Life seemed simpler when you were a kid. You still had big choices to make:
- Spongebob or Animaniacs?
- XBox or Wii?
- Buffy or Dawson's Creek?
But now that you're in your 20s, the choices are harder and the stakes are higher, especially when it comes to money. If your New Year's Resolution is to finally get your finances in order, I can help. There's one key move you can make now that sets you up for financial success later.
A Financial Game-Changer
Believe it or not, your 20s are the best time to buy life insurance. I know what you're thinking...life insurance is for older people or people with kids, right?
Wrong. It doesn't matter whether you're single, dating, engaged, or married. Life insurance has great benefits that don't have anything to do with age or even kids:
- It pays off your debt if you die unexpectedly. Student debt, credit card bills, that car loan your parents co-signed for you...do they have the money to pay these things off? If not, a life insurance policy does it for them.
- It can help pay for your future healthcare. Old age is a long way off, but if you think healthcare is expensive now, try adding 20 or 30 years of inflation to the bill. Policy add-ons called riders can help you pay for care when you're older.
- If you get really sick and need cash to pay for medical treatments, some forms of life insurance let you borrow against the policy.
- Some forms of life insurance accumulate cash value that you can use later to start a business or put a down payment on a house.
Why Buy Now?
Right now, you're in the perfect position to score big with life insurance:
- You're young.
- You're healthy.
- Your rates will never be lower than they are right now.
If you wait until you're married and have kids, you're taking a big chance that rates won't increase, or that you won't develop any health problems between now and then that could increase your rates.
When you were a kid, it might have been hard to decide between Fruitopia and Snapple—but it's a no-brainer to protect your financial future with life insurance.