Buying life insurance in your 20s is a smart way to lock in lower premiums and save money down the road. You might not think you need it yet — you're young, and hopefully healthy too. But that’s exactly why now is a good time to buy. Premiums are based largely on age and health, so the younger and healthier you are, the cheaper your rates will be — and those rates typically stay fixed for the entire term. For example, someone who is 20 years old would pay around $54 a month for whole-life insurance, while someone who is 60 years old would pay $263 a month. If you live until 90, that could save you $49,320 simply by starting early. Just a heads up — whole life insurance typically has higher premiums than term insurance, which usually lasts anywhere from 10 to 30 years. The key is being able to keep up with those monthly premiums from a young age, otherwise you would risk losing your policy and investments until that point. Beyond the savings, life insurance is a smart way to protect your future self and your loved ones.