Yes, It’s Awkward, But Here’s What You Should Know About Life Insurance

We get it — thinking about your death as a young adult is uncomfortable. But having life insurance will help provide your loved ones financial protection, and Legal & General America offers easy and affordable coverage to help.


If you’re in your 20s or 30s, it’s possible that you’ve heard or read about life insurance and maybe even have a basic idea of what it is. But you also may be thinking, I’m young, I don’t need to worry about this right now.Or maybe instead you’re thinking, I don’t make enough money or, My partner’s the breadwinner, so they’re the one who needs life insurance. Not me. Here’s the thing: If you have financial obligations like rent or mortgage, or you have kids or other family members who depend on you, protecting yourself financially could make a huge difference for your loved ones if something bad were to happen, no matter how old you are or how impressive your salary is. That’s where life insurance comes in.

Let’s start with the basics: What is life insurance?

The simplest and most affordable type of life insurance to consider when you’re young and in good health is known as term life insurance. Term life insurance is a contract structured to cover you financially for a specific period of time or a “term.” This term could be anywhere from 10 to 40 years and could cover things like your mortgage and replace your income if you were to pass away during that term. 

When you sign up for a term life insurance policy, you designate a beneficiary (or multiple beneficiaries) who would be paid out, usually tax free, upon your death during the term.

Couple hugging in front of a house

Yes, you have to pay for term life insurance (through regular payments during the length of your term). But it’s not as expensive as you might think!

According to a recent study, more than half of Americans overestimate its cost by as much as three times. Let’s put it this way, your yearly cost may be the same (or maybe even less) than you’d shell out for a fancy dinner!

However, the cost of your coverage does depend on a couple things. The first is how long of a term you choose.

If you choose a shorter term (like 10 or 15 years), your recurring payments will be lower. 

The second is your medical history. Insurance companies need to take this into consideration to determine how likely you are to actually die from health concerns during your term.

Doctor taking someone's blood pressure

If you suffer from a chronic condition like high blood pressure or cholesterol, you will likely pay higher premiums. If you are a smoker, you will likely pay higher premiums. 

And the older (and theoretically closer to death) you are, the higher your premiums will be. This is why opting for life insurance when you are young and well makes sense!

The amount of coverage you get also determines how much you pay. How do you decide on the level of coverage to get?

The general rule of thumb is to multiply your annual, pretax salary by 10. So if you make $80,000 per year, you could consider purchasing around $800,000 worth of term life insurance. You can also use an online life insurance calculator to calculate your need based on a variety of factors like your debts, childcare costs, and personal assets. Just know that the calculator will provide you with a general estimate and there may be additional items to consider based on your individual circumstances. 

OK, but what happens when the term you select is over?

OK, but what happens when the term you select is over?

You can choose to extend it at the same coverage level or you can change it based on how your financial obligations have shifted. For example, you may have paid off your mortgage or put your kids through college when your term ends, so you might not need as much coverage anymore. 

You can also go the route of adding a rider to your base term life insurance policy to avoid having to continue paying for higher coverage when you no longer need it later in life. Learn more about how riders work, and the different types available, here.

Now that you’ve had a little term life insurance 101…are you ready to explore your options? Here’s how you get started.

Simply go online to and select “Get Your Free Quote Now.” You’ll then fill out a quick form with some basic information about yourself and your coverage needs. You can also call or email customer service for some more personalized help.

Embrace the awkwardness so you can protect your loved ones financially. Learn more about the affordable, accessible term life insurance policies that Legal & General America has to offer. Get your free quote now!

Coverage is underwritten by Banner Life Insurance Company and William Penn Life Insurance Company of New York.

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