What is the best life insurance for young adults?

What are the benefits of buying life insurance young?

If you're young and on the fence about buying life insurance, here are a few reasons to consider getting covered now:

• Lower premiums: When you're young, you're less likely to have a medical condition that would make you riskier to insure. So, you can typically lock in lower life insurance premiums by buying a policy as a young adult.
• Future financial protection: Buying life insurance as a young adult can help protect your loved ones if you were to pass away unexpectedly. If you plan to get married, start a family, or buy a house, then life insurance may be worth it for you and your family's peace of mind.
• Financial flexibility: If you buy a whole or universal life policy, you'll have access to a cash value account that you can borrow against to finance larger expenses. However, building your policy's cash value can take a long time, so buying a cash value life insurance policy earlier in life gives it more time to accumulate before you may need it. Some term life policies may also be converted to permanent coverage later, depending on the insurance company.

Should teenagers consider life insurance?

Teenagers usually don't need life insurance since it's intended to replace a working adult's income, so their beneficiaries are financially supported if they pass away. However, if you have a child, teenage or otherwise, with a medical condition that may make it more difficult for them to get their own policy later in life, then it may be worth buying a policy on their behalf.

If you do buy a policy for your child, you would be the policy owner (responsible for making premium payments), while your child would be the named insured. You could transfer ownership of the policy to them once they're older and financially stable.

How affordable is life insurance for young adults?

Life insurance can be very affordable, especially if you're in good health and don't smoke. In fact, the average cost of a 10-year, $250,000 term life insurance policy from eFinancial is typically between $24 and $31 per month for a healthy 20- to 40-year-old.^*

Take a look at the average costs of term and whole life insurance and learn more about what impacts the cost of life insurance.

How can I choose the right coverage amount?

The right amount of life insurance for you, as a young adult, depends on your existing debt obligations, such as a mortgage, credit card debt, or student loans. You should also consider your current income and how many years your family would need to replace it before becoming financially stable.

Policy type is also an important factor. If you just need to cover your family's expenses and debts for a set time period, such as while your spouse or children are dependent on your income, then a term life policy may make sense for you. If you want to provide lifelong coverage and potentially leave your children or other beneficiaries with an inheritance, then permanent life insurance may be the better option. Learn more about term vs. whole life insurance.

Use our life insurance calculator to figure out how much coverage you may need, as well as other factors to consider.