Darcy Bergen is the owner of Bergen Financial Group and has experience working with clients who have various financial concerns. He has over 20 years of experience as a financial planner helping his clients plan for retirement and other financial needs. Darcy Bergen often gets questions regarding the best time to buy life insurance. While there is no right answer, it all depends on the needs of the individual. Here are some reasons why you should consider life insurance in your 20s.
You Have Children
While many people in their twenties are still in college, grad school, or establishing their career, there are plenty of people in their 20s who have children. If you fall under this category, Darcy Bergen suggests you look into a life insurance policy. No parent wants to imagine leaving their child unprotected in the event of their passing. Darcy Bergen explains that parents in their 20s who take out a 20-year term life insurance plan when their child is born or a few years old will leave them with protection until they’re way in their 20s. Although many young people in their 20s think life insurance policies are costly, the younger and healthier the parent is, the more affordable policy they can get to help protect their children.
You Have Debts
If you’re in your 20s, chances are you have already accumulated a few debts along the way. On average, college students graduate with an average of $29,800 in debt. Although student loans are the most prevalent with people in their 20s, young adults also have car loans, credit card debt, and even personal loans. Those people in their 20s think they have a long time to pay off their debts; however, the unthinkable can change this. Imagine leaving behind debts, and your family has to foot the bill. Depending on the policy, someone in their 20s who is healthy could apply for a 20-year term policy with a $200,000 death benefit for more. Purchasing life insurance in our 20s can help to financially protect your family if you have a lot of debts.
You Get Married
If someone is married in their 20s or at any age, Darcy Bergen explains getting a life insurance policy can help to ensure your spouse is protected. While more people are getting married in their 30s, the average marriage age in the United States is 27.8 for women and 29.8 for men. Married couples often have many expenses together, such as mortgages, car loans, credit cards, and other debts. When a spouse passes away, there’s no way of telling what the economic impact will be on the spouse.
For more of Darcy Bergen’s financial tips on life insurance and other concerns, check out darcybergen.co.