Understanding Life Insurance Needs at 25 Years Old
When Georgia’s mom told her that the child rider she had on her was expiring this year, she started thinking about her own life insurance needs.
At 25 years old, as a non-smoker who just started her first adult job, Georgia pondered the next steps in securing my financial future.
But she had no idea what a life insurance policy would cost.
Given Georgia’s circumstances, it's fantastic that she’s considering life insurance at a young age. Being young and healthy generally qualifies individuals for lower premiums.
However, life insurance costs depend on several factors, such as the type of policy, coverage amount, and any additional riders she might choose.
Since Georgia is new to her job and living independently, a term life insurance policy could be suitable and cost-effective. Term life insurance provides coverage for a specified period, typically 10, 20, or 30 years, and tends to have lower premiums than permanent life insurance.
Before we dig in, we’re CC & Associates, a financial service provider helping women and families prepare for their futures and organize their finances so they can make big purchases, save for retirement, and stop worrying about money.
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Now, let’s get into it.
Here are some rough estimates for term life insurance policies:
20-Year Term, $500,000 Coverage: Approximately $20.70 per month, covering her until age 45.
30-Year Term, $250,000 Coverage: Around $17 per month, providing coverage until age 55.
If Georgia’s considering a more permanent solution that locks in her premium for life, there are other options:
Term 100, $100,000 Coverage: Roughly $42 per month.
20-Pay Permanent, $100,000 Coverage: About $71.64 per month, with the policy paid up in 20 years.
These approximate figures can vary based on individual factors such as health, lifestyle, and specific underwriting criteria.
Since Georgia’s mom had a child rider on her, it might be worthwhile to see if this rider can be converted into a new policy without requiring medical underwriting. This could offer her a seamless transition into a new life insurance policy with favorable terms.
She should consider conducting a needs analysis to ensure Georgia chooses the right policy that balances coverage and affordability. This assessment can help Georgia determine the coverage she requires based on her current financial situation and future goals. Reach out to CC&Associates, and we can do one for you!
Securing life insurance at a young age is a smart decision that can provide financial protection and peace of mind. The exact amount she’ll pay will depend on the policy Georgia selects and her circumstances. However, with her non-smoker status and good health, Georgia is in a great position to obtain competitive rates.
Reach out today for personalized advice and accurate quotes tailored to your situation.
I hope this helps!
CC&Associates