Life Insurance for Young Adults & Millennials: It’s Cheap!


life insurance for young adults and millennials
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 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!

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.

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.

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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Jeffrey Manola

Jeffrey Manola

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 best rates for your life insurance coverage, but he also wants you to be well informed about the different types of life insurance options that are available. You will also find a significant amount of valuable information on the multiple life insurance companies that can provide you with coverage.

Jeffrey Manola is licensed to provide expert advice and help aid in the purchasing process of life insurance products. He is licensed with the National Insurance Producer Registry (NIPR) in the following states:

AL: 790866 AR: 14358927 AZ: 14358927 CA: 0K29801 CO: 531038 CT: 002536246 DC: 3000281706 DE: 3000190912 FL: W383615 GA: 3089339 HI: 482421 IA: 14358927 ID: 646048 IL: 14358927 IN: 3100885 KS: 14358927 KY: DOI-986908 LA: 758187 MA: 2045330 MD: 3000011601 ME: PRN252004 MI: 14358927 MN: 40427014 MO: 8428106 MS: 10519253 NC: 14358927 ND: 14358927 NE: 14358927 NH: 2434852 NJ: 1562332 NM: 14358927 NV: 3299018 NY: LB-1484031 OH: 1117369 OK: 100293583 OR: 14358927 PA: 740709 RI: 3000183893 SC: 14358927 TN: 2383399 TX: 1969337 UT: 648983 VA: 987464 VT: 3426230 WA: 947010 WI: 14358927 WV: 14358927

Never hesitate to reach out to Jeffrey if you need help. Top Quote Life Insurance is more than just an online quoting agency. We want to help you save money, protect your future, and earn your trust (888) 777-7574.

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Ready to Shop for Great
Life Insurance Rates?

Purchasing Life Insurance has never been easier

Or give us a call...888-777-7574