Life insurance is frequently considered to be a necessity as you age. However, young adults who intend to have children or who are already parents may find it to be of great value. Furthermore, because life insurance premiums rise with age, purchasing a policy when you’re young and healthy can help you lock in a reasonable price.
In this article, we have listed the top insurance providers. Kindly read through for more detailed information on these life insurance companies for young adults.
What is life Insurance for young adults?
Life insurance for young adults is a policy that can give them peace of mind by ensuring that if they die unexpectedly, their beneficiaries will be provided for. Whether a person has a partner and children or not, most of us leave financial responsibilities behind.
8 Best Life Insurance Companies for Young Adults
Below is the list of the top life insurance companies for young adults, and they include the following:
#1. Protective
Protective is our top recommendation for the best term life insurance company. This is because it tied for the lowest term rates of the companies we looked at and is one of only a few that offers 40-year term life insurance. It also provides a wide range of other policy types, so there’s a good chance you’ll find something that works for you.
PROS:
- Tied for the cheapest term life insurance
- Outstanding financial strength • Term lengths of up to 40 years • Same-day coverage for qualified applicants
CONS:
- Poor performance Customer satisfaction
#2. Mutual of Omaha
Mutual of Omaha is a financially sound company that offers a few unique products that set it apart, such as the return of premium (ROP) term insurance and a disability income rider. In addition, most policies include at least two accelerated death benefit riders, and the company received high marks for customer satisfaction.
PROS:
- Living benefits riders included many policies
- Uncommon riders are available
- No-medical-exam policies for qualified applicants
- Return-of-premium term life insurance
- Live chat
CONS:
- You Can’t apply online for term life insurance without having an agent
- There are no traditional whole life or variable universal life policies
#3. Banner Life
Banner Life distinguishes itself by providing some of the market’s longest terms and most competitive rates. Young families, from newlyweds to parents-to-be, can purchase 35- or 40-year term policy coverage at a low cost, which can help them protect numerous children until they are all financially independent.
PROS:
- Tied for the cheapest term life insurance
- The ability to stack coverage with term riders
- Term lengths of up to 40 years; and
- A generous term conversion period
CONS:
- Fewer riders than some competitors
- Fewer policy types are available
#4. Transamerica
Transamerica is one of the best life insurance companies for students, particularly freshmen. To justify coverage amounts, students must provide their projected post-graduation income based on their expected degree or previous work/internship experience.
Transamerica was chosen over other life insurance companies that provide student coverage because it provides students with the highest coverage amounts (up to $500,000). It’s an excellent option for those with large student loans or who expect to earn higher salaries after graduation. Transamerica also offers no-medical-exam life insurance options, allowing students to obtain coverage quickly.
PROS:
- Policyholders may be eligible for rate reductions if they become healthier.
- Provides coverage of up to $1,000,000 during application if you have a standard or a better application rating
- Premiums remain the same throughout the policy
- Has a term insurance plan that provides living benefits
- Offers a lower rate for term life plans than other insurers
CONS:
- Only young and reasonably healthy buyers are eligible for 20- or 30-year term life insurance policies.
- If you choose to renew your policy after your term has expired, it becomes a one-year term, which means your premium will continue to rise annually.
#5. Nationwide
Nationwide tops our list of the best life insurance providers for a variety of reasons, including its generous no-cost benefits, exceptional customer service, sound financial standing, and a simple no-exam application process for coverage up to $5 million.
The company has one of the broadest portfolios of life insurance products we’ve seen, and coverage is offered nationwide. You most likely won’t go wrong if you choose Nationwide for your life insurance needs.
PROS:
- great customer satisfaction ratings
- Wide range selection of policy types
- Most policy’s coverage includes three living benefits riders
- No-medical-exam policies available to qualified applicants
CONS:
- It Does not have a live chat
- Not the lowest pricing for term policies
#6. State Farm
Most life insurance policies only provide protection to the insured; the death benefit goes to your loved ones. State Farm provides a special substitute: you can cover every family member under a single policy rather than buying individual policies for each member.
Regardless of whether the life insurance policy is a term or whole life plan, you can accomplish this by including the Select Term and Child Term riders.
The Select Term rider offers coverage for 10, 20, or 30 years, depending on your coverage level. You can be sure that your costs won’t increase over time because the premium won’t change during the term.
PROS:
- Has a specific life insurance coverage policy for families
- Has a rider that provides coverage policy for your children until they’re 25
CONS:
- Their online quote tool is only available for term life insurance
- Policies coverages are not available in all states
#7. Northwestern Mutual
The variety of Northwestern Mutual’s products is its greatest asset. You’ve found the right place if you’re looking for an insurer that can provide a variety of permanent life insurance policies.
There are three whole life insurance plans available to you. You must make premium payments for the first two policies, 65 and 90 Life, until those ages, respectively. Your payments stop at that point, but your coverage does not. The third choice for whole life insurance is limited pay life. Depending on how much you’re willing to pay on an annual basis, you can decide how long you want to pay for coverage. Between 10 and 30 years are available.
PROS:
- Northwestern doesn’t require a second medical exam if you are converting from term to permanent insurance
- Offers multiple types of permanent life insurance coverage (whole life and universal life)
- Offers a policy plan that combines term and whole life insurance
CONS:
- There is No online quotation tool and also no sales consultant available in person
- The only means to speak with a Financial Adviser is to go through their Find a Financial Advisor Page
- Approval for more complicated policies plan may take up to a month
#8. Haven Life
If you’re looking for a straightforward term policy, Haven Life’s online-first strategy, the easy application process, and the same-day approval process make it easy to like. The only type of insurance the company provides is a term, and those policies cannot be later changed to permanent insurance like whole life or universal life.
PROS:
- Simplified online application
- Decisions made the same day
- Offers no-medical-exam policies to qualified applicants
- Accepts credit card payments
CONS:
- Only offers term life insurance.
- It does not provide convertible term life insurance.
- There are only a few riders available.
Conclusion
People buy life insurance so that their dependents can be financially supported if they die. These could be siblings who are still in school, parents who are nearing retirement, or their children for young adults.
Life insurance rates are significantly lower when you purchase your policy when you are young. If you are considering a term life insurance policy, you are more likely to outlive it. You’ll also be less likely to have health problems, which means insurers will offer you lower rates.
FAQS
Q: What makes Protective a top choice for young adults?
A: Protective is a top choice for young adults because it offers some of the lowest term life insurance rates, outstanding financial strength, term lengths of up to 40 years, and same-day coverage for qualified applicants. However, it has received poor customer satisfaction ratings.
Q: Why is Mutual of Omaha popular among young adults?
A: Mutual of Omaha is popular among young adults because it offers living benefits riders, uncommon riders, no-medical-exam policies for qualified applicants, return-of-premium term life insurance, and live chat support. The downside is that you cannot apply online for term life insurance without an agent, and there are no traditional whole life or variable universal life policies.
Q: What makes Banner Life appealing to young adults?
A: Banner Life is appealing to young adults because it provides some of the cheapest term life insurance rates, the ability to stack coverage with term riders, term lengths of up to 40 years, and a generous term conversion period. The cons include fewer riders than some competitors and fewer policy types.
Q: Why do young adults choose Transamerica for life insurance?
A: Transamerica is a popular choice for young adults because it offers coverage for students up to $500,000, rate reductions for healthier policyholders, premiums that remain the same throughout the policy, a term insurance plan with living benefits, and lower rates for term life plans than other insurers. However, only young and reasonably healthy buyers are eligible for 20- or 30-year term life insurance policies, and renewing the policy after the term has expired can lead to increasing premiums.
Q: What are the benefits of choosing Nationwide for young adults?
A: Nationwide offers young adults great customer satisfaction ratings, a wide range of policy types, three living benefits riders included in most policies, and no-medical-exam policies for qualified applicants. The cons are the lack of live chat support and not having the lowest pricing for term policies.
Q: Why is State Farm an attractive option for young adults?
A: State Farm is an attractive option because it offers specific life insurance coverage for families and a rider that provides coverage for children until they’re 25. However, their online quote tool is only available for term life insurance, and policies are not available in all states.
Q: What makes Northwestern Mutual appealing for young adults?
A: Northwestern Mutual is appealing for young adults because it offers multiple types of permanent life insurance coverage, no second medical exam for term to permanent insurance conversions, and a policy plan that combines term and whole life insurance. The cons include no online quotation tool, no in-person sales consultant, and approval for more complex policies may take up to a month.
About Author
- I’m a firm believer that information is the key to financial freedom. On Coindecimal Blog, I write about personal finance and crypto.
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