Life Insurance At 19: Is It Possible To Get Covered?

Life insurance is a financial product that provides financial security to your loved ones in the event of your death. While it's not uncommon for young adults to assume they don't need life insurance, it can be a good idea to get it as early as 19. This is because life insurance premiums are cheaper when you buy your policy at a younger age. If you're in good health, you'll be able to lock in lower rates, and you'll still be covered if you develop a serious illness later in life.

Life insurance for young people: pros and cons

There are several reasons why a young person may want to consider taking out a life insurance policy. While it is true that life insurance is often thought of as something that older people need, there are benefits to taking out a policy at a younger age.

Pros

The most obvious reason to take out life insurance is to protect loved ones financially in the event of your death. If you have a spouse or children who rely on your income, they may depend on insurance payouts to survive. Life insurance can also be used to cover final expenses, such as funeral costs, and other debts, so they don't fall on loved ones.

Life insurance premiums are cheaper when you buy your policy at a younger age. Good health also translates to lower insurance costs and ensures you will still have coverage if you develop a serious illness later in life.

Permanent life insurance policies can serve as tax-advantaged savings vehicles through the life of the policy. Your policy's cash value gives you a way to build savings on top of insurance protection. The benefits of compounding can mean significant value later in life. A cash value that builds for decades can amount to hundreds of thousands of dollars in future tax-free income.

Cons

Young adults may have trouble keeping up with premiums. Premiums for permanent coverage are substantially higher than those for term life at any age. For young adults just starting their careers or families, it may be difficult to maintain those higher payments.

You may have to pay premiums for a longer amount of time. Most policies are designed for premiums to be paid throughout your entire life (or to an advanced age, such as 70). While buying at a younger age means you will pay lower premiums, it also means you must make more years of payments.

You may not initially need insurance coverage. You might buy insurance at a young age and later reap little benefit. If you stay single and do not care about leaving a financial legacy, you could be spending money on something you don't use.

Premium payments could have been better used elsewhere. There is an opportunity cost involved in paying costly insurance premiums. You could have used that money elsewhere, such as to invest in the stock market and earn a better return.

While there are arguments for and against taking out life insurance as a young person, ultimately, the decision will depend on an individual's personal and financial circumstances.

Life insurance for 19-year-olds: what are the options?

Life insurance is a contract between an individual and an insurance company. The insurance company agrees to pay a death benefit to the individual's beneficiaries (people chosen by the individual) if they pass away. The death benefit is a set sum of tax-free money that can be used for any purpose.

There are two main types of life insurance: term life insurance and permanent life insurance. Term life insurance protects the individual for a certain period of time, called the term, and has fixed premiums and a guaranteed death benefit. Permanent life insurance, on the other hand, lasts the entire life of the individual and provides more protection but at a much higher cost.

While there is no minimum age for life insurance, you must be 18 to take out an insurance policy. So, as a 19-year-old, you can definitely start thinking about your options. Here are some things to consider:

Term life insurance

Term life insurance is often the cheapest option for young adults. It provides limited coverage and doesn't have additional features like cash value. If you are looking for a basic form of protection, this may be a good choice. However, keep in mind that if you outlive the policy term, it expires, and you and your beneficiaries receive nothing.

Permanent life insurance

Permanent life insurance offers more comprehensive coverage and lasts your entire life. The most common type is whole life insurance, which has fixed premiums and a guaranteed death benefit. Whole life insurance also builds cash value, which acts as a savings account that you can borrow from or withdraw from while you are still alive. However, permanent life insurance premiums can be much higher than those for term life insurance.

Factors to consider

When deciding on a life insurance policy, it is important to consider your financial goals, risk tolerance, and family's financial needs. Ask yourself if you have any dependents or large debts that your loved ones would need to pay off if something happened to you. Additionally, consider the cost of life insurance now versus what it will be in the future. Buying life insurance at a younger age can often lock in lower rates.

Available options

As a 19-year-old, you have several options for life insurance. You can add a child term life rider to your parent's life insurance plan, providing you with additional coverage. Alternatively, you can opt for a whole life insurance plan, which will have lower premiums compared to an older applicant. Finally, you can choose a term insurance plan, which is typically the most affordable way to get the coverage you need.

Why buy life insurance at 19?

Life insurance is a financial product that provides financial security to anyone who depends on your income in the event of your death. While you may not need life insurance at 19, there are several reasons why buying it at a young age can be beneficial.

Firstly, the cost of life insurance is significantly lower when you are younger. As you get older, life insurance becomes more expensive because you are considered a higher risk to the insurance provider. By locking in a low rate at 19, you can save money in the long run. This is especially beneficial if you plan on having children or taking on a mortgage in the future, as your dependents will rely on your income.

Secondly, buying life insurance at 19 can provide peace of mind for both you and your family. In the unfortunate event of your premature death, your loved ones won't have to worry about covering final expenses and other debts. This is particularly relevant if you have student loans, as your family would be responsible for those debts if something happened to you.

Thirdly, some types of life insurance, such as permanent life insurance, can serve as a savings vehicle. The policy's cash value grows over time, tax-deferred, and can be used for various purposes, such as paying off debt or funding retirement.

Finally, purchasing life insurance at a young age ensures that you are covered in case you develop health problems later in life. As you get older, you may be at a higher risk of developing health issues, which could make it more difficult and expensive to qualify for a plan.

In summary, while the decision to buy life insurance depends on your personal and financial circumstances, buying it at 19 can offer cost benefits, provide financial protection for your loved ones, and give you the security of knowing you'll leave something behind for your family.

How to get life insurance at 19

Life insurance is a way to provide financial security to anyone who depends on your income in the event of your death. It can be a good idea to get life insurance when you're young, as it's cheaper to buy life insurance at a younger age. The older you get, the more expensive life insurance becomes. If you wait too long to purchase life insurance, it can be harder to get the policy approved by an insurance underwriter.

There are two main types of life insurance: term life insurance and permanent life insurance. Term life insurance protects you for a certain period of time, called the term, and has fixed premiums and a guaranteed death benefit. Permanent life insurance lasts your entire life and provides more protection than term life, but the premiums can be much higher.

The amount of life insurance you need depends on your financial goals, your risk tolerance, and your family's financial needs. You should consider any debts or obligations you have, such as student loans or a mortgage, and ensure that your loved ones will have the money they need to pay off these bills if something happens to you.

Where to Get Life Insurance Quotes

To get a life insurance quote, you will need to fill out an application online or with an agent. You will need to disclose information such as your height, weight, age, gender, health history, and other important details. You may also need to complete a medical exam and blood test to get a final determination of your premiums.

Choosing a Beneficiary

When you purchase a life insurance policy, you need to select a beneficiary, who will receive the proceeds from your policy when you pass away. You can select anyone as your beneficiary, but most people appoint their spouse, child, parent, or sibling. You can also appoint more than one beneficiary and decide how the death benefit will be divided.

Life insurance for 19-year-olds: how much does it cost?

The cost of life insurance for a 19-year-old will depend on several factors, including the type of policy, the coverage amount, and the length of the term. Generally, the younger you are, the less expensive life insurance will be. This is because younger people are less likely to have health problems and are considered lower risk by insurers.

Term Life Insurance

Term life insurance is the most affordable option, as it only covers a set number of years and does not build cash value. For a 19-year-old, the cost of a term life insurance policy will depend on the length of the term and the coverage amount. For example, a 20-year, $250,000 term life insurance policy for a healthy 20 to 40-year-old typically costs between $24 and $29 per month. A 10-year, $250,000 term life insurance policy for the same age group may cost slightly less.

Whole Life Insurance

Whole life insurance is more expensive than term life insurance because it lasts a lifetime and includes a cash value component. A whole life insurance policy for a 19-year-old will also depend on the coverage amount and other factors. As an example, a $250,000 whole life insurance policy for a healthy 30-year-old costs an average of $144 a year.

Factors Affecting Cost

In addition to age, gender, and type of policy, other factors can influence the cost of life insurance for a 19-year-old. These include:

• Health: Pre-existing conditions, height, weight, and medical history can affect premiums.
• Tobacco use: Smokers typically pay higher rates due to associated health risks.
• Hobbies: Risky activities like skydiving can increase premiums.
• Criminal history: A DUI or other convictions may affect rates or disqualify you from coverage.
• Occupation: Hazardous or high-risk jobs can result in higher premiums.
• Financial history: Bankruptcies or long periods of unemployment may impact rates.

When to Buy Life Insurance

While the cost of life insurance is an important consideration, it's also essential to think about when you need it. Life insurance is particularly important if you have children, a partner, or family members who rely on your income. Buying life insurance at a young age can lock in lower rates and provide peace of mind for the future.

Frequently asked questions