Life insurance in your 20s is worth it in many situations but not all. Your need for coverage depends on who relies on your income and what financial obligations you'd leave behind. The answer depends on your situation:

Yes, get life insurance in your 20s if:

• Your parents co-signed student loans that transfer to them if you die
• You have a spouse, mortgage or children depending on your income
• You're planning major life changes like marriage or starting a family
• You want to lock in low rates before health conditions develop or you age

No, skip life insurance in your 20s if:

• You have no debt, no one depends on your income and you don't see this changing in the next several years
• Your budget can't handle monthly premiums right now

The low cost makes coverage worth it for many people in their 20s even if they currently don't have dependents but are anticipating them in the near future. Term life insurance is $4 to $15 monthly for $100,000 death benefit. A 25-year-old locks in rates that stay fixed for decades, while waiting until a later age means paying more per month over 20 years for the same coverage.

Getting insured early has major advantages: lower rates, easier approval and no medical exams. Getting life insurance in your 20s pays off for these 5 reasons:

Life insurance is cheapest when you're young and healthy. Life insurance premiums, or the monthly cost, increase as you age, sometimes dramatically. Locking in a rate in your 20s can save you thousands over the life of the policy. The table below shows how much more you might pay by waiting. A 25-year-old could pay $12,000 less than a 45-year-old for the same $500,000 20-year term policy.

*The rates above are based on average term life insurance quotes for male nonsmokers with average weight and health ratings. Actual rates may vary depending on coverage amount, policy type, specific age, gender, lifestyle, health and location.

Buying life insurance in your 20s makes getting approved easier. As you age, medical issues become more likely and can push premiums higher or lead to denials.

Health issues that can raise your rates or lead to denial include:

• High blood pressure and heart disease: These conditions increase your risk for serious complications.
• Diabetes: Insurers view diabetes as a long-term health risk that affects your life expectancy and increases costs.
• Cancer: Having cancer can result in higher premiums or coverage denial, especially if you're currently receiving cancer treatment.
• Obesity: Obesity is linked to heart disease, diabetes and other health problems. Being overweight can lead to higher premiums or make you uninsurable.
• Depression and anxiety: Mental health conditions may increase your rates, particularly if you've been hospitalized or have had suicide attempts.

You can still get covered with these conditions, but it can be tougher. Buying in your 20s helps you lock in coverage before these conditions develop and before they impact your rates or eligibility.

If you die with co-signed student loans, your parents inherit the full debt. Private student loans don't discharge at death like federal loans do.

A $100,000 term policy costs $8 to $15 monthly and covers your loan balance plus funeral expenses. Without it, your parents would nee to pay off off $60,000+ loans while grieving.

Most insurers have a fast buying process that doesn't require health screening for coverage up to $3 million. This simplified process approves applications in days rather than weeks. Applicants over 40 typically need medical screening for coverage above $100,000.

Many policies purchased in your 20s include guaranteed insurability riders, allowing you to increase coverage later without new medical exams. You can start with basic coverage in your 20s and add more when you get married, have children or buy a home. You're locking in your right to buy more insurance at healthy-person rates, even if you develop health problems later.

Life insurance isn't always the right move in your 20s. Here are situations where waiting makes more financial sense.

You're Paying Off High-Interest Debt
Credit card debt at 20% interest costs you more than life insurance protects. Pay off high-interest debt first, then buy coverage. A $5,000 credit card balance costs you $1,000 yearly in interest alone.

Your Employer Offers Free Coverage
If your employer provides free life insurance worth one to two times your salary, that may cover your immediate needs and co-signed loans while you build savings. Buy your own policy when you have a mortgage or children.

You're Still Establishing Financial Stability
Just graduated and living paycheck to paycheck? Focus on building a three-month emergency fund first.

Term life insurance is the right choice for most people in their 20s. It covers you during the years when your family depends on your income, costs significantly less than whole life and provides the protection you actually need.

A 25-year-old pays $34 monthly for $500,000 in term coverage versus $364 monthly for the same amount in whole life insurance. That's a $330 monthly difference you could invest in retirement accounts, pay toward student loans or use for a home or rent payments. Instead, buy a 20 or 30-year term policy that covers you while raising children, paying off a mortgage and building wealth. Once those obligations end, you'll likely have enough assets that your family won't need insurance anymore.

Whole life insurance builds cash value and lasts your entire life, but it only makes sense if you've maxed out retirement contributions and need additional tax-advantaged savings.

Don't base life insurance coverage amounts on your current entry-level salary. Your income will likely double or triple over the next decade, and your financial responsibilities will grow with it.

Consider these factors when determining coverage:

• Outstanding debts: Student loans, car payments and credit cards
• Future income replacement: Your expected peak income in five to 10 years, not today's salary
• Anticipated major expenses: Future mortgage payments, children's education costs and family living expenses
• Final expenses: Funeral and burial costs typically range from $7,000 to $15,000

Use the DIME formula: Debt + Income replacement + Mortgage + Education costs.

Add your current debts, multiply your expected peak income by 10 to 15 years, add anticipated mortgage costs and include estimated education expenses for future children.

Determine your coverage needs: Calculate your personalized coverage needs in just a few easy steps with our free life insurance calculator.

Buying life insurance in your 20s makes sense if you have co-signed debt, dependents or plan major life changes like marriage or homeownership. Securing coverage early locks in low premiums, protects loved ones from your financial obligations and guarantees approval before health issues develop. If you're healthy and planning ahead, acting now saves you money and protects the people who depend on you.

Below are answers to frequently asked question from life insurance buyers in their 20s.

We collected 1,488 life insurance quotes using standardized profiles of healthy young adults ages 20 to 29 to determine if early coverage makes financial sense. Our sample profiles represented nonsmokers with various heights and weights within normal ranges, all with average health ratings.

For cost comparisons throughout this guide, we used quotes for 25-year-old and 35-year-old male nonsmokers with average weight and health ratings to show the impact of waiting to buy coverage.