Best Life Insurance for Young Adults (2024)
There are many policy options when reviewing life insurance for young adults. Term life insurance can be an affordable monthly option with excellent coverage for young adults. A permanent life insurance policy can help build cash value over your lifespan while simultaneously accruing interest for those with more financial freedom. Young adults can get life insurance for under $15 per month in many cases.
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Heidi Mertlich
Licensed Insurance Agent
Heidi works with top-rated life insurance carriers to bring her clients the highest quality protection at the most competitive prices. She founded NoPhysicalTermLife.com, specializing in life insurance that doesn’t require a medical exam. Heidi is a regular contributor to several insurance websites, including FinanceBuzz.com, Insurist.com, and Forbes. As a parent herself, she understands the ...
Licensed Insurance Agent
UPDATED: Jan 22, 2024
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Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Jan 22, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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Welcome to our comprehensive guide on finding the best life insurance for young adults while also adopting eco-friendly habits like recycling at home. We will delve into the key topics of understanding the importance of life insurance for young adults, exploring the different types of policies available, and providing valuable tips for recycling at home to contribute to a sustainable environment.
Whether you’re a young adult seeking financial protection or an environmentally conscious individual looking to make a positive impact, this guide has you covered. Ready to secure your future and embrace sustainable living? Enter your zip code now to compare rates from the best insurance providers and take the first step towards a brighter future for yourself and the planet.
What is the best life insurance for young adults?
The best life insurance for young adults tends to be affordable and flexible to accommodate their budget. Many young adults are establishing financial security and working on building savings.
The best policy varies from person to person based on their needs and budget. On the bright side, life insurance is generally less expensive for young adults, so there may be a few policy options.
In general, term life insurance is the most inexpensive life insurance policy option. Even so, term life insurance rates can vary greatly depending on your age, gender, coverage amount, and more.
Young adults with high-paying jobs might be more likely to invest in a permanent life insurance policy. These policies build cash value that accrues interest while term life insurance policies do not.
Universal life insurance policies, which are typically more flexible than whole life insurance policies, could also be an option.
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How do I know which life insurance policy to get as a young adult?
As noted above, the policy you want to invest in depends on your needs and budget. Your marital status could change your needs quickly. There are different life insurance policies for young adults depending on their situation, such as being single or becoming divorced. Also, do car insurance rates increase after getting a divorce? It’s important to talk to your agent about this topic.
For example, if you’re a single male with no dependents, you might prioritize a permanent life insurance policy as an investment. The cash value could add up over time for an emergency.
On the other hand, a married couple would need to consider how the death of one or both parents would affect the family financially. From there, it could be worthwhile to invest in a term life insurance policy with coverage that will protect their spouse and children.
The coverage amount depends on the parents’ income, debts, and assets. It usually helps to have a large death benefit to cover vehicle loans, a mortgage, and other significant debts that contribute to a high quality of life.
According to Debt.org, millennials average $87,448 in debt and make up most young adults. If you have any outstanding debt, it’s always a good idea to get enough coverage to pay off those debts.
Young adults may not have the extra monthly income for a permanent life insurance policy. If that’s the case, you can usually find convertible term life insurance policies to accommodate your budget and allow you to switch to a permanent policy in the future.
Young Adult Life Insurance Quotes
In most cases, young adults can find affordable life insurance quotes for under $20 per month, assuming there aren’t any major underlying health concerns.
Since age is a pricing factor, life insurance for 20-year-olds tends to be cheaper than life insurance for 30-year-olds, and so on. As shown below, the company you choose also plays a role in your prices.
| Age | AIG | Allstate | John Hancock | MassMutual | Nationwide | Principal |
|---|---|---|---|---|---|---|
| 25 | $12.90 | $20.00 | $14.21 | $15.00 | $23.59 | $13.78 |
| 30 | $12.97 | $20.00 | $14.79 | $15.23 | $16.02 | $14.00 |
| 35 | $13.53 | $22.00 | $16.86 | $15.88 | $16.02 | $14.22 |
As you can see above, life insurance prices for young adult males can be reasonable. You may also notice that pricing varies from one company to the next. Nationwide, for example, charges higher rates on life insurance for 25-year-olds than 30-year-olds. Read our Nationwide insurance review for more information.
This might be a rare case, but it does emphasize the importance of shopping for quotes between different life insurance companies. Rates can also change based on the term duration.
| Age | Male, $100,000 | Female, $100,000 | Male, $250,000 | Female, $250,000 | Male, $500,000 | Female, $500,000 |
|---|---|---|---|---|---|---|
| 25 | $16.89 | $14.35 | $20.35 | $17.94 | $33.25 | $28.44 |
| 30 | $16.89 | $14.44 | $21.44 | $19.47 | $35.44 | $31.50 |
| 35 | $16.89 | $14.53 | $23.19 | $21.00 | $38.94 | $34.57 |
With the sample rates above, you can see that women tend to pay less for life insurance than men. Additionally, five times the coverage costs only about twice as much. If you’re looking for better value, a higher coverage amount with a more extended coverage term could be worthwhile.
If you are a young adult looking for a life insurance policy, it’s almost always better to invest sooner than later. You can stop payments if you get into a financial crisis, but you could lose your coverage.
For parents, it could be worthwhile to pay extra on top of your rates to include a child rider. A child rider is a children’s life insurance plan designed to cover a child’s funeral expenses if they unexpectedly pass away.
Keys to Buying Life Insurance as a Young Adult
Young adults can benefit from a life insurance policy, especially if they have children. They often have access to cheap life insurance policies, which is a significant reason to invest early. You could start protecting your family’s financial future for under $15 per month.
We hope you enjoyed learning more about life insurance for young adults. Before you go, enter your ZIP code below to get free quotes from the top life insurance companies in your area.
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Case Studies: Best Life Insurance for Young Adults
Case Study 1: John’s Journey to Financial Security
John, a 25-year-old young adult, wanted to secure his financial future and provide for his loved ones in case of an unfortunate event. He explored different life insurance options and found that the term life insurance offered by Company A suited his needs. With affordable premiums and coverage for a specified period, John felt confident in his decision to protect his family’s financial well-being while staying within his budget.
Case Study 2: Emily’s Comprehensive Protection Plan
Emily, a 28-year-old professional, sought a comprehensive life insurance plan that provided benefits during her lifetime. Company B’s permanent life insurance policy stood out after her thorough research. With lifelong coverage, an investment component, and the potential for cash value growth, it offered both protection and future financial opportunities, making it appealing to Emily.
Case Study 3: Mark’s Student Loan Safety Net
Worried about his substantial student loan debt, recent graduate Mark sought life insurance options to protect his family. Company C’s policy designed for student loan protection caught his attention. With a lump sum payout in the event of his passing, it would provide the financial means for his loved ones to handle his outstanding loans and avoid financial hardships.
Case Study 4: Sarah’s Growing Family Coverage
Seeking financial stability for her growing family, Sarah, a 30-year-old mother, chose Company D’s family life insurance policy. This comprehensive coverage not only protected her and her spouse but also extended to their children. Sarah felt reassured that no matter the challenges they faced, their family’s financial future would remain secure.
Case Study 5: David’s Retirement Planning
Entrepreneur David, 32, prioritized his wealth-building and retirement planning, understanding the significance of life insurance for financial protection and wealth accumulation. Company E’s indexed universal life insurance policy stood out after his extensive research. With its death benefit and potential for cash value growth tied to an underlying index’s performance, it aligned perfectly with David’s long-term investment objectives.
Frequently Asked Questions
What is the best life insurance for young adults?
The best life insurance policy for young adults varies depending on their needs and budget. Generally, term life insurance is the most affordable option. However, young adults with high-paying jobs might be more interested in permanent life insurance policies that can build cash value over time.
How do I know which life insurance policy to get as a young adult?
The policy you want to invest in depends on your situation, such as your marital status and whether you have dependents. For example, if you are a single male with no dependents, you might prioritize a permanent life insurance policy as an investment. On the other hand, if you are married with children, a term life insurance policy with coverage that protects your spouse and children may be more suitable.
How much does life insurance cost for young adults?
Life insurance for young adults is generally more affordable than it is for older adults. Young adults can find affordable life insurance quotes for under $20 per month, assuming there aren’t any major underlying health concerns. Life insurance rates can vary greatly depending on your age, gender, coverage amount, and more. It is always advisable to compare quotes from different insurance companies to find the best policy for you.
Why should young adults invest in life insurance?
Investing in life insurance as a young adult can be an effective means of establishing financial stability for your family. It is usually cheaper for young adults, and it can help protect your family’s financial future. If you have children, you could start protecting your family’s financial future for under $15 per month.
What are the keys to buying life insurance as a young adult?
The keys to buying life insurance as a young adult include understanding your needs and budget, comparing quotes from different insurance companies, and knowing the different types of policies available. It is also essential to talk to your insurance agent about any questions or concerns you have.
Compare The Best Insurance Quotes In The Country
Compare quotes from the top insurance companies and save!
Secured with SHA-256 Encryption
Heidi Mertlich
Licensed Insurance Agent
Heidi works with top-rated life insurance carriers to bring her clients the highest quality protection at the most competitive prices. She founded NoPhysicalTermLife.com, specializing in life insurance that doesn’t require a medical exam. Heidi is a regular contributor to several insurance websites, including FinanceBuzz.com, Insurist.com, and Forbes. As a parent herself, she understands the ...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.