle insurance
- Home insurance and condo insurance
- Tenant insurance for renters
- Travel insurance for out-of-province travellers
- …and much more!
To learn more, please contact a Lane’s Insurance customer service representative.
