There’s a total of 7 best young adult life insurance companies for the year 2023, and these companies include:
- Corebridge Financial
- Lincoln Financial
- Pacific Life
Life insurance is a crucial financial tool that is frequently disregarded. You could think that you don’t require life insurance if you’re a young adult.
But getting a life insurance policy when you’re still young might be a wise choice and provide you peace of mind knowing that your loved ones are covered financially when the unexpected happens.
Best Young Adult Life Insurance Companies’ Cost Comparison
Your age, health, the amount of coverage, and the term length you select all affect the cost of term life insurance. Healthy young folks can get affordable term life insurance coverage.
Here are some examples of young adult monthly premiums from the top life insurers in our research.
Average Rates for Young Adult Life Insurance for a 30-Year $250,000 Term Life Policy
|Company||Policy name||Cost per month: Female buyer age 20||Cost per month: Female buyer age 25||Cost per month: Male buyer age 20||Cost per month: Male buyer age 25|
|Pacific Life||PL Promise Term||$14.49||$14.49||$17.18||$17.18|
|Haven Life||Haven Term||$14.57||$14.57||$17.47||$17.49|
|Ameritas||Value Plus Term||$15.37||$15.37||$17.97||$17.97|
|Lincoln Financial||TermAccel Level Term||$15.47||$18.38||$18.91||$18.92|
The Best Life Insurance for Young Adults
Although there is no one form of life insurance that best suits everyone’s needs, regardless of age, term life insurance is frequently the most cost-effective option for young people.
The most effective type of policy is dependent on lots of things.
For instance, a person with a young family and a mortgage will have different insurance needs than a single person who rents a home and has an older relative who depends on them materially.
Term Life Insurance for Young Adults
Term life Insurance enables you to lock in rates for a particular term. Young adults might also consider the 40-year term life insurance policies offered by Legal & General America (from its subsidiary Banner Life) and Protective.
The insurer will pay your beneficiaries the death benefit if you pass away while the policy is still in effect.
If the insurance isn’t renewed after you surpass it, it expires and no benefits are given. Term life insurance is substantially less expensive than permanent life insurance.
At the conclusion of the term, you may often renew the insurance up to a particular age if you would like to keep your coverage.
However, it’s usually not a good choice because you may anticipate paying much greater prices with each renewal.
For young people who are cost-conscious and want to make sure they have protection in place when financial demands are frequently at their greatest, term life insurance might be an ideal choice.
Permanent Life insurance for Young Adults
As long as payments are paid, permanent life insurance can offer coverage for your whole lifetime.
A permanent life insurance policy, like term insurance, provides a death benefit to the specified beneficiaries when you die. A cash value component of permanent life insurance typically also increases over time.
This cash value account, from which you can borrow money, make withdrawals, or use to pay premiums, is funded partially by the premiums you pay.
There are multiple types of Permanent Insurance, they include the following:
- Whole Life Insurance: This has fixed & guaranteed premiums, rate of return on cash value & death benefit.
- Universal Life Insurance: This offers the flexibility to adjust your premium payments. There are three main types of universal life insurance, which include guaranteed universal, indexed universal, and variable universal.
- Burial & Final Expense Insurance: This is a small whole-life policy with a death benefit that’s usually between $5,000 and $25,000, and is designed to assist in covering funeral costs & final expenses.
- Survivorship Life Insurance: This is usually whole life insurance that insures two people but only pays out the death benefit once both have died.
Term life insurance is less expensive than permanent life insurance. However, it is a choice for young individuals who want cash-value life insurance coverage or have dependents who will depend on them financially permanently.
Is Life Insurance Worth it for Young Adults?
Life insurance is generally worth it for those who have people relying on them financially.
Additionally, young adults are typically healthier, which means it’s easier to buy life insurance at a low rate compared to when you’re older or potentially facing health issues. Life insurance quotes will go up every year that you wait to buy.
Actually, not all young adults need life insurance. A single person with no dependents and no debt that will be passed on likely does not need a policy. Life insurance is primarily about providing for others after your death.
When a Young Adult Should Consider Getting Life Insurance
As a young adult, here are common situations when you might consider making life insurance part of your overall financial plan.
- Having Dependents
- Having large Debts
- You’re in good health
- You’re a business owner
How Much is Life Insurance for a Young Adult?
The average cost of term life insurance is $31 a month for a healthy 20- or 25-year old according to a third party’s research.
There are lots of factors that affect life insurance rates, but the younger you are, the better life insurance rates you’ll get. Young Adults enjoy high coverage amounts & low premiums.
The quickest and easiest way to determine your life insurance needs is to use a life insurance calculator.
If you prefer a manual approach:
- Add up the obligations you want to cover, such as mortgage payments or income replacement if you were no longer around.
- Subtract assets that could be used by your family for those obligations (such as savings).
- The difference is your estimated life insurance need.