I often talk to young people—maybe 30 years old, single, no kids, no mortgage—who ask, “Why do I need life insurance?”. It seems counterintuitive to think about death when you have no dependents and no debt. But I tell them that this is actually the best time to buy insurance.

When you are young and healthy, the risk of you dying is incredibly low, which means premiums are incredibly cheap. You are essentially gifting your future self a great asset. By taking out a Whole Life or Universal Life policy when you are 20 or 25, you lock in your “insurability” based on that clean health record .

If you wait until you are 50 or 60, you might have developed health issues like diabetes or heart conditions, making insurance difficult or expensive to get. Plus, life changes fast. You might not want kids now, but in five years you might be married with a mortgage and a family to protect.

If you take out a policy now, you lock in a low rate. When those obligations eventually come, you already have the protection in place for a fraction of the cost. It is one of the smartest financial moves a young person can make.