Best Life Insurance for Young Adults in 2025 (Your Guide to the Top 10 Companies)

The top pick overall for the best life insurance for young adults are State Farm, Northwestern Mutual, and New York Life. These companies offer competitive premiums, with average rates around $92 per month.

They stand out for their comprehensive coverage options, financial strength, and flexibility, making them ideal for young adults. With these providers, young adults can secure reliable life insurance that fits their budget and long-term financial goals.

Our Top 10 Company Picks: Best Life Insurance for Young Adults

Explore how these top providers can safeguard your financial future with tailored life insurance policies.

You can get free quotes for life insurance and secure financial protection for your loved ones by entering your ZIP code into our tool above.

The Best Life Insurance for Young Adults

The best life insurance for young adults tends to be affordable and flexible to accommodate their budget. Many young adults are establishing financial security and working on building savings. The best policy varies from person to person based on their needs and budget. On the bright side, life insurance is generally less expensive for young adults, so there may be a few policy options.

In general, term life insurance is the most inexpensive life insurance policy option. Even so, term life insurance rates can vary greatly depending on your age, gender, coverage amount, and more. Young adults with high-paying jobs might be more likely to invest in a permanent life insurance policy. These policies build cash value that accrues interest while term life insurance policies do not.

Universal life insurance policies, which are typically more flexible than whole life insurance policies, could also be an option.

Cost of Life Insurance for Young Adults

The cost of life insurance for young adults varies significantly based on the standard life insurance overage level and provider. For minimum coverage, monthly rates range from $92 with Mutual of Omaha to $129 with New York Life.

Life Insurance Policies Monthly Rates for Young Adults by Coverage Level & Provider

Full coverage rates are higher, with State Farm offering the lowest at $180 and Prudential the highest at $243. State Farm and Mutual of Omaha are notable for their lower rates, making them attractive options for budget-conscious young adults seeking reliable life insurance.

Other providers like Guardian Life, MassMutual, and Northwestern Mutual also offer competitive rates, though generally at a higher cost.

Choosing the Right Life Insurance Policy as a Young Adult

As noted above, the policy you want to invest in depends on your needs and budget. Your marital status could change your needs quickly. There are different life insurance policies for young adults depending on their situation, such as being single or becoming divorced. Also, do car insurance rates increase after getting a divorce? It’s important to talk to your agent about this topic.

For example, if you’re a single male with no dependents, you might prioritize a permanent life insurance policy as an investment. The cash value could add up over time for an emergency.

On the other hand, a married couple would need to consider how the death of one or both parents would affect the family financially. From there, it could be worthwhile to invest in a term life insurance policy with coverage that will protect their spouse and children.

The coverage amount depends on the parents’ income, debts, and assets. It usually helps to have a large death benefit to cover vehicle loans, a mortgage, and other significant debts that contribute to a high quality of life.

According to Debt.org, millennials average $87,448 in debt and make up most young adults. If you have any outstanding debt, it’s always a good idea to get enough coverage to pay off those debts.

Young adults may not have the extra monthly income for a permanent life insurance policy. If that’s the case, you can usually find convertible term life insurance policies to accommodate your budget and allow you to switch to a permanent policy in the future.

Young Adult Life Insurance Quotes

In most cases, young adults can find affordable life insurance quotes for under $20 per month, assuming there aren’t any major underlying health concerns.

Since age is a pricing factor, life insurance for 20-year-olds tends to be cheaper than life insurance for 30-year-olds, and so on. As shown below, the company you choose also plays a role in your prices.

20-Year, $250,000 Term Life Insurance Monthly Rates for Young Adults by Age & Provider

As you can see above, life insurance prices for young adult males can be reasonable. You may also notice that pricing varies from one company to the next. Nationwide, for example, charges higher rates on life insurance for 25-year-olds than 30-year-olds. Read our Nationwide insurance review for more information.

This might be a rare case, but it does emphasize the importance of shopping for quotes between different life insurance companies. Rates can also change based on the term duration.

30-Year Prudential Term Life Insurance Monthly Rates by Age, Gender, & Coverage Amount

With the sample rates above, you can see that women tend to pay less for life insurance than men. Additionally, five times the coverage costs only about twice as much. If you’re looking for better value, a higher coverage amount with a more extended coverage term could be worthwhile.

If you are a young adult looking for a life insurance policy, it’s almost always better to invest sooner than later. You can stop payments if you get into a financial crisis, but you could lose your coverage.

For parents, it could be worthwhile to pay extra on top of your rates to include a child rider. A child rider is a children’s life insurance plan designed to cover a child’s funeral expenses if they unexpectedly pass away.

Case Studies: Best Life Insurance for Young Adults

Understanding how life insurance can fit into your financial plans is crucial. These case studies illustrate different scenarios where young adults have chosen life insurance policies tailored to their unique needs and circumstances.

• Case Study #1– Financial Security: John, 25, wanted to secure his financial future and provide for his loved ones. He chose a term life insurance policy from State Farm with affordable premiums and specified coverage, ensuring his family’s financial well-being while staying within his budget.
• Case Study #2– Comprehensive Protection Plan: Emily, 28, sought a comprehensive life insurance plan with lifelong coverage and investment potential. She selected a permanent life insurance policy from Northwestern Mutual, which offered both protection and future financial opportunities.
• Case Study #3– Student Loan Safety Net: Recent graduate Mark, concerned about his substantial student loan debt, chose Transamerica’s policy designed for student loan protection. This policy provided a lump sum payout to handle his outstanding loans and avoid financial hardships for his family.
• Case Study #4– Growing Family Coverage: Sarah, 30, aimed for financial stability for her growing family. She opted for Guardian Life’s family life insurance policy, which protected her, her spouse, and their children, ensuring their financial future remained secure.
• Case Study #5– Retirement Planning: Entrepreneur David, 32, focused on wealth-building and retirement planning. He selected an indexed universal life insurance policy from Pacific Life, offering a death benefit and potential cash value growth tied to an index’s performance, aligning with his long-term investment goals.