How To Find The Best Life Insurance For Young Adults: A Quick Guide!

Written By : BenaVest

March 23, 2021

The Quick Answer


Before you go off and buy life insurance, make sure you complete this checklist: 

  • Decide between term life insurance and permanent life insurance
  • Decide your term lengths and coverage
  • Do some research on different providers to find the right one for you
  • Get life insurance early and stay healthy


Determine what type of life insurance plan you need.


Everyone has a budget in mind for how much they want to spend in life but not many plan to budget for a life insurance plan. Follow this quick guide to start your search for the best life insurance for young adults that fits your budget!


Term Life Insurance


Term life insurance covers you for a certain length of time. It is typical to see term life insurance policies available from 10 or 15 years to 20 or 30. During these “terms” if you were to pass away, your beneficiaries will receive a death benefit.


Term Life Insurance Pros and Cons


Pros Cons
  • Lower premiums when you’re younger
  • Beneficiaries will receive larger death payouts
  • Can be converted to whole life insurance
  • It’s temporary coverage
  • Must re-qualify at the end of the term
  • Difficult to qualify if there is a significant health issue
  • Premiums can go up every time you take out a new term
  • Policy accumulates no cash value


Permanent Life Insurance


Permanent Life Insurance, also known as whole life insurance or universal insurance, is a policy that will last for the entirety of your life. Permanent life insurance policies have a cash value that grows and shrinks over time. The cash value goes up as you pay for your policy premiums. Depending on the provider, you may be able to withdraw policy loans. Any unpaid loans will be subtracted from the death benefit.


Permanent Life Insurance Pros and Cons


Pros Cons
  • Builds cash value
  • Premium amount is fixed
  • More expensive than term life insurance considering the smaller death benefit


Deciding term lengths and coverage


A quick trick to find out how much life insurance you could need


The whole Idea of life insurance is to ensure your beneficiaries’ well beings. In the event that you pass away and will no longer be able to provide for them, you want them to have the time and financial stability they need to recover from your loss.


So in general multiplying your annual income by 5 or even 10 is generally a good guess for how much life insurance you’ll need. This is generally a good number to guess because it will provide 5 – 10 years worth of your income for your beneficiaries.


Picking the right term length


There are several term lengths to choose from depending on how long you would like to be covered, how much you would be able to pay, and what you want covered. Remember your life insurance is for your beneficiaries, depending on certain life events and your age, you may want a longer or shorter term. 

One example would be to make sure that your kids can get through college and be able to properly move out. So if your kids are new born, a 25 year term could be the one. If your kids are already 15 then maybe a 10 year term would be better.


Do some research to find the best insurance for you!


There are a few things to consider when doing your research. 


  1. Insurance rates
  2. Provider reviews
  3. The providers reputation


Insurance Rates Make sure you look through a few different providers to find out which one will provide you with the best rates and coverage. Some providers premiums can fluctuate in price. Others will offer a flat predictable rate. Decide which is best for you.


Provider Reviews Look at reviews for all the providers you are considering. This will give you a lot of insight into how good they are at what they do. You may even find out that a provider you really like has a very complicated process to get in touch with customer service, or maybe something else that bothers you a lot.


The providers reputation Do a little research on the providers reputation. You may find that some providers have been around for a long time and will likely continue to do so. However you may find some newer providers that are very innovative and have a completely streamlined online experience.


Getting life insurance early and staying healthy


Life insurance is meant to protect your beneficiaries from the unknown that happens to you on the day to day. So it pays to get it sooner rather than later. Another good reason to get life insurance sooner than later is that it will be cheaper the healthier and younger you are. 


On that same note, it is better to quit smoking if you do already. Life insurance providers take this into account and charge more if you are a smoker. They also find out if you have any dangerous hobbies that could be life threatening. It is wise to not lie about these habits and to conform to being healthier and safer because if your insurer finds out you were lying, your beneficiaries will not receive a pay out.