Best Life Insurance for Young Adults (2023)

Generally, life insurance for young people is more affordable than life insurance for older adults. Investing early in life insurance could be an effective means of establishing financial stability for your family.

It might be intimidating to commit to a life insurance policy since most require a long-term commitment. This article will explain how young adults can invest in life insurance and why.

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.

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.

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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