5 Reasons Why Term Life Insurance Plans are More Suitable for Young Professionals

5 Reasons Why Term Life Insurance Plans are More Suitable for Young Professionals

If you’re reading this and you are a young professional, then the last thing that’s probably on your mind is life insurance. You are thinking about how you can advance in your career, how you can have a great time in your young years, and when you’re going to be starting that family of your dreams. Why would you need to think about life insurance when you’re this young and healthy?

Well, it turns out that the best time to think about life insurance options is when you’re young and healthy. Look, you’re inevitably going to get older and you’re going to have to start to think about how you can protect your financial dependents should you pass away suddenly. That’s exactly what life insurance is all about. And when you’re young, you can get a life insurance policy that’s so much more affordable than if you were older.

Term life insurance vs. permanent insurance

However, there are two main types of life insurance – term life insurance and permanent insurance. There are big differences between the two. Term life insurance is going to be the easiest for you to understand and it will have the lowest prices. Permanent insurance is going to cost more than term insurance, but is going to come with some more additional benefits. It’s also going to be a whole lot more tough to understand than term insurance.

It’s recommended that young people buy into term life insurance plans for all of the reasons laid out down below.

1. It’s A Lot Less Expensive Than the Alternatives

Right, so we can start off with the best reason for why young people should buy into a term life insurance policy – the cost. Young professionals are stretched for money at every term. You might not have a job yet that pays a whole lot of money. You might have college tuition and credit card debts that are weighing you down and preventing you from having financial security.

A term life insurance policy is going to be way less expensive than other insurance options. That’s because you are only paying for a predetermined time. Insurance companies offer lower prices because the hopes are that you aren’t going to pass away within that time period and your financial dependents won’t claim payout. However, if you have a time period that’s reasonable for your life expectancy, then this is a great option.

2. Term Life Insurance Is a Whole Lot More Flexible

When you get a term life insurance policy, you are going to have so many more options than with permanent insurance policies. You can have your insurance last for a period of one year and renew it on an annual basis, for example. There are also policies that allow you to have coverage for 5, 10, 15, and 30 years.

It’s best to have the time coverage go for the time period when you are facing financial strain. For example, you could have a 5-year term life insurance policy for those 5 years when your child is in college and you’re paying college tuition. This means that should anything happen during those 5 years; your child is covered.

3. It’s One of The Best Choices That Young Families Can Make

As we mentioned before, term life insurance is going to be a whole lot less expensive than permanent insurance options. This is because they only cover a certain period of time and insurance companies hope you’ll never claim. This makes term life insurance one of the best options for young families who are just starting out. As you probably know, it’s incredible tough for young families to get out of debt or to take on too many expenses at one time. You might already have children to take care of, a mortgage that you are just now starting to pay off, and those college tuition debts to take care of.

That’s exactly why a term life insurance plan is the best option for young professionals and their families. The costs are going to be low, so this won’t put any more financial stress on your budget.

Young businesswoman looking for term life insurance info

4. It’s Simple and Easy

Of course, one of the best reasons why every young professional should look into a term life insurance plan is the fact that they are super simple and easy to understand. You won’t have to take tons of time trying to figure out which insurance plan works the best for you because you’ll be able to tell right away. There are only three big decisions that you need to make in this process – how much coverage you want, the length of your term, and the preferred company to work through. You can easily do some searches online to find great life insurance companies to work through.

And once you have a life insurance policy, all you need to do is pay the premium and you have the insurance until the term runs out. Should you want to extend your term, just speak with your insurance company and that process will be super simple, as well.

5. There’s Low Claim Rejection with Term Life Insurance Plans

If you have your policy for 10 years or longer, there is a much lower rate of claim rejection. This means that your insurance company is more likely to pay out your claim to your financial dependents. With term life insurance plans, the rate of claim rejection is seriously low. This means that you’re not going to have to worry about your financial dependents not getting your claim for some reason or another. For young professionals with families, this is something to seriously think about.


There you have it! Life insurance isn’t something that you’ve probably put much thought into. However, every single young professional has got to start thinking about which term life insurance option to go with. The sooner you get this handled, the sooner you can stop worrying about what might happen to your financial dependents if you pass away. Plus, this is another step for you becoming more financially stable as a young professional.

Ivan Widjaya

Ivan Widjaya is the Owner/Editor of Noobpreneur.com, as well as several other blogs. He is a business blogger, web publisher and content marketer for SMEs.