Life Insurance for Younger Clients

Clients in their 20s and 30s should be investing in life insurance to utilize some amazing benefits and lock-in lower rates.

Insurance agents should be helping clients in their 20s and 30s find life insurance policies. Sound crazy? By applying later in life, policyholders are losing out on some amazing benefits that only come from applying young.

Why don’t young people invest?

There are several reasons young buyers don’t invest in life insurance.

One of the most common concerns keeping young people from investing in life insurance is student loan debt. Researchers from the New York Federal Reserve claim that “Student loan debt is the only form of consumer debt that has grown since the peak of consumer debt in 2008. Balances of student loans have eclipsed both auto loans and credit cards, making student loan debt the largest form of consumer debt outside of mortgages,” In the same article, the researchers note that 70 percent of current college seniors will graduate with student loan debt totaling approximately $30,000 per borrower.

Another common concern is that no one will benefit from life insurance if the policyholder has no dependents, yet. With Americans getting married and having children later in life, it makes sense why they think they have no beneficiaries in their 20s and early 30s. In 2019, the average individual got married between ages 25 and 30, significantly later in life than in generations past. In 2018, the average age of first-time parents was 26 for mothers and 31 for fathers, up from 21 and 27 in 1972.

Why should young clients buy life insurance?

Many individuals hit peak health in young adulthood. They often have yet to develop pre-existing conditions or medical factors that could increase monthly premium rates, meaning young adults can potentially lock-in low rates that will help them pay less over the life of the policy. Policyholders may also be eligible to bundle insurance policies through the same company, which often results in extra discounts.

While federal loans include death discharges that null the loans after the borrower’s passing, most private loans don’t. This means that if a client has student loan debt, a mortgage, new car financing, or credit card debt, those costs would likely become the responsibility of their loved ones if they were to pass on. Life insurance provides coverage for these costs, so a policyholder’s family never has to worry about inherited debts.

Another benefit that comes with permanent policies is certain living benefits or special riders that policyholders can borrow against as the policy’s cash value grows. By buying a life insurance policy as a young adult, you are increasing the amount of time your policy is accruing cash value, giving you more money to borrow from later to pay for a child’s education or to replace your income during retirement. These cash values also help policyholders build credit that can help them take out loans or get a mortgage.

How can my clients start?

As with any policy, a client’s first step is to get educated. Agents can help provide vital information on what policies may fit a young adult’s lifestyle and what companies provide the best rates. Agents should also help their clients understand how shockingly affordable life insurance plans are.

Most young adults see life insurance as a luxury expense or an unnecessary bill, when, a small premium each month could protect the policyholder and their loved ones for years to come. With living benefits and locked-in low rates, young adults should start learning about the many benefits life insurance has to offer, today!


We hope this information on assisting young adults invest in life insurance is helpful to you.

Empower Brokerage is dedicated to helping you educate your clients on the insurance they need and staying on top of their health. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans. We want you to be successful. Give us a call if you have any questions 888-539-1633.

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