Why Young Families Shouldn’t Wait to Consider Life Insurance

September 22, 2025

For many people, life insurance only becomes top of mind after a big milestone—marriage, buying a home, or welcoming a child. These life events often bring new financial responsibilities, from mortgage payments to childcare, and with them, the realization that protecting your family’s future is essential.

Life insurance can be one of the cornerstones of a strong financial plan. It provides a safety net, offering peace of mind that your loved ones could be financially supported if the unexpected were to happen.

The good news? Getting covered has become simpler than ever.

Why Term Life Insurance Makes Sense for Families

For busy young families, term life insurance often strikes the right balance between affordability and protection. Here’s why it can be a good fit:

●     Simple coverage: Term policies provide protection for a set period of time (10, 20, or 30 years) with fixed premiums. That means your costs stay the same each month for the entire term.

●     Flexible amounts: Coverage can range from modest protection to millions of dollars, allowing you to tailor it to your family’s needs.

●     Clear goals: Term insurance is designed to cover you during the years you have the biggest financial obligations—like raising kids, paying for college, or paying down a mortgage.

Getting Coverage Is Easier Than Ever

In the past, applying for life insurance could involve medical exams, lengthy forms, and weeks of waiting. Today, many insurers offer simplified applications that can be completed online, sometimes without a medical exam, and decisions may come in days—or even minutes.

More Than Just Funeral Costs

A common misconception is that life insurance is only for final expenses. In reality, the payout can help with much bigger financial needs, such as:

●     Replacing lost income

●     Paying off debts like a mortgage or student loans

●     Covering childcare or education costs

●     Supporting long-term financial goals

It’s Often More Affordable Than You Think

Cost is one of the biggest reasons people hesitate to buy life insurance—but surveys consistently show that most families overestimate the price. For a healthy young adult, a term life policy can often cost less than a streaming subscription.

The tradeoff is simple: term policies are temporary. If you outlive the policy and decide not to renew, there’s no payout. But for many households, buying the coverage you need for the years you need it makes financial sense.

How Much Coverage Do You Need?

The right amount depends on your family’s situation and goals. A few common approaches include:

●     Income replacement rule of thumb: Many advisors suggest coverage equal to 10–12 times your annual income.

●     Goal-specific coverage: Choose an amount tied to a specific need—such as paying off a mortgage or funding college for your children.

●     Detailed calculation: Use an online calculator or work with a financial professional to weigh all your obligations and assets.

It’s also a good idea to revisit your coverage as life changes—what worked when you first bought a policy may not fit five or ten years later.

Comparing Policies Is Straightforward

Unlike permanent life insurance, term policies are relatively simple to compare. Focus on:

●     The monthly premium

●     The insurer’s reputation for customer service

●     The company’s financial strength (check ratings from AM Best, Moody’s, S&P, or Fitch)

These factors help ensure you’re not just getting affordable coverage, but reliable protection.

Why Timing Matters

One last reason to act sooner rather than later: age and health play a big role in what you’ll pay. The younger and healthier you are, the lower your premiums are likely to be—and your rate is typically locked in for the life of the policy.

Bottom Line

Life insurance doesn’t need to be complicated or expensive. For many families, a straightforward term policy can provide meaningful protection during the years it matters most. By acting early, you can lock in affordable coverage and gain peace of mind knowing your loved ones are protected.

Sources:

https://www.fidelity.com/learning-center/personal-finance/family-financial-safety/term-insurance

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.