What are the benefits of getting life insurance when you’re younger?
The younger you are when you buy a life insurance policy, the cheaper your rates will be. In fact, saving money by applying early is one of the benefits of life insurance for young adults.
In a study by LIMRA, a research, consulting, and professional development organization for financial services, 44% of millennials estimated that a 20-year term policy would cost $1,000 or more per year — but the actual cost of the policy was only $165 per year. [1]
Being young and healthy is a good opportunity to lock in a cheap fixed rate for decades. Each year you delay buying a life insurance policy, the cost of premiums increases by 4.5% to 9% on average.
How much does life insurance for young adults cost?
Life insurance coverage is more affordable than you might think and the younger you are, the cheaper it is to get covered. A 30-year-old non-smoking female in good health can expect to pay $22.36 per month for a 20-year term life insurance policy with a $500,000 death benefit payout. A 30-year-old non-smoking male with a similar profile can expect to pay $27.96 per month for the same coverage.
Age | Gender | Non-smoker | Smoker |
|---|---|---|---|
25 | Female | $20.91 | $59.74 |
Male | $26.97 | $75.47 | |
30 | Female | $22.36 | $65.75 |
Male | $27.96 | $80.95 | |
35 | Female | $22.55 | $80.33 |
Male | $30.51 | $96.21 |
Methodology: Average monthly rates are calculated for male and female non-smokers in a Preferred health classification obtaining a 20-year $500,000 term life insurance policy. Life insurance averages are based on a composite of policies offered through Policygenius from Banner Life, Brighthouse, Corebridge Financial, Lincoln Financial, Foresters Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Illustration valid as of 07/01/2023.
The best life insurance companies for young adults
If you’re young, a life insurance policy can help your loved ones manage expenses if you pass away unexpectedly. And if you’re planning to have a family, buying life insurance now is one of the most affordable ways to protect them financially in the future.
We used industry data, pricing from Policygenius carrier partners, and third-party ratings like AM Best and J.D. Power to pick the best insurers on the market. Our independent recommendations will help you get life insurance coverage with confidence.
Methodology
Why you can trust our picks
Our recommendations are based on internal and external expert analysis, as well as our Policygenius Life Insurance Price Index, which uses real-time data from leading life insurance companies to determine pricing trends. When reviewing a life insurance company, our editorial team uses a proprietary scoring rubric with five factors — price, policy details, financial strength, transparency, and customer experience — to assign an unbiased rating between one and five stars. These ratings are also taken into consideration as part of our company recommendations. We don’t get paid for our reviews.
Our reviews and recommendations can help you find a reliable insurer for your family’s financial protection, but the best life insurance company for you depends on multiple factors. A licensed agent at Policygenius can support you during the application process to ensure you get the right coverage for your circumstances at the most competitive price.
2023 Policygenius award winner
Brighthouse Financial
5.0
No-medical-exam option
Why we chose it
Brighthouse Financial offers competitive rates, comprehensive coverage, and application decisions in as little as 24 hours, making it a great choice for people who want to get life insurance coverage without having to take the medical exam.
Pros and cons
Pros
Extremely affordable
Instant-decision applications
Best-in-class no-exam option
Cons
Traditional term life not available in CA, IL, LA, ME, or NY
Term life applicants limited to ages 25-50
Best overall life insurance for young adults: Brighthouse Financial
Brighthouse Financial features one of the best overall life insurance products for young adults age 25 and up — an instant approval, no-medical-exam option that can get you the coverage you need within a few days. It also offers affordable premiums and coverage amounts up to $3 million.
Best no-medical-exam life insurance for young adults: Brighthouse Financial
For young people looking to skip the medical exam that’s a standard part of the life insurance application process, Brighthouse SimplySelect® by Brighthouse Financial is our top pick for no-med term coverage.
Brighthouse’s SimplySelect — which is available exclusively through Policygenius — was selected by Forbes as the best no-medical-exam life insurance on the market.
For qualifying applicants, it offers affordable prices, coverage amounts up to $3 million, and a very short underwriting period. You can get approved immediately after your health interview.
2023 Policygenius award winner
Banner Life
4.9
30+ year terms
All 50 states
No-medical-exam option
Why we chose it
Banner Life has some of the longest term lengths — up to 40 years — and most competitive life insurance rates available, even for people with a history of medical conditions.
Pros and cons
Pros
Competitive rates for a variety of health conditions
Fast instant-decision option for qualifying applicants
Variety of term lengths up to 40 years
Cons
Application underwriting can take longer than average
Does not have the most competitive rates for older applicants
Cheapest life insurance for millennials: Banner Life
Banner Life offers some of the cheapest life insurance for millennials across a range of health classifications. It’s especially enticing because it offers no-medical-exam and instant-decision options for millennials who have no or just one or two minor and well-controlled health conditions.
Best life insurance for young families: Banner Life
From newlyweds to parents-to-be, young families can purchase 35-year or 40-year term life policies from Banner Life at an affordable cost, which can help them protect children until they’re financially independent.
2023 Policygenius award winner
Pacific Life
4.8
All 50 states
No-medical-exam option
Why we chose it
Pacific Life offers some of the lowest rates for term life insurance across age brackets. It also has the most competitive rates for many health conditions and builds.
Pros and cons
Pros
Extremely affordable across age brackets
Affordable guaranteed universal life insurance option for people who need lifetime coverage
Favorable underwriting for many health conditions
Cons
Traditional term life not available in NY
There are better carriers for active duty military, people who have a history of alcohol abuse, and people who have been through bankruptcy
Best term life insurance for young adults: Pacific Life
Pacific Life offers affordable premiums across all ages — including young adults. Pacific Life is A+ rated according to AM Best and offers term lengths up to 30 years.
Young adults age 18 and up with few health conditions and risk factors can also apply to bypass the medical exam for faster, easier approval. Instead, you’d complete a health interview online or over the phone.
Transamerica
4.6
No-medical-exam option
Why we chose it
Transamerica is one of the oldest and largest life insurance companies, with over 12 million active accounts today. It offers affordable rates for almost every age, and you can even skip the medical exam if you fall under a certain age or coverage amount.
Pros and cons
Pros
Competitive rates for term life insurance
No-medical-exam available for qualifying applicants, including smokers and people between 60 and 70, which is rare
One of the fastest turnaround times in the industry for traditionally underwritten term policies
Cons
Term life not available in New York
Not a good option for people with a history of cancer, alcohol abuse, or asthma
Best life insurance for students: Transamerica
Transamerica offers affordable rates, high coverage amounts, and attractive no-medical-exam options for people in their 20s and 30s, including students, young people with only a few years in the workforce, and people who use CBD or marijuana occasionally.
Best life insurance for young adults who smoke or vape: Transamerica
Transamerica offers some of the best rates available to people who smoke or recently quit smoking. Their application process is simple and often doesn’t require a medical exam — especially if you don’t have many health conditions.
2023 Policygenius award winner
MassMutual
4.9
All 50 states
Why we chose it
MassMutual’s whole life insurance plan provides a lifetime coverage option that builds cash value with the potential to earn dividends.
Pros and cons
Pros
Strong financial stability ratings
Higher potential for dividends for whole life policyholders than many competitors
Good customer satisfaction ratings
Cons
High term life premiums
Term life not available through Policygenius
Best whole life insurance for young adults: MassMutual
MassMutual’s whole life insurance policies offer some of the best dividends and cash value growth compared to other whole life insurance providers.
While cash value life insurance isn’t an ideal primary savings vehicle for retirement, it can offer alternative savings alongside traditional retirement accounts if you’ve already maximized contributions to a 401(k) or IRA. Whole life could also be a good fit for people with permanent financial obligations or coverage needs, like dependents who require lifelong care.
Summary of the best life insurance companies for young adults of 2023
Company | Policygenius rating | Best for | |
|---|---|---|---|
4.9/5 | Cheapest for millennials, young families | ||
5/5 | Overall, no-medical-exam | ||
4.9/5 | Whole life insurance | ||
4.8/5 | Term life insurance | ||
4.6/5 | People who smoke, students |
What is the best life type of insurance policy for young adults?
The best life insurance policy for young adults is one you can afford and one that offers enough protection for the right period of time.
During my time working as a licensed agent, most young adults I’d speak to would opt for term life insurance. The affordable premiums made adding a term life policy to their financial plan an easy decision, whether they were recently married, expecting to grow their family, or planning for the future.
A licensed agent can help you honestly assess your insurance needs while keeping your budget in mind.
Term life insurance
Term life insurance is the best type of life insurance coverage for most young adults. It’s the most cost-effective type of insurance and only lasts for as long as you need it.
When advising clients directly, I would recommend those who qualify to apply for an accelerated underwriting (AU) policy.
An accelerated underwriting term life insurance policy is a type of term life policy that doesn’t require a medical exam. For some millennials with few health conditions in their medical histories, this can be a good option for getting term life insurance on a shorter timeline.
Other life insurance options for millennials & Gen Z
Whole life insurance
Whole life and other types of permanent life insurance are good options for high-net-worth individuals who have already maximized contributions to other tax-advantaged accounts and are looking to use life insurance to diversify their investment portfolio.
These products can also be a fit for people with long-term financial obligations or coverage needs, like dependents who require lifelong care. Whole life insurance never expires and comes with a cash value that earns interest in addition to the death benefit payout.
Final expense insurance
If your personal situation keeps you from being approved for traditional life insurance, don’t fret — you still have options.
Final expense insurance is a type of permanent life insurance that offers a low coverage amount — usually up to $40,000 — but doesn’t require a medical exam for approval. This kind of policy is typically used to cover end-of-life expenses, like a funeral.
Some final expense life insurance policies only accept applicants age 45 and up — but others, like Transamerica, accept applications from all ages.
Living benefits
As you shop for life insurance, you might want to consider whether you need living benefits. Many policies have an accelerated death benefit rider included for free, but you can also add a living benefits rider to your policy. This kind of add-on gives you access to some of your policy’s death benefit while you’re alive, usually due to serious illness.
Which young adults don’t need life insurance?
The younger you are, the easier it is to lock in a cheap rate on a policy, but life insurance doesn’t make sense for everyone. You probably don’t need life insurance if you are:
A low-income earner whose budget simply can’t cover the cost of premiums.
Under the age of 18 — life insurance for children is purchased by parents, usually in the form of a rider on an existing policy.
More about finding your best life insurance policy
Life insurance for young adults FAQs
Is life insurance worth it at a young age?
Life insurance is worth it at a young age if you have financial responsibilities you’d need taken care of if you passed away, or people who depend on your income. Unless you’re a high-net-worth individual looking to expand your pre-tax investment options or somebody who requires lifelong coverage, term life insurance is the most affordable and convenient option for most people, including young adults.
Is life insurance cheaper when you’re younger?
All other factors aside, life insurance is more affordable the younger you are. This is because your mortality risk is lower when you’re younger.
Is term life insurance good for young adults?
Term life insurance can last up to 40 years and is many times more affordable than whole life insurance, so it’s the best option for most people, including young adults. And the sooner you buy coverage, the more money you’ll save down the road, since life insurance gets 4.5% to 9% more expensive on average every year you get older.
Should a young single person get life insurance?
Anyone who has shared debts or someone who relies on their income should consider getting life insurance. This might not be your case if you’re young and single, but if there are people in your life who may struggle financially in the event of your death, you should consider getting a life insurance policy.
