People in their 20s have a lot of financial decisions to make. From buying a first home to paying off most student debt, the financial decisions made for someone in their 20s can have a major impact on the financial decisions made down the road. One financial decision often escapes the attention of people in their 20s.

It’s called life insurance, and it’s not as intimidating as some personal finance experts make it out to be.

Life insurance makes sense for people in their 20s for several reasons:

Let’s read the stories of four people in their 20s that decided to purchase term life insurance policies.

Holly Johnson

As a freelance writer and editor, Holly Johnson purchased her first life insurance policy just before she turned 30 years old. The policy costs $25 per month for $250,000 worth of coverage that lasts for 30 years. Although being free of debt and saving an above-average amount of money for retirement, Holly decided to buy another term life insurance policy at 37 years of age.

“The reality is, having $1 million in life insurance coverage has allowed me to stop worrying about what would happen to my family finances if I died,” she wrote. “I never lose any sleep wondering how they would pay for my funeral or whether my kids will be able to go to college, and I never stress over how my husband might pay bills or care for our two children if he were to suddenly lose my income.”

Clint Proctor

Right after he became a father for the first time and the owner of a home in the same year, Clint Proctor purchased a term life insurance policy worth $500,000. Clint selected a policy that covered around 10 times his annual salary. The $500,000 worth of coverage costs just $21 a month.

“If I die before my wife, I don’t want her to struggle to make our mortgage payment. She’ll have enough stress without having to worry about losing our home,” Proctor stated in an interview. “Having life insurance gives me peace of mind that housing won’t be a concern for my wife and two boys. And that helps me sleep better at night.”

Eric Rosenberg

Before he took out a mortgage and started a family, Eric Rosenberg was already thinking about the financial future for his family. Eric went with a $1 million term life insurance policy that costs $78 per month for 30 years of coverage.

 “I picked a $1 million policy because, based on our expenses and lifestyle at the time, it would have easily covered at least ten years of expenses not taking into account any investment gains on the proceeds,” Rosenberg wrote. “But now that I actually have two kids, I sometimes wish I could go back and get a bigger policy that would have paid for college and a full mortgage payoff as well.”

Brynne Conroy

Pregnant with her first child in her 20w, Brynne Conroy decided to purchase a 20-year term life insurance policy. Since she has pre-existing medical conditions, Brynne had to pay an above-average monthly rate for a $200,000 policy. As her income has increased over the years, Brynne has bought additional coverage. “There is a great peace of mind knowing that if I pass away in my prime earning years, my children will be OK,” she said.

What is the common motivation for the four buyers of life insurance? The answer is they all purchased term life insurance either right after a major life event or in anticipation of a major life event unfolding in the near future.

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