Buying life insurance often isn’t a priority until individuals grow older and realize they will not be around to take care of their family forever. However, it is generally recommended that you purchase life insurance before you ever need it. 

There are a few reasons for this. Life insurance is generally cheaper for younger people. The less likely you are to file a claim, the less you may pay for life insurance. However, there are certain circumstances where purchasing life insurance too early can simply be a waste of money. 

What is the Purpose of Life Insurance? 
Life insurance is primarily used to protect your family members after you pass away. This insurance can provide compensation to your family for debts you have left behind. If you have no debts, or if you do not contribute a large amount to the household income, you may not want to purchase a life insurance policy yet. 

However, many people obtain debt early in their 20s. The main debt for 20-somethings is typically student loan debt. If you go to a university, you will likely have to take a loan in order to pay for classes. Student loans are notoriously expensive and can last until well after you’ve graduated. If you still have this debt when you pass away, the responsibility for the expenses could fall on your loved ones. 

Life insurance can help pay for these debts so that your loved ones don’t have to face the sudden expense alone. Although young people are expected to live a long time before the life insurance policy is even necessary, it is still important to have it in place if you have enough debt to cause anxiety for your family members. 

This also applies to the breadwinners of a family. For example, some individuals in their twenties serve as caretakers for members of their family both young and old. If their source of income vanishes, it could leave those previously cared for in a precarious position, including financially. Life insurance can help compensate for a lack of income due to the sudden loss of a breadwinner. It can also help with shared debts, such as shared mortgages. 

If you are unsure about when or how to purchase a life insurance policy, be sure to speak with an insurance agent. The decision about your life insurance policy should be informed and discussed with your loved ones as well as an insurance professional.