Best Life Insurance for Young Adults

If you are fresh out of high school or college and searching for a life insurance policy, you may be curious to learn about the best life insurance for young adults. It’s an excellent idea to purchase life insurance at a young age, as rates can be much more affordable. Depending on your life and family needs, you may be able to purchase a life insurance policy at a very low rate.

Life insurance companies tend to offer young adults lower rates for coverage because of their age and health. This is especially true if you are purchasing a 10-year term life insurance policy, as you would still be quite young when the policy expired.

As you shop around for the best life insurance companies for young adults, compare quotes from several different companies to make sure you’re getting the best coverage at the most affordable rate. This will give you confidence that you are not overpaying for coverage.

You can use our free quote tool above to find and compare life insurance for young adults.

What is the best type of life insurance for young adults?

Deciding on the best insurance for young adults can be difficult until you know more about what you’re looking for in a policy’s coverage.

To choose between a term life insurance policy and a permanent life insurance policy, you will want to assess your needs.

Do you want to purchase life insurance as a form of long-term financial planning?

Are you looking to lock in rates while you’re young for a whole life insurance policy?

Maybe you have a pre-existing condition and know that life insurance could cost more as you get older due to potential complications. Answer these questions to figure out what you want to be covered and whether you’re looking for something that you’ll have for the rest of your life or something that will cover you for 10 to 30 years.

Term Life Insurance for Young Adults

If you are purchasing a home, getting married, or starting a family, a term life insurance policy may be a great place to start when it comes to life insurance.

With a term life insurance policy, young adults can purchase coverage for a set period of time, typically anywhere from 10 to 30 years. Term life insurance often has lower monthly rates.

Because of this, young adults who only want coverage for a set period — like while their children are growing up, or as a supplemental policy in addition to a group policy with an employer — may find that a term life insurance policy is a great fit for them.

Permanent Life Insurance for Young Adults

Because permanent life insurance lasts a lifetime, it is more of an investment and often takes more consideration before purchasing.

The most common type of permanent life insurance is whole life insurance, which does not expire and can accumulate a cash value that you can use while you are alive, if necessary. Although whole life insurance policies tend to have higher monthly rates than term policies, you are likely to get the best rates available as a young adult.

If you want to purchase a life insurance policy that allows you to save a bit of money for a rainy day, a permanent whole life insurance policy could be a great option. Other options for permanent life insurance include:

• Universal life insurance
• Variable life insurance
• Variable universal life insurance
• Indexed universal life insurance
• Joint life insurance

You can speak to a representative from any of the life insurance companies you’re considering to learn more about your options for coverage and to ask questions about which type of policy might work best for your needs.

How much is life insurance for young adults?

You will never know exactly how much you’ll pay for life insurance coverage until you do some research and get quotes from different companies. The table below shows average term life insurance rates for people ages 20 to 29, based on coverage amounts.

The prices for term life insurance coverage for young adults are often very affordable. The next table shows average monthly rates for a whole life insurance policy based on gender, age, and whether the person smokes.

Average Whole Life Insurance Rates by Age and Tobacco Use

Again, you can see that the younger you are, the cheaper the cost of life insurance will be. But term life insurance policies are significantly less expensive than most forms of permanent life insurance.

Should I buy life insurance?

As a single young adult, you may feel like there’s no real need for life insurance coverage. Your immediate needs are met, you do not have a partner or children to take care of, and you may not have significant investments that need to be covered. But if you are planning to buy a home, get married, or start a family, or if you have people in your life that you want to care for, a life insurance policy can be an excellent way to plan for your future.

Before you make any decisions, shop around with many different companies. This will help you find the coverage that’s right for you at the lowest price possible. Use our free quote tool below to find and compare rates for young adult life insurance today.