Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide you with the ...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Nov 3, 2020

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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 insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different 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.

 What’s the similarity between homeownership and life insurance?

The answer…They both play integral roles in the American Dream. After all, having either one (or better yet, both) indicates a better quality of life.

That’s why those stories about millennials giving up homeownership are all but a myth. In fact, it’s thanks to them that the homeownership rating went up from 63.7% to 64.2% in 2017.

But what about life insurance for young adults? Again, contrary to popular belief, as many as 70% of millennials own some form of it!

All these show that 22 to 37 year old adults still place importance on life insurance. That this product is still affordable. With the right techniques, that is.

Don’t worry. We’ll let you in on the secrets to getting cheap life insurance, so keep reading!

Looking to compare life insurance prices? We can help. Enter your ZIP code to get free quotes from multiple insurers.

Why Young Adults and even Millennials Need Life Insurance

We get it. You’re young and you have a bright future. The last thing that you may want to think of now is getting old and thinking of what old age can bring.

We’re not here to scare you, but we also want you to think of the other end of tomorrow’s spectrum. Here are a few stats to put things in perspective:

What we’re saying here is that accidents can happen to anyone. They can take place anytime and can put anyone in serious safety and financial risk. Regardless of how healthy and fit a person is.

This is enough reason life insurance for millennials is as important as health insurance. You don’t want to find yourself in an accident, but it’s best to prepare in case it does happen.

Life insurance isn’t only about preventing financial problems from affecting your loved ones in the event of your passing. Yes, they can use the policy’s payout as an income replacement. More than that, they can use it to pay off debts, like emergency funds, and allow your children to continue school.

There’s even a type of life insurance with cash value features! Known as the “indexed universal life insurance,” this policy builds money that you can borrow or withdraw against. That means you can enjoy your hard-earned (and saved) money while you’re still around to enjoy it.

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Term Vs. Permanent Life Insurance

After reading about all the benefits of life insurance for young adults, you now want to know your options. There’s a lot to choose from, but the three primary ones include the following:

Term Life Insurance – Most affordable

With a term life insurance policy, you receive coverage for an agreed-upon length of time known as contract lengths. You can choose anywhere from a 1 year up to 30-year contract length. During the length of the contract, your premium is locked in and will remain the same price throughout the entire duration of the contract.

Universal Life Insurance – Most affordable permanent option

Universal life insurance is available in several different variations. These variations include current assumption, guaranteed no-lapse and indexed. What each of them has in common is that they are an affordable option for permanent life insurance coverage. Each also has the potential to earn cash value growth to be used if needed.

Whole Life Insurance – Most expensive but has guaranteed cash values

Whole life insurance is one of the most well-known forms of permanent life insurance coverage. With this coverage, you can expect a permanent premium, guaranteed death benefit as well as guaranteed cash growth and potential dividends.

How Much Life Insurance do you Need?

Life insurance needs will vary from person to person. It is truly impossible to recommend an appropriate amount of life insurance without knowing the individual’s personal background and life insurance goals. However, there are some simple methods that you can follow to help give you a starting point.

You need to consider your worth in terms of income and assets. But, you also need to ensure your income (less your usual expenses) can cover your coverage’s monthly premiums. Having kids and what you want for their future is also a critical consideration.

A good way to determine how much insurance to get is to calculate how much your dependents would need if they were to lose you today. It’s thought that many pushes to the back of their minds, but shouldn’t. After all, it’s one of the reasons many families end up with financial burdens when their breadwinner suddenly passes away.

In any case, ask yourself how much money your dependents need to remain financially afloat without your income. From this, subtract how much your surviving members would get from your assets and savings accounts.

For the purpose of having a good starting point, multiply that number by at least 10-12. Again, this is just a good starting point. Other potential factors should be taken into consideration such as college expenses, funeral expenses, medical debts, etc.

Life Pro Tip: Comparison is Key to Securing a Great Deal on Insurance

Like with any product or service, you should compare life insurance rates as well as different coverage options from various companies. There are so many options available and the internet is a great starting point for doing your own research.

For example, our website has a quote comparison tool that can provide you with instant life insurance rates. Also, since we are an independent life insurance agency, we work with over two dozen of the top-rated life insurance companies in the U.S.

By having as many options as we do, we are able to help our clients get the most affordable life insurance coverage based on their life insurance needs.

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Applying for Life Insurance is Millennial Friendly

Applying for life insurance coverage has never been easier. Life insurance has had significant changes over the past decade. This is not only in types of coverage you can now get, or newer features and benefits but also in the way you can apply.

Several life insurance companies offer an electronic application process eliminating the paper application. Then there are also many life insurance companies that offer what is called accelerated underwriting and it’s designed to be fast. It’s so fast that you can be approved for a new life insurance policy within the same day of applying.

This is all done with newer advance underwriting methods. Best of all, you can even be qualified without having to do a medical exam.

Life insurance has come a long way. The times of having to go and meet with an agent for a quote or to complete an application are not necessary. Of course, these options are still available if desired.

Final Tip: The Younger You Are, the Cheaper Life Insurance Is

In general, insurers base their rates on the likelihood of paying out an insurance claim. As such, many of them consider young adults in generally good health and to have a lower risk than their older peers. This “thinking” then gives millennials the chance to get much lower rates.

Remember, everyone ages every day. So, consider purchasing life insurance for young adults as soon as you can. This way, you can better prepare for anything that tomorrow (and all the days after that) may bring.

One last note, if you have any questions or need assistance on getting life insurance as a young adult or a millennial, please be sure to contact us.

Top Quote Life Insurance is an independent life insurance agency that can offer you both rates as well as coverage options from multiple life insurance providers.

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