Life Insurance for Young Adults

Eric Van Haaften Best Life Insurance Rates by Age

There are many different types of insurance coverage, but which is the best life insurance for young adults?

Choosing the best life insurance policy can be difficult, especially when you are young and just starting out in life.

Here’s everything you need to know about choosing either term or permanent life insurance to decide which one is right for you.

QUICK LINK NAVIGATION

⇓ Why do young people need life insurance?
⇓ What is the best life insurance for young people?
⇓ Evaluating term insurance lengths (with rate charts)
⇓ Permanent life insurance (with rate charts)
⇓ Best life insurance companies for young adults

Why Young People Need Life Insurance

It’s no secret that young adults have many things going on. They are starting their careers, establishing their independence, and maybe even raising families.

Life insurance for young professionals can often play second fiddle compared to paying off student loans, starting to invest, and buying your first home.

It can be hard enough to juggle all these responsibilities without worrying about what would happen if something happened to them.

Plus, according to CNBC, millennials often delay getting married, having children, and buying a home which usually requires a life insurance policy.

However, over 50% of millennials own life insurance, according to market research conducted by LIMRA.

Life insurance can provide peace of mind for young adults and their families by helping protect them financially in case of an unexpected death.

Why young adults need life insurance

Protect your spouse: Once you get married, you have someone depending on your income to pay the bills. Taking out a 20-year term life policy and designating your spouse as your beneficiary is a smart move to protect your income.
Pay off Student Loans: Student loans are an excellent reason to consider life insurance for young people. Many people carry student loan debt of over $50,000. Parents often co-sign these loans, which must be paid off even after you die.
Protect your children: Let’s face it, having children is expensive. Life insurance for young parents helps ensure your spouse has enough money to raise your children even if you pass away.
Mortgage Protection: Many couples purchase their first house in their 30s to accommodate their growing children. Mortgage life insurance provides a death benefit to pay off your outstanding mortgage balance.

Best Life Insurance for Young Adults

Comparing different life insurance policies is crucial for young adults as policies can vary significantly from one company to another.

The ideal life insurance policy for young adults should provide sufficient coverage to meet their financial obligations in the event of an untimely death.

Fortunately, numerous options are available that cater to the needs and budgets of young families.

Term and permanent life insurance are the two main types of coverage for this demographic, each offering advantages and disadvantages.

Whether you’re just starting your career, preparing to tie the knot, or becoming a new parent, it’s important to determine which kind of policy suits your circumstances.

Term Life Insurance for Young Adults

With term coverage, you can enjoy guaranteed death benefits and consistent premiums for 10-40 years.

Since young adults are generally in good health and have a longer life expectancy, they often qualify for very inexpensive rates.

What type of life insurance should young adults get?

Term life insurance is the ideal choice for young individuals seeking maximum coverage at an affordable price.

It is prevalent among cash-strapped millennials who may struggle to afford the higher premiums associated with permanent life insurance.

Banner Life and Protective Life are renowned providers that offer cost-effective term life insurance options, allowing young individuals to secure coverage for up to four decades.

When determining how much life insurance you need, financially responsible couples with growing financial responsibilities usually purchase between $250,000 and $500,000 in coverage.

If you compare life insurance rates by age below, you may be surprised by how economical term life insurance can be for younger buyers.

So, young folks should always consider buying more coverage because there is little difference in cost between various term lengths and death benefits.

Term Life Insurance for Young Adults

Age	$250k	$500k	$750k	$1mm
	10	10	10	10
20	$10	$15	$19	$21
30	$12	$16	$20	$22
	15	15	15	15
20	$11	$16	$21	$25
30	$12	$17	$22	$27
	20	20	20	20
20	$13	$21	$27	$35
30	$14	$22	$29	$38

*Sample life insurance for 20 and 30-year-old non-smoking males.

Because of similar costs between plans, we chose not to illustrate examples of many ages and various term insurance lengths.

However, the best life insurance for young married couples with student loans, mortgages, or income to protect is usually a 30-year or 40-year term life plan.

Permanent Life Insurance for Young People

Whole life insurance for young adults is only recommended when they have adequate cash reserves to pay for the policy.

However, many young couples start earning more in their early thirties and consider buying a longer-duration permanent policy.

Universal and whole life insurance is perfect for a young person looking for lifetime coverage and accumulating cash value.

Permanent coverage is used with the infinite banking strategy where the cash values function as a forced savings account.

You can eventually borrow accumulated cash values by taking out a policy loan that does not interrupt the compounding interest inside your policy.

How much does it cost for permanent life insurance for a 30-year-old?

The cost of life insurance for a 30-year-old varies depending on several factors, including your health, death benefit, and the insurer.

Permanent life insurance policies are more expensive because they include living benefits and tax-deferred cash value accumulation.

Life Insurance for 30-year-olds

	$250k	$500k	$750k	$1mm
Male	$98	$173	$250	$316
Female	$84	$149	$215	$266

*Universal life insurance for 30-year-old non-smoking males and females.

If these permanent rates are too expensive, a $100,000 policy would be an excellent place to start for young folks who don’t want to spend excessive money.

Ultimately, the best way to determine the cost of life insurance for a 30-year-old is to work with an agent that can provide a quote based on your needs.

How Much Is Whole-life for Young Adults?

With our life insurance calculator, you can get quotes on various types of coverage within minutes.

Your quotes will appear instantly without spending hours researching and comparing different options.

With this tool, you can rest assured knowing that you’re getting accurate quotes to decide what type of policy is best for your situation.

Best Life Insurance Companies for Young Adults

When it comes to choosing a life insurance company, it can be overwhelming with so many options available.

According to Money, there are a few key factors that young people should consider when making this decision.

Firstly, determine how much coverage you need and for how long. This will depend on your circumstances and financial obligations.

Next, decide whether you want a term policy or a permanent one. Term policies cover a specific period, while permanent policies offer lifelong protection.

Consider your budget and determine how much you can contribute towards premiums.

Finding a policy that fits your financial means without sacrificing the necessary coverage is essential.

Another crucial aspect is the financial stability of the insurance company itself. You want to choose an insurer with strong financial ratings and a solid reputation in the industry.

Once you have researched and compared different policies, it’s time to complete an application.

Be truthful when answering questions about your health and lifestyle, as the insurer will use this information to determine your premium.

Life Insurance with No-exam Required

If you are busy and do not want to complete a medical exam, we can help you locate the best no-exam company.

You may find taking an exam a waste of time, or you may not like being poked with needles.

Many companies now use telephone evaluations instead of physical exams for underwriting purposes.

Who are the best life insurance companies for young adults?

A few of the best life insurance companies for a young person to consider include SBLI, Pacific Life, Banner Life, and Lincoln National.

You can apply for death benefits up to $1,000,000 with Lincoln and Pacific Life, while Banner Life and SBLI allow up to $500,000 without a medical exam.

Lincoln Financial is probably the most liberal underwriter of no-exam term coverage and is often the best insurer for most marijuana users.

Plus, these policies are available to young adults at the same cost as their fully underwritten term policies.

So, if you lock in a million-dollar life insurance policy in your 20s or 30s, you could save yourself thousands of dollars compared to buying coverage later in life.

Life Insurance with a Medical Exam

Getting life insurance coverage for young people with certain medical conditions can be easier with a fully underwritten policy.

Just because you have a medical condition doesn’t automatically mean you’ll be rejected or face high premiums.

You should provide your agent with your complete medical history to secure the best rates.

By undergoing an examination process, we can accurately compare different life insurance options based on how well your medical background aligns with each company’s underwriting guidelines.

Some more lenient companies for those in good health or with minor medical conditions include American General, Prudential, and Protective Life.

Plus, many of these highly rated companies will include living benefits riders for terminal and chronic illnesses for an added cost.

If you’re searching for life insurance, you should know that the key to finding the right plan is having access to the best resources.

Affordable Life USA is nationally licensed and has a network of reputable life insurance companies with excellent ratings from the Better Business Bureau, AM Best, and J.D. Power.

With access to various policies tailored to your needs, we’ll help guide you through every step needed to secure quality life insurance coverage.

Best Life Insurance Companies for Young Adults

COMPANY	BBB	AM Best	JD Power
AIG	A+	A	718
AXA Equitable	A+	A+	752
Banner Life	A+	A+	N/A
Brighthouse	A+	A+	N/A
Guardian Life	A+	A++	760
John Hancock	A+	A+	739
Lincoln Financial	A+	A+	744
Mass Mutual	A+	A++	780
Metlife	B-	A+	780
Mutual of Omaha	A+	A+	766
Nationwide	A+	A+	806
Pacific Life	A+	A+	N/A
Principal Financial	A+	A+	774
Protective	A+	A+	742
Prudential	A	A+	770
SBLI	A+	A+	N/A
Transamerica	A+	A+	720

FAQ: Life Insurance for Young People

Should I get life insurance in my 20s? Twentysomethings can secure a low premium and a substantial death benefit because insurers offer cheaper premiums to people without medical conditions. Delaying your purchase until later in life will result in higher premiums and the chance of getting denied coverage.

Is life insurance worth it at a young age? If you have financial obligations or dependents who rely on your income, getting life insurance at a young age is a wise decision. Term life insurance is usually the most cost-effective and convenient choice for young adults unless you need coverage for your entire life.

Should a young single person get life insurance? Evaluating whether you have shared debts or people who rely on your income is important. Even if you don’t have dependents, if there are people in your life who would face financial hardship upon your death, obtaining life insurance coverage should be considered.

At what age should you get life insurance? Most individuals typically consider purchasing life insurance when they reach the age of 30. This is often because many people choose to start a family around this time or already have young children.

How much life insurance do young professionals need? Financial experts typically recommend that young professionals have life insurance coverage of at least ten times their annual salary. For example, if you earn $100,000 per year, you would need a policy with a coverage amount of $1,000,000.