What You Should Know
- Because life insurance gets more expensive as you get older, it's a good idea to purchase a policy as a young adult
- Most life insurance companies will offer competitive rates to young adults
- If you have any dependents or are planning to have children, purchasing a life insurance policy is a good idea
Depending on your age, you may never have considered the importance of life insurance. When you are just out of college and starting a career, there is a lot on your plate that you need to deal with.
But purchasing a life insurance policy as a young adult could be an extremely wise investment. But what are the best life insurance companies for young adults?
If you have college debt, have recently purchased a home, support someone financially, or plan to have children, a life insurance policy is a great way to ensure everything will be taken care of if you unexpectedly pass away.
It will probably not be difficult to find affordable life insurance for young adults if you search online. You can also refer to a life insurance guide for additional assistance.
The best way to make sure you find the right policy for you is to do your own online research and compare young adult life insurance rates between multiple companies.
Because you can buy young adult life insurance from virtually any life insurance company, you'll want to make sure you know what your rates could be before making any commitments.
In fact, you can use our free tool above to compare young adult life insurance quotes from multiple companies at once.
Just because you can purchase a life insurance policy as a young adult with virtually any company does not make all companies equal. There are some life insurance companies that will offer better deals to young adults.
Some of the best life insurance companies for young adults include:
- Brighthouse Life Insurance
- MassMutual Life Insurance
- Transamerica Life Insurance
- Prudential Life Insurance
- Pacific Life Insurance
- Protective Life Insurance
- Northwestern Mutual Life Insurance
- State Farm Life Insurance
- AIG Life Insurance
- Mutual of Omaha Life Insurance
- Haven Life Insurance
- USAA Life Insurance
- GEICO Life Insurance
If you examine these companies, along with a few other options included in the top 20 life insurance companies for young adults, you'll see that they offer flexible options and lower rates when compared to others.
You can always do more research on any company you are interested in. For example, if you want to know more about USAA's overall insurance options for young adults, you can read a USAA insurance review to learn more.
Before you can narrow down the company you'd like to use for your life insurance policy, you need to know what type of life insurance you're actually looking for.
You will want to decide first between a term life insurance policy or a whole life insurance policy.
A term life insurance policy will offer you coverage for a specific term length—typically anywhere from 10 to 30 years.
Your monthly rates during your term policy should never change, and you may even have the option of rolling your term policy over into a whole life insurance policy should you ever feel the need.
A whole life insurance policy is purchased for the purpose of covering you for your whole life. Whole life policies typically cost more than term policies, but you may be able to lock in the rate you receive for your policy as a young adult.
Whole life policies offer more bells and whistles when it comes to annuities and riders, and you could find some policy options that allow you to build up a cash value if you ever need it in the future.
The type of policy you purchase will depend on your needs and the needs of your loved ones.
For instance, if you are interested in setting up a policy now that will be yours for your entire life, you may be interested in the best whole life insurance for 18-year-olds.
But if you are looking for inexpensive coverage for a season while you figure things out, a term life policy is likely your answer.
As a young adult, you should be able to get extremely inexpensive rates on a term life policy. In fact, Carrie McKeegan of Greenback Expat Tax Services says, "With so many young people becoming freelancers or digital nomads, and traveling the world as they work, a life insurance policy can be inexpensive, plus it can provide so much peace of mind!"
If you can ensure your policy could be rolled over into a whole life policy at some point and that you can maintain cheap rates when doing so, a term life policy might be a great place to start.
As a teenager or person in your 20s, you may feel invincible. You have your whole future ahead of you, and it's an exciting place to be.
But you should never neglect your future needs and concerns if you have the ability and opportunity to handle them responsibly in the present.
Depending on where you are in life and what you want for your future, a life insurance policy could be a smart and necessary investment. And you will have a lot of options when it comes to where and how to purchase a policy.
If you have a job that offers group life insurance, that could be a great option for you. Christian Bogue of 365 Pronto adds, "However, just because life insurance may not be offered by your place of employment, it doesn't mean that it's not important. As we move to become more sustainable in numerous aspects of our lives, it's also important to look at the processes and products that can help sustain us both financially and otherwise."
Similarly, if you do some research online and find companies that offer exceptional rates for a term policy, you may want to take the opportunity.
You can always use our free tool below to compare life insurance companies for young adults and see how much you could save on a life insurance policy.