If you are 21 years old, you may or may not need to purchase life insurance. Life insurance for a 21 year old is affordable and easy to qualify for if you are healthy. If you have no dependents or no debt that would have to be paid off by another person when you die, then you probably don’t need life insurance.
You will, however, likely need life insurance in the future. Buying life insurance now, when you are young and healthy, may be a wise financial decision.
In this article, we will offer some background on life insurance for a 21 year old, the underwriting process for life insurance for 21 year old, and if you can get approved for life insurance at 21 years old.
Many 21-year-olds are just getting out of college and have college debt that their parents or loved ones have co-signed for the debt on their college loans. If you a student dies before college loans are paid, your parents, grandparents, or cosigner on your student loan will be responsible for paying off your college loans.
Your college loan cosigners have given you a significant financial gift to qualify for an education that may have otherwise not occurred without them assuming the risk of having to pay your college debt upon your death. It is the responsible thing to do to make sure that, if you die unexpectedly, your college loan cosigners will be paid a life insurance settlement to pay off your college loan debt obligation.
I’M YOUNG AND HEALTHY AND DON’T NEED LIFE INSURANCE FOR A 21 YEAR OLD.
You are young today, you’re healthy today, but your youth and health today does not guarantee the same results tomorrow. Tomorrow you will be older by a day, and your health can change without notice.
We know many 21-year-olds diagnosed with severe digestive orders, back issues, or health problems because of genetics or accidents.
Always be thankful for your youth and health. As your parents and grandparents will tell you, life passes in the “blink of an eye”, and your health is the greatest gift you will ever have.
I’M GOING TO PURCHASE LIFE INSURANCE; WHAT SHOULD I GET?
21-year-olds are just starting their careers, have little free money, and want to have fun with the money they have and experience the adventures ahead of them. You have many affordable choices for life insurance.
We are experts in helping you understand your life insurance eligibility options and helping you fit it in your budget.
WHAT ARE AFFORDABLE LIFE INSURANCE FOR A 21 YEAR OLD OPTIONS?
Work life insurance – many salaried employees are offered one year of their income and life insurance protection as part of their employee benefit plan. This costs the employee no money and is a welcome benefit for most workers.
However, you don’t own your employer’s life insurance company, and when you leave your employer (or they tell you to leave), your life insurance coverage goes away.
Accidental death life insurance – accidental death is the leading cause of fatalities for 21-year-olds. If you think you will never die because of an accident, you could be wrong…that’s why they call them accidents.
Accidental death coverage is very affordable life insurance for a 21 year old.
Term life insurance – term life insurance will guarantee your life insurance insurability from 1 to 30 years.
Annually renewable term (ART) policies are available and very affordable. The disadvantage of an ART is that your premiums go up every year as you grow older. We recommend you compare the costs and weigh the benefits of the 10-year or 20-year term policy before buying an annually renewable term policy.
If you think you will be married or have more financial obligations in the next 10 years, then a 10-year policy may be an ideal solution. It will lock in your life insurance rates for 10 years, and you can always purchase additional life insurance earlier, if necessary, and drop the 10-year life insurance policy (if appropriate).
Term insurance is the most cost-effective and budget-friendly life insurance solution for a 21-year-old living on a tight budget.
Universal life and whole life – although these options are more expensive than term life, they provide lifelong life insurance coverage. Because many 21-year-olds are still living on a tight budget, our general recommendation is to look at term life insurance coverage.
A universal life or whole life policy recommendation would require specific knowledge of future personal financial needs, health concerns, or business obligations.
BURIAL POLICIES OR FINAL EXPENSE POLICIES
These are typically a $10,000-$15,000 life insurance policy that will guarantee lifelong coverage. They are intended to pay for funeral costs and other expenses when you die (medical, financial, etc.). At 21 years of age, these final expense policies are affordable.
If it is important for you to have this taken care of, we can help you with the final expense or burial policy. Purchasing a term life policy can accomplish the same thing for a specified period.
I DON’T THINK I NEED LIFE INSURANCE FOR A 21 YEAR OLD RIGHT NOW.
If you have no debt, are not married, or have nobody that you are financially responsible for, you may not need life insurance at this time.
I DON’T NEED LIFE INSURANCE RIGHT NOW, BUT SHOULD I GET IT ANYWAY?
If you are in a relationship and expect to get married in the following years, purchasing a life insurance policy when you’re 21 years old will guarantee you the most affordable coverage you’ll ever get in your life. As you grow older, your life insurance premiums will increase every year.
Your life insurance premiums will increase if you are diagnosed with an illness or are involved in an accident resulting in medical complications.
If you have a family history of genetic diseases or illnesses, it is best to purchase life insurance before you are diagnosed with the same diseases or illnesses. After a disease diagnosis occurs, your life insurance premiums may increase dramatically.
Here are sample rates for life insurance for a 21 year old (at the time this article was written):
21 – female – 10 year – $100,000 – $6.88
21 – male – 10 year – $100,000 – $7.14
21 – female – 20 year – $100,000 – $8.23
21 – male – 20 year – $100,000 – $9.10
21 – female – 30 year – $100,000 – $10.06
21 – male – 30 year – $100,000 – $11.38
We are experts in helping 21-year-olds assess their life insurance needs and eligibility. Call us and we will help you determine your life insurance needs and eligibility options.
If you need life insurance for a 21 year old, call us to help you understand your 21 year old life insurance eligibility options.
At Life Wealth Win, we specialize in healthy to high-risk life insurance cases. We can help you understand your life insurance options at any age.
We work with clients across the nation to get the best life insurance rates possible. If need life insurance for a 21 year old, we can help you get the best life insurance rates.