Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

Benjamin Carr was a licensed insurance agent in Georgia and has two years' experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

Full Bio →

Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Mar 31, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right life insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider.

Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from top life insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

The Facts of Life

  • Affordable life insurance for young adults is much cheaper than middle-age and senior policyholders.
  • The “Return of Premium” rider can be a short-term investment for young adults.
  • Female life insurance rates are much cheaper than male life insurance.

Life insurance for young adults is cheaper than any age group in the life insurance industry. Young adults have higher chances of life expectancy and extended periods to correct health.

You can find the most affordable rates from the best life insurance companies using our guide. We’ll also explain how different life insurance coverages work, which companies are the best, and why young adults have cheaper rates.

If you want life insurance for young adults right now, enter your ZIP code in the FREE comparison tool above.

What is Life Insurance for Young Adults?

Getting life insurance while you still have your youth is a proactive measure that ensures that your loved ones are taken care of if you were to pass away.

However, most young adults can outlive their term life insurance policies. Young adults who invest in whole life insurance policies will have life insurance their entire life.

There are several life insurance coverage options available to young adult consumers. We’ll spend the next few subsections exploring some key life insurance policies for young adults.

What is Burial Insurance for Young Adults?

Most young adults are not concerned about burial insurance (also called Final Expense Burial Insurance or Funeral Insurance). If you’re a single parent or work a high-risk job, burial insurance is something you might want to consider.

Burial insurance can cap at $50,000. Today, funeral costs are around $9,000. Funeral costs could increase, and burial insurance coverage limits may expand in the next few years. As a younger policyholder, you can save thousands more per year when you get burial insurance.

Who Are the Best Term Life Insurance Companies for Young Adults?

Term life insurance is one of two common life insurance types in the United States. Basically, term life insurance is life insurance that lasts for a specific amount of time. Common term life insurance periods are 10-year and 20-year term life plans.

You can get term life insurance policies from any life insurance company out there. Here’s a list of the best life insurance companies and their average monthly rates.

Average Monthly Life Insurance Rates by the Top Companies
CompaniesAverage Monthly Life Insurance RatesA.M. Best Rating
Banner Life$9A+
Principal$9A+
Protective$9A+
Guardian Life$10A++
MassMutual$10A++
Haven Life$11A++
New York Life$11A++
John Hancock$11A+
Mutual of Omaha$12A+
Nationwide$13A+
State Farm$15A++
Allstate$15A+
Prudential$16A+
Northwestern MutualN/AA++
Pacific LifeN/AA+
PrimericaN/AA+
Get Your Rates Quote Now
Compare RatesStart Now →

They’re cheaper than whole life policies, but they don’t carry investment or savings possibilities like whole life or universal life insurance policies.

What is Universal Life Insurance for Young Adults?

If you want a life insurance policy that’s close to an investment, get whole life insurance like universal life insurance.

Under universal life insurance, a portion of your life insurance rates will go toward your policy, and the other part goes into a savings account that’s monitored by your life insurance provider.

You can hold onto universal life insurance as long as you want. It’s a whole life insurance policy, so it sticks with you until you cancel your policy or pass away.

What is Variable Universal Life (VUL) Insurance?

Universal life insurance won’t allow you to make investments, but variable universal life insurance (VUL) gives you the right to use the money you put into life insurance savings as an investment.

Enter your ZIP code below to compare cheap life insurance rates.

 Secured with SHA-256 Encryption

How much does life insurance for young adults cost?

Your life insurance is determined by age, gender, health, and the life insurance provider. You can guess why life insurance cost is based on age and gender, but why is health a contributing factor.

Most life insurance companies can measure your health by asking for a medical examination. These medical screenings will determine the class of your life insurance policy.

Life insurance is in five classes, which are Super Preferred (Preferred Plus), Preferred, Standard Plus, Standard, and Substandard.

Most young adults are between Super Preferred, Preferred, and Standard Plus. Therefore, they may not pay as much for life insurance per month. Let’s look at the average cost of life insurance for a 20-year term life policy.

Average Monthly 20-Year Term Life Insurance Rates by Age, Gender, and Coverage Value
Age and Gender$250,000 Policy Average Monthly Life Insurance Rates$500,000 Policy Average Monthly Life Insurance Rates$750,000 Policy Average Monthly Life Insurance Rates$1 Million Policy Average Monthly Life Insurance Rates$2 Million Policy Average Monthly Life Insurance Rates
20-Year-Old Male$18$29$40$47$86
20-Year-Old Female$15$22$30$35$64
25-Year-Old Male$17$28$39$46$86
25-Year-Old Female$15$22$30$35$65
30-Year-Old Male$18$29$40$47$89
30-Year-Old Female$15$23$31$37$69
35-Year-Old Male$19$31$44$52$99
35-Year-Old Female$17$26$36$43$79
Get Your Rates Quote Now
Compare RatesStart Now →

We included male and female rates to compare the cost for gender and to compare the cost of coverage values.

According to the Internal Revenue Service, any claim payouts you receive is taxable income.

The higher the coverage value, the more a policyholder pays per month regardless of gender. However, males generally pay more life insurance than females.

When should young adults get life insurance?

The earlier you start investing in life insurance, the better. An ideal age to get life insurance is between 25-35—life insurance appears to be cheaper within these ten years.

Take advantage of cheap life insurance costs to avoid anxieties for yourself and your loved ones.

Buying life insurance builds wealth and sets up a financial pillow for loved ones, like single moms and parents with disabled children.

3 Reasons Why Young Adults Should Get Life Insurance

Let’s break down the reasons why purchasing life insurance as a young adult is beneficial to you and those closest to you.

#1 – A Way to Build Wealth

Whole life insurance policies provide a way to build wealth while you’re still living. Universal life and variable universal life insurance policies will give you options to save money or invest.

If you get a “Return of Premium” rider, everything you paid into the term life insurance policy will be paid back to you in full.

#2 – Financial Reassurance for Loved Ones

High-risk and high-stress jobs increase your chances of death or disability. Build a financial pocket for those who could be left behind if you pass away. Life insurance can handle funeral costs, debts, and other expenses that may cause problems for those you love most.

#3 – Sets A Path to Deal with Debt

How does life insurance clear debt? There are tons of life insurance perks out there that will deal with debt. When the insured has passed away, debt collectors will turn their targets to the children, legal guardians, etc.

Life insurance claims have a chance to clear that debt if the coverage value is high enough.

Life Insurance for Young Adults: The Bottom Line

Ultimately, it won’t hurt to invest in life insurance. It’s an investment that will cost you up to $100 per month. Under the right circumstances, you turn life insurance policies into short-term and long-term investments.

Enter your ZIP code in the FREE online tool below to compare life insurance for young adults.