Updated: July 10, 2025
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Locking in a policy while you're young and healthy means lower premiums for decades, potentially saving you thousands of dollars compared to getting life insurance in your 30s and 40s.
Even if no one depends on your income now, a policy can protect future partners, children or co-signers from unexpected financial burdens.
Buying now lets you avoid coverage denials later. Health conditions like anxiety, high blood pressure or diabetes can raise rates or make you uninsurable.
Yes, if you have dependents, substantial debt or want to lock in a low rate by getting coverage while you're healthy. Your 20s is the easiest time to get approved, with many insurers skipping medical exams entirely. You can find life insurance as low as $15 per month in your 20s. Health problems like high blood pressure and obesity double between your 20s and 40s, making coverage harder to qualify for and more expensive as you age.
Getting insured early comes with major advantages: lower rates, easier approval and no medical exams. Below, we break down the main benefits.
Life insurance is cheapest when you're young and healthy. Life insurance premiums, or the monthly cost, increase as you age, sometimes dramatically. Locking in a rate in your 20s can save you thousands over the life of the policy. The table below shows how much more you might pay by waiting. A 25-year-old could pay $18,720 less than a 45-year-old for the same $500,000 term policy.
| 25 | $ 28 | $ 6,720 |
| 35 | $ 44 | $ 10,560 |
| 45 | $ 106 | $ 25,440 |
| 55 | $ 286 | $ 68,640 |
Buying life insurance in your 20s makes getting approved easier. Insurance companies don't share exact denial numbers, but nearly 90% of insurers use computer systems that favor young applicants. Your 20s are typically your healthiest years. That gives you an advantage, as insurers offer the best rates to applicants without pre-existing conditions. As you age, medical issues become more likely and can push premiums higher or lead to denials.
Health issues that can raise your rates or lead to denial include:
All these conditions are still insurable, but getting coverage is harder. Buying in your 20s helps you lock in coverage before these conditions develop and before they impact your rates or eligibility.
Most insurers offer an accelerated underwriting process for young applicants, allowing coverage up to $3 million without medical exams. This simplified process can approve your application in days rather than weeks. Compare this to applicants over 40 needing medical screening for coverage above $100,000.
A medical exam typically includes height and weight measurements, blood pressure checks, blood and urine tests, and sometimes an EKG or stress test, depending on age and coverage amount. The older you get, the more hurdles insurers place between you and affordable coverage.
Many policies purchased in your 20s include guaranteed insurability options, allowing you to increase coverage later without new medical exams. This means you can start with basic coverage now and add more when you get married, have children or buy a home. You're locking in your right to buy more insurance at healthy-person rates, even if you develop health problems later.
Most term policies also include conversion options, letting you upgrade to permanent coverage (typically whole life insurance policies explained below) without proving insurability again. These riders must be purchased when you first buy your policy and typically expire by a certain age, making your 20s the best time to get this option.
Certain life events and transitions in your 20s will increase the need for life insurance:
Shared financial obligations mean your spouse could struggle without your income. Coverage helps pay mortgages, living costs and joint debts.
Children create instant financial responsibility. Life insurance ensures they'll have money for childcare, education and daily expenses if you're not there to provide.
Buying a home is a major financial commitment that typically involves a mortgage. That 30-year mortgage doesn't disappear if you do. Life insurance protects your family from losing their home during an already devastating time.
If you have substantial debt, such as student or personal loans, life insurance can prevent this burden from falling on your loved ones. Some debts disappear when you die, but others get passed to co-signers or taken from your estate. If your parents co-signed your student loans, they become responsible for the remaining balance without life insurance protection.
If you're an entrepreneur or business owner, your sudden absence could have serious consequences for your business and any business partners. Life insurance for young professionals can provide the funds to help keep the business running.
Life insurance for young people who financially support aging parents or siblings can provide the funds to continue that support even if the policyholder is no longer around.
As a single parent, you are your child's primary or perhaps sole provider. Getting life insurance under 30 or even in your 20s can provide a financial safety net for your children’s future.
Each of these life events adds financial obligations that could become burdensome to others if you suddenly pass away. Life insurance provides a financial safety net, ensuring that these responsibilities are taken care of if you die.
Choosing the best type of life insurance for young adults depends on individual circumstances and financial goals. Whether opting for term or whole life insurance as a young adult, consider how these choices align with your current and anticipated needs to secure the most beneficial coverage.
Term life insurance provides coverage for a specific time period, typically 10, 20 or 30 years, and then expires. Think of it like renting coverage: you pay lower monthly premiums but don't build any cash value. If you outlive the term, the policy ends with no payout.
Why choose term: You need substantial coverage at an affordable price, especially when protecting young families or paying off debts like mortgages. Most 20-somethings can get $500,000 in coverage for under $30 monthly.
Best for: Temporary needs like mortgages, child-rearing years, or income replacement during your peak earning decades.
Whole life insurance provides permanent coverage that lasts your entire life, as long as you pay premiums. It combines a death benefit with a savings account (called cash value) that grows tax-deferred. You're buying coverage and building wealth simultaneously, but it costs much more.
Why choose whole life: You want guaranteed lifetime protection and want to use the policy to build cash value. The cash value can be borrowed against for major purchases or emergencies.
Best for: High earners who've maxed out other retirement savings, those with substantial assets to protect, or people who want to leave a guaranteed inheritance regardless of when they die.
Most 20-somethings should start with term insurance and can convert to permanent coverage later if needed. Term gives you maximum protection during your highest-risk years (when dependents rely on your income) at the lowest cost.
Many financial experts don't recommend whole life insurance for young adults because premiums are often 10 to 20 times higher than term insurance for the same death benefit. The investment component typically earns low returns (2% to 4% annually), which you could beat by investing the premium difference in index funds.
Whole life also locks you into decades of high payments, reducing flexibility when income may be unpredictable. Some people prefer whole life because it provides guaranteed coverage and cash value growth regardless of market conditions, plus it forces savings for those who struggle with investment discipline.
Purchasing life insurance in your 20s involves more than just finding any policy. You need coverage that fits your needs and situation. Here's how to find the right policy:
Calculate what you want your policy to achieve and what it should pay for if you die. Consider debts, dependents and long-term goals. A common rule suggests 10 to 12 times your annual income.
Research different insurers and policy types. Look for companies with strong financial ratings and competitive pricing. See our guide to the best life insurance companies and cheapest policies. Comparison shopping among three to five companies for the same policy is the best way to get lower prices.
After choosing a policy, you'll need to fill out an application. This usually involves providing personal information and undergoing a medical exam if required.
Carefully review all the terms and conditions before finalizing the policy. Ensure everything aligns with your needs and expectations.
After purchasing, you'll need to make regular premium payments to keep the policy active. Timely payments ensure continuous coverage.
In your 20s, pick a life insurance term length based on your long-term plans. A 30-year policy makes sense if you expect major commitments like raising a family or paying off a mortgage. If your financial responsibilities are more limited, a 20-year term will cost less.
Since you're early in your career, don't just look at your current income and debts when calculating coverage. Your salary will likely double or triple over the next decade, and your responsibilities will grow.
Consider these factors when determining the right coverage amount:
A practical approach: Start with 10 times your projected income in five years, then adjust based on specific needs and life goals.
Beyond age, several factors determine how much you'll pay for life insurance. Understanding these can help you find better rates and choose the right coverage.
Factor | Consideration |
|---|---|
Health status | Current health conditions like diabetes or high blood pressure increase premiums. The healthier you are in your 20s, the better rates you'll lock in. |
Term length | Longer terms cost more monthly but lock in rates longer. A 30-year policy protects you through peak responsibility years. |
Policy type | Term life costs much less than whole life. Higher coverage amounts mean higher premiums but better cost per dollar. |
Lifestyle choices | Smoking can double or triple premiums. Extreme sports like skydiving or rock climbing also increase costs. |
Occupation | High-risk jobs (firefighters, construction workers, pilots) mean higher premiums. Office workers get standard rates. |
Family medical history | Family history of heart disease, cancer, diabetes or stroke can raise rates even if you're currently healthy. |
Driving record | Multiple violations or DUI convictions signal risky behavior. Clean records help keep rates low. |
Gender | Due to longer life expectancy, women pay 5–15% less than men. |
Riders | Adding features like accidental death benefits or guaranteed insurability increases premiums but provides extra protection. |
Buying life insurance in your 20s lets you lock in rates based on your young, healthy profile before any of these risk factors change for the worse.
Several factors influence the cost of a life insurance policy in your 20s and may lead to high premiums. Here are several strategies you can use to lower these costs:
Regular exercise and a balanced diet can help reduce your risk of health issues, such as heart disease and diabetes, and lower your premiums.
Staying away from tobacco and limiting alcohol consumption will lower your rates.
A good driving record, free from violations or accidents, can also lead to lower life insurance costs.
If possible, avoid or limit participation in high-risk activities like extreme sports or motor racing, which can raise premiums.
Regular health check-ups show insurance companies that you're proactive about your health, which could lower costs. Demonstrating stable or improving health over time can be a major positive factor.
Don't overinsure yourself. While it's important to ensure your loved ones will be financially secure, consider what's really necessary in terms of payout. See our guide to how much life insurance you need.
Insurance companies have different underwriting criteria and pricing models. Compare policies from multiple companies before settling on one that offers the best life insurance for young adults at the most affordable rate.
Despite compelling reasons to get life insurance in your 20s, many young adults avoid coverage. Here are the most common reasons:
Understanding these obstacles helps explain why many young adults miss out on the advantages of securing life insurance early.
While securing life insurance for young adults can provide major advantages, consider some potential drawbacks. Weigh these cons against the benefits of young adult life insurance to determine if your 20s are the best time to get a policy.
Evaluating these factors will ensure that your decisions are well-informed and aligned with your long-term financial planning.
Buying life insurance in your 20s can be a smart long-term decision, especially if you're planning for major life events like marriage, parenthood or homeownership. Securing a policy early can lock in low premiums, protect your loved ones and safeguard your future financial obligations. If you're healthy and looking ahead, acting now can save you money and stress down the road.
Deciding whether to buy life insurance in your 20s involves considering various factors. Below are answers to some commonly asked questions to assist you in making well-informed choices.
Major life events, such as starting a family, getting married, buying a house or accumulating large debt, such as student loans, are reasons you may want to consider getting life insurance in your 20s.
Yes, if you have dependents, substantial debt or want to lock in low rates while you're healthy. Life insurance in your 20s costs less and provides financial protection for unexpected circumstances. Getting life insurance in your 20s depends on your needs, goals and financial situation.
Rates are much lower when you purchase life insurance in your 20s due to the lower risk associated with a younger age and generally better health. For example, a 20-year term life insurance policy with $500,000 in coverage costs around $28 per month, or $336 per year for a 25-year-old, while the same policy costs $44 per month, or $528 per year for a 35-year-old.
Obesity, high blood pressure, diabetes, heart disease and certain cancers can increase premiums or lead to denial. The earlier these develop, the more they'll affect your rates.
Factors impacting your policy cost include health and lifestyle, occupation, hobbies, credit score and family medical history. Maintaining a healthy lifestyle, keeping a good credit score and avoiding high-risk occupations or hobbies can help lower these costs.
Consider a long-term policy (20 to 30 years) if you have lasting obligations like mortgages or plan to support children through college. A short-term policy works if your responsibilities decrease in the next 10 years.
Term insurance provides temporary coverage at lower cost, making it suitable for most people in their 20s. Whole life offers permanent coverage with cash value but costs much more.
Your 20s or early 30s offer the best combination of low premiums and easy approval. Starting young locks in affordable rates before health issues develop.
Not immediately necessary, but buying young locks in the lowest possible rates and prepares you for future needs.
If you have dependents or large debts or want to lock in low rates for the future, getting life insurance for adults under 30 is a wise choice.
The benefits of life insurance for young adults include lower premiums and securing future insurability. The cons of buying life insurance for young people involve potential unnecessary costs if you have no dependents or financial obligations.
Many insurers offer no-exam policies up to $3 million for young, healthy applicants through accelerated underwriting. This makes getting coverage faster and easier than ever.
Yes, if you buy a guaranteed insurability rider when you first purchase your policy. This lets you add coverage during major life events like marriage or having children, even if your health changes.
Employer coverage is insufficient (usually one to two times your salary) and disappears when you change jobs. Having a portable policy that follows you throughout your career is better.
Your coverage and rates are locked in as long as you pay premiums. The insurer can't cancel your policy or raise rates due to health changes after approval.
Why Trust MoneyGeek?
MoneyGeek analyzed 1,488 life insurance quotes, along with customer satisfaction data, financial strength ratings and product offerings, to evaluate the best life insurance options for people in their 20s and determine which companies offer the most value for young adults.
Data Recency and Source
Coverage costs and provider details were updated in 2025. We collected quotes using standardized profiles of young adults and adjusted variables such as age (20 to 29), gender, health rating and coverage amount to reflect scenarios most relevant to people starting their careers.
Scoring System
MoneyGeek developed a proprietary scoring model to compare insurers across five weighted categories, emphasizing factors that matter most to young adults. Each company could earn up to five points per category. We then calculated an overall score out of 100. The weightings were as follows:
For young adult-specific policies, we adjusted the weightings to prioritize what matters most to this age group.
Term Life Policies for Young Adults
Customer Profile
MoneyGeek collected quotes using standard profiles of healthy 20-somethings: nonsmokers, various heights and weights within normal ranges, with "excellent" health ratings. We adjusted profiles to test different scenarios based on age (20-29), gender and coverage amounts typically purchased by young adults ($250,000 to $1 million).
We analyzed pricing trends to identify cost patterns and estimate projected rates across age groups within the 20s. These projections helped us assess the value of buying life insurance early and how costs change even within this young age bracket.
What We Measured
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
