Best life insurance companies for millennials

Life insurance is more affordable for millennials, who are relatively young and healthy. You may even qualify for convenient instant decision policies.

According to a 2021 study by LIMRA, only 49% of millennials have life insurance coverage, despite half of those surveyed expressing concern that their families would struggle financially without their support. For millennials, the best time to buy life insurance is now.

A life insurance policy will fill financial gaps for your family if you pass away while you’re still building your savings. When you’re young and healthy, you’ll pay the most affordable rates for life insurance and lock in low pricing for decades.

Here’s how to find the best life insurance for millennials and secure peace of mind for you and your loved ones.

Key Takeaways

  • Millennials need life insurance to support their loved ones and cover outstanding debts if they die unexpectedly

  • The younger you are, the less you’ll pay for life insurance

  • Instant decision life insurance is a good option for healthy millennials who want to secure coverage as soon as possible

  • You will find the best policy for your needs by comparing quotes from multiple providers

Why you should buy life insurance when you’re young

You can have big life commitments and loved ones who rely on you financially at any age. Millennials, now aged 25-40 years, are about 50% of the workforce and provide for their families and aging parents. Many carry debt from homebuying or college.

If you pass away, your loved ones become solely responsible for:

  • Childcare or care for elderly relatives

  • Daily living expenses and bills

  • Funeral expenses and other end-of-life bills

  • Shared debts, like cosigned student loans 

Buying life insurance when you’re young secures support for those financial obligations at the most affordable price.

Life insurance premiums go up with age

Unless you have an underlying health condition that would earn you above-average premiums regardless of age, life insurance will be cheaper for you in your 20s and 30s than at any other age. 

Life insurance premiums increase by an average of 4.5-9% every year you put off buying a policy. And that’s just from getting older; if your health worsens, buying coverage will be even pricier. 

Insurance gaps put your loved ones at risk

Some people don’t want to risk paying for a life insurance policy they might never need. But the consequences of not owning a policy are greater than losing some cash on your premiums

By not having life insurance, you’re making a big bet that nothing will happen to you. But in a worst-case scenario, that means your loved ones could lose the ability to afford their home or daily expenses.

Not having enough life insurance can be a gamble too. Employer sponsored life insurance doesn’t offer adequate coverage and you lose it as soon as you switch jobs. If your policy doesn’t cover all your anticipated expenses and debts, it won’t be enough to ensure the financial protection of your loved ones.

→ Find out how much life insurance coverage you need  

It protects your family from your debts

Millennials are famously marrying later and buying less property than older generations. If you don’t have a mortgage, spouse, or children, you might think you don’t need life insurance. But covering your debts is one of the biggest reasons to buy a policy. 

More important than your debt is who shares it. The average student loan debt in the U.S. is $39,351 and totals $1.7 trillion nationally. If you had a cosigner on your loans, that person will shoulder those costs when you die. 

Even if you’re still in school, you might still need a life insurance policy. If your student loans cover everyday expenses, bills, or rent for a partner or dependent, they could lose vital financial resources when you die.

→ Learn more about why it’s important to have life insurance

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The most affordable life insurance companies for millennials

Buying life insurance as a millennial comes with one major perk—it’s at its most affordable. A recent study by LIMRA found that 50% of millennials overestimated the cost of a life insurance policy by almost 10 times the actual amount. In reality, if you’re relatively young and healthy, term life insurance is very affordable. 

Take a look at the sample premiums below to get a sense of how much a $500,000 policy costs for a millennial from some of the top life insurance companies.

Sample premiums for millennials: $500,000, 20-year term life policy

COMPANYSEXAGE 25AGE 30AGE 35AGE 40
AIGMale$24.31$25.01$26.39$36.12
Female$18.96$19.81$22.55$30.23
Banner LifeMale$24.17$24.87$26.23$35.91
Female$18.86$19.70$22.42$30.06
BrighthouseMale$24.34$25.20$26.48$36.30
Female$19.22$20.07$22.64$29.89
Lincoln FinancialMale$25.93$26.14$27.00$37.13
Female$20.28$20.28$23.07$30.94
Mutual of OmahaMale$30.32$30.32$32.46$44.51
Female$24.73$24.73$28.17$37.63
Pacific LifeMale$24.69$25.54$26.77$36.55
Female$19.38$20.36$22.52$30.17
ProtectiveMale$23.93$24.81$26.18$36.08
Female$18.62$19.70$22.49$30.14
PrudentialMale$40.69$43.31$45.06$55.56
Female$30.19$34.13$35.00$45.50
SBLIMale$25.12$25.97$27.98$38.09
Female$19.77$20.83$23.41$31.10
TransamericaMale$24.94$25.80$27.09$36.55
Female$19.35$20.21$22.79$30.53

Methodology: Sample monthly premiums are for male and female non-smokers who qualify for a Preferred health rating, buying a $500,000, 20-year term life insurance policy. Individual rates will vary as specific circumstances will affect each customer's rate. Rate illustration valid as of 3/26/2021.

The best life insurance policies for millennials

If you’re young and healthy, you could qualify for a competitive policy without taking the routine life insurance medical exam. You may not even have to wait the usual five to six weeks for application approval. 

Instant decision life insurance policies from Lincoln Financial and Brighthouse provide optimal coverage at competitive prices, and instead of requiring a medical exam, they do a thorough evaluation of your previous medical records to determine your coverage. 

Your application still undergoes a holistic review, so remember that you may still be declined coverage or referred into a standard underwriting process if the insurer sees any red flags. 

How does instant decision life insurance work?

Instant decision life insurance offers all the features of a term life insurance policy—without requiring an in-person medical exam. You’ll complete a phone interview that is followed by a deep dive into details like:

  • Previous physicals and labs

  • Pharmacy records

  • Prior diagnoses and procedures

  • Medical billing records

  • Credit history

  • Driving history

  • Public information such as criminal history or bankruptcy

This is usually enough information to warrant an application approval (or denial) from a provider, but additional details might be required if something in your background is flagged as a risk. 

The entire process takes 24 hours with Brighthouse and two to three days with Lincoln, compared to five to six weeks for a traditional life insurance policy. 

→ Learn more about instant decision life insurance

Lincoln TermAccel

Lincoln TermAccel is a competitive policy for individuals in good health—though if you have a more complicated medical history, it may be harder to get approved for coverage. Policies are available for 10-, 15-, 20-, or 30-year terms to individuals ages 18-60, with some age restrictions for 30-year terms and smokers. Death benefits range from $100,000 to $1 million.

The policy is especially valuable to people who may not get an affordable no-medical exam policy elsewhere. Marijuana smokers who don’t work in the industry can get competitive premiums and smokers have a better chance of getting coverage than they would with other accelerated life insurance policies.

Brighthouse SimplySelect

Brighthouse SimplySelect is a no-medical exam term policy that offers coverage comparable to a traditional term life insurance policy almost immediately. People aged 18-50 can get a term length of 10-, 20-, or 30-years and up to $2,000,000 in coverage.

The greatest advantage of instant decision policies is their efficiency. Premiums for instant decision policies are usually comparable to similar term life policies, but come with the added simplicity and speed of skipping the medical exam.

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Other factors millennials should look for in a life insurance company

An affordable premium is an important part of any life insurance plan, but there are other factors to consider when choosing the best insurer to protect your family’s financial security.

  • Are they a good match for your health? Some providers consider certain medical conditions lower risk than others. Work with an independent insurance agent to compare rates.

  • Do they offer the riders you need? Not every provider offers the same riders to customize your coverage. Confirm with an agent if riders are important to you. 

  • How much can you do electronically? You may only be able to make certain changes to your policy by mail, depending on your insurer. If you prefer to do things digitally, go with a life insurance company that can accommodate you.

  • How quickly do you need coverage? It can take five to six weeks or more to buy a traditional life insurance policy. If you need coverage sooner, some providers may be faster than others or offer no-medical exam options or temporary coverage.

The best life insurance company and policy for any millennial depends largely on your health history and lifestyle. But buying a policy while you’re young will secure protection for your loved ones early and save you money long-term. To find the best policy for your needs, shop around with an independent insurance broker.

→ Find the best life insurance company for you

Life insurance for millennials FAQ:

Do millennials need to buy life insurance?

If you’re a millennial with cosigned loans, children, or other financial obligations, you should buy life insurance to protect your loved ones.

What is the best life insurance for millennials?

The best life insurance company for millennials depends on your individual profile and needs. Young and healthy millennials may prefer to skip the medical exam with instant decision life insurance products.

How much does life insurance cost for millennials?

Healthy millennials could pay $20-40 per month for a $500,000, 20-year life insurance policy. Premiums vary based on your individual circumstances.

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