Every Benefit of Life Insurance For Young Adults
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Young adults often misunderstand that life insurance is only useful to older people or those well-established in a career. However, there are some serious benefits to life insurance for young adults.
For assistance finding the best life insurance for young adults, contact Final Expense Benefits at (866) 786-0725 Monday through Friday, 9 a.m. to 5 p.m. ET. As a trusted life insurance brokerage, we can help suggest the best life insurance policy for your situation. Be sure to check out our free online quoting tool to get cost estimates for a plan.
The Benefits of Life Insurance For Young Adults
Life insurance for young adults has a few clear benefits. Chief among them is that while you are young and in presumably good health, you can lock in significantly lower monthly premium rates than if you had waited until you’re in your 50s or beyond.
You’ll also have a wider range of options. If you wait to purchase life insurance until you reach an older age, you’ll have a smaller list of options and may not be able to get certain insurance types. With all your choices, you can perfectly tailor your life insurance coverage to meet your and your family’s needs.
A huge advantage of getting a whole life insurance policy is that the cashout value of the policy increases, just like an investment account. Starting whole life insurance early compounds the account’s value over time. This will allow for a bigger cashout value and, depending on the type of account, can even add value to the benefit payout.
The Types of Life Insurance Available to Young Adults
Life insurance for young adults is often available in three major forms. Most policies will function the same for a young adult as an older applicant, just with the advantages above. The three best types of life insurance for young adults are term life, whole life, and final expense insurance.
Term Life Insurance
Term life insurance can be a great option for young adults. It’s the most recommended policy type at a young age because it’s excellent on a budget. You’ll still get the same payouts as a whole life policy, but at a significantly lower rate.
You must renew a term life policy once the term is over. Terms usually range from 10 to 40 years, but many policies also have the option to turn them into a whole life plan once the term ends.
Remember that many term life policies require a medical exam to qualify. Term life plans will often only accept younger applicants in good health, so take advantage of the opportunities these less expensive policies give.
Whole Life Insurance
Whole life insurance for young adults has significant advantages over a comparable term life policy.
The most enticing benefit is that you’ll be locked into a potentially low rate – for the rest of the policy’s lifespan. While that rate will almost always be higher than that of a comparable term life policy, there’s no guarantee that once your term plan ends you can keep the same rates.
You’ll be significantly older than when you first negotiated rates, which means you’ll be quoted for higher monthly rates. As term policies are stricter in their application processes, you may no longer be eligible for your previous policy.
A whole life insurance policy will also gain value over time, similar to a 401k or other investment accounts. Putting in cash from your premium payments will allow the policy to accrue value over time. This will increase its cashout value. Depending on the policy, your monthly payments could also increase the benefit payout’s value.
Final Expense Insurance
Final expense insurance, or burial insurance, can be a viable choice for young adults. While many plans are intended for older applicants and have minimum age requirements, finding a final expense life insurance policy that can work for young adults is possible.
Final expense insurance is a whole life policy, so you get all the benefits of whole life at a less expensive monthly premium rate. The payout will also be smaller, as its scope focuses on paying for funerary bills and similar end-of-life expenses.
Final expense insurance often requires a waiting period, typically two years, so getting it ahead of time can nullify that wait. Some policies with no waiting period are available, but these are accompanied by higher premium rates and typically are intended for older applicants.
Final expense insurance rarely requires a medical exam to qualify. It can be an attractive option for those looking for the benefits of whole life but constrained by a lower budget.
Selecting the right life insurance for young adults can be tough, so contact our expert agents at (866) 768-0725 Monday through Friday, 9 a.m. to 5 p.m. ET. They’ll help you determine the best option for your unique situation. Also, look at our free online quoting tool to get ideas for how much you would need to spend on a life insurance policy.
Things to Consider When Looking For Life Insurance for Young Adults
How Much Does Life Insurance For Young Adults Cost?
Life insurance can be inexpensive for young adults, especially term life policies. As a young and healthy applicant, you’d be eligible for very low monthly premiums, even for considerable coverage. Below are sample rates for non-smoking individuals with no preexisting medical conditions for final expense insurance and term life insurance.
Whole Life Insurance For Young Adults Prices
| Company | 25 y/o Male | 25 y/o Female | 30 y/o Male | 30 y/o Female | 40 y/o Male | 40 y/o Female |
|---|---|---|---|---|---|---|
|
$16 |
$15 |
$18 |
$16 |
$25 |
$21 |
|
|
Liberty Bankers Life |
$17 |
$15 |
$19 |
$16 |
$24 |
$21 |
|
Transamerica |
$17 |
$15 |
$19 |
$16 |
$25 |
$21 |
|
United Home Life |
$21 |
$19 |
$21 |
$19 |
$24 |
$22 |
These figures are estimates only, based on a $10,000 whole life final expense policy for non-smoking individuals with no preexisting medical conditions.
Term Life Insurance For Young Adults Prices
| Company | 25 y/o Male | 25 y/o Female | 30 y/o Male | 30 y/o Female | 40 y/o Male | 40 y/o Female |
|---|---|---|---|---|---|---|
|
$19 |
$19 |
$22 |
$23 |
$32 |
$28 |
|
|
$19 |
$19 |
$21 |
$21 |
$31 |
$31 |
|
|
$20 |
$15 |
$21 |
$17 |
$31 |
$26 |
|
|
$19 |
$18 |
$22 |
$21 |
$38 |
$36 |
These figures are estimates only, based on a $100,000 20-year term life policy for non-smoking individuals with no preexisting medical conditions.
Conclusion
Life insurance is a great option for young adults. Locking in a low premium rate when you’re in good health is great, and you can watch your policy’s cash value climb.
Determining the policy or provider that is right for you can be tough. There are a lot of options, and if you do it by yourself, you might not find the best policy or premium rate. Get in touch with our expert agents at (866) 786-0725 Monday through Friday, 9 a.m. to 5 p.m. ET. and be sure to use our free online quoting tool so that you’re prepared to confidently navigate the life insurance market as a young adult.
Frequently Asked Questions
What type of life insurance is the best for young adults?
The best life insurance for young adults is typically term life because it has lower rates while offering high payouts.
Why should a young adult get a whole life insurance policy?
Whole life insurance has a few benefits for a young adult. The policy’s cash value will increase over time, like an investment account, and the premium rate will be locked in at a lower rate.