Life Insurance Cost in your 20’s

Planning for your future | Life Insurance

How much will Life Insurance Cost in your Twenties?

Life Insurance Rates (2018)

 

Life insurance rates at 21 years old is probably not top of mind for most individuals.  You just got your chance to be able to legally walk into a bar and order a frosty beverage.  Life insurance is probably at the bottom of your to do list.  However, a few years down the road and many of you in this age group will be getting ready to tie the knot in marriage or even begin a family.

Not to mention your first home purchase or student loan your most likely sitting on.

Life insurance in your 20’s can be an excellent choice. It can also be a little intimidating if it feels like foreign language to you. No worries.  We are here to help. Life insurance rates at this age will be much more affordable and chances are you haven’t developed any major health conditions that will hurt your rates or ruin your chances at approvals.  Not just any approvals either.  Most likely approvals at the preferred rates or what we like to call “superman and superwoman rates” in the life insurance industry. Deciding which life insurance carriers are best for your needs can be a little bit confusing as well. 

No worries again, we got you covered.  Stay with us for a bit here..

When it comes to the best carrier to choose…Let Good Life Protection handle that aspect of the purchase for you.  Other questions also need to be considered ahead of time when purchasing life insurance at this age. 

Are you searching for term life insurance rates?  Maybe you’re even considering a whole life or permanent insurance.  Let’s dive in a little deeper and analyze your options in your twenties with life insurance.  How much is it going to cost you?  Which options should you consider?

More importantly what specific age are you when searching for term life insurance rates in your 20’s? To skip right to it, feel free to use our age navigation menu below.

life insurance in your 20's group

 

Term Life Insurance Rates (2018)

Cheapest Life Insurance options in your Twenties

Whole Life Insurance Rates in your Twenties

Cheapest Whole Life Options in your 20’s

Universal Life Insurance Rates in your Twenties

Cheapest Universal Life Options in your 20’s

Universal Life Insurance Rates for 20-Year-old Male

Universal Life Insurance Rates for 20-Year-Old Female

Universal Life Insurance Rates for 21-Year-Old Male

Universal Life Insurance Rates for 21 Year Old Female

Universal Life Insurance Rates for 22-Year-Old Male

Universal Life Insurance Rates for 22-Year-Old Female

Universal Life Insurance Rates for 23-Year-Old Male

Universal Life Insurance Rates for 23-Year-Old Female

Universal Life Insurance Rates for 24-Year-Old Male

Universal Life Insurance Rates for 24-Year-Old Female

Universal Life Insurance Rates for 25-Year-Old Male

Universal Life Insurance Rates for 25-Year-Old Female

Universal Life Insurance Rates for 26-Year-Old Male

Universal Life Insurance Rates for 26-Year-Old Female

Universal Life Insurance Rates for 27-Year-Old Male

Universal Life Insurance Rates for 27-Year-Old Female

Universal Life Insurance Rates for 28-Year-Old Male

Universal Life Insurance Rates for 28-Year-Old Female

Universal Life Insurance Rates for 29-Year-Old Male

Universal Life Insurance Rates for 29-Year-Old Female

So how much Life Insurance do you need in your Twenties?

                How much life insurance do you need?  This answer isn’t as black and white as it may seem.  A lot of factors go into deciding how much life insurance coverage to purchase.  Some of the questions Good Life Protection would have for you immediately would be…

Gurl for Life Insurance in your 20's

                How old are you currently?  The amount of life insurance a 21-year-old needs may be completely different than someone who is currently 29 years old.

 

  • How many dependents do you currently have?
  • How much credit card debt or student loans debt do you have?
  • Do you currently have a mortgage?
  • Are you the breadwinner or married?
  • How much income needs replaced if you were to pass away?

These items are important to consider.  You need to plan to have an adequate amount of coverage to ensure all these items are fully protected.  Once you have this area figured out and narrowed down to a more accurate coverage amount it’s time to decide…Even if you don’t have it narrowed down, let us help pinpoint a coverage amount that fits your needs.

Moving forward…

Are you looking for

  • Term Life Insurance?
  • Whole Life Insurance?
  • Universal Life Insurance?

In your 20’s, this is a tough decision for several reasons.  The first reason to consider the permanent side of life insurance in this situation is that you are in your twenties!  It’s never going to get cheaper than it is today.  But what the heck is permanent life insurance?  We will get to that.

For the most part, Good Life Protection typically urges against whole life insurance except in very select situations.   This happens to be one of those situations where it could be a fit depending on the needs of the individual.

Although whole life insurance could be a fit in this situation, we still believe term life insurance will most likely take care of your needs.  Especially when you consider a longer term.  It’s at least going to take you into your mid 40’s or early 50’s if you choose a 25 or 30-year term.

Term life insurance comes in the following durations…

  • 10-year level premium term
  • 15-year level premium term
  • 20-year level premium term
  • 25-year level premium term
  • 30-year level premium term

The Pros and Cons of Term Life Insurance

Life Insurance in your 20's Working lady

Most of the time, term life insurance is going to get the job done.  Plain and simple.  However, like we discussed before, reasons do exist to consider other options.

The top pros of term life insurance?

  • Budget friendly and affordable
  • Convertible to Permanent Insurance
  • Locks in a health rating
  • Possible to achieve higher death benefit protection at lower prices
  • Simple and easy to understand. You pay a fixed amount per month. When you die, your family or beneficiaries receive a fixed death benefit. Easy as 1,2,3.

The top cons of term life insurance?

  • Not permanent- It does expire at the end of the current term selected.
  • No cash value builds up potential. No additional investment portions. Just death benefit here.
  • Not as much leverage with creditors
  • Health conditions can develop after term policy expires

Example Term Life Insurance Rates

Age- 20-29 for Males and Females

We are going to display some example rates for ages 20-29 for term life insurance. 

To keep things simple- we are going to display rates at a preferred rating and non-smoker for males and females in the following coverage amounts over a 20-year level premium term duration.

MALE 100,000 250,000 500,000 1,000,000
$10.32
$16.22
$25.71
$43.75
Age 21
$10.32
$16.22
$25.71
$44.63
Age 22
$10.32
$16.22
$25.71
$44.63
Age 23
$10.32
$16.22
$25.71
$45.50
Age 24
$10.32
$16.22
$25.71
$46.38
Age 25
$10.32
$16.22
$25.71
$46.44
Age 26
$10.32
$16.22
$25.71
$46.44
Age 27
$10.50
$16.22
$26.14
$47.25
Age 28
$10.50
$16.22
$26.14
$47.25
Age 29
$10.50
$16.22
$26.14
$47.25
FEMALE 100,000 250,000 500,000 1,000,000
Age 20
$8.94
$13.24
$19.69
$34.26
Age 21
$8.94
$13.24
$19.69
$34.26
Age 22
$8.94
$13.24
$19.69
$34.26
Age 23
$8.94
$13.24
$19.69
$34.26
Age 24
$8.94
$13.24
$19.69
$34.26
Age 25
$8.94
$13.24
$19.69
$34.26
Age 26
$8.94
$13.24
$19.69
$34.26
Age 27
$9.03
$13.46
$20.12
$35.13
Age 28
$9.03
$13.54
$20.55
$35.88
Age 29
$9.03
$13.67
$20.55
$35.88

But why 20 Years for the Term Duration?

20 years is the most common duration for term life insurance.  In your 20’s, we highly recommend considering a 30-year policy.  Why?  You will only be in your twenties once.  Your ability to lock up cheap rates for a long duration will soon pass. How do we know this?  We speak to people every day that are upset at opportunity’s that slipped through their fingers at younger ages.

If it’s affordable, take the longer-term duration while you can.  In addition, displaying all rates for every duration would have been a bit much!

Why the Preferred Rating only?

In the later years of life, preferred ratings tend to be a bit more difficult to achieve.  In your 20’s however, not nearly as challenging.

At this age you probably haven’t developed many major medical health concerns.  If you are thinking you don’t qualify for the preferred rating and may fall a bit short, check out…

  • Life Insurance Rates with Medical Conditions

And for the next option…

Thinking about life insurance in you 20's

 

Pros and Cons of Universal Life Insurance

Universal Life Insurance can be a great financial planning tool in your 20’s.  It serves a more complex purpose and allows you to stretch the duration of coverage well past what term insurance can cover.

The top pros to consider with Universal Life Insurance in your 20’s?

  • Flexible Premiums
  • Ability to increase cash or increase death benefit
  • Ability to keep permanent coverage till your death
  • More affordable than whole life insurance

And for the negative feedback. The cons of Universal Life Insurance?

  • Higher price tag than term life insurance
  • Not guaranteed death benefit unless it’s a GUL (Guaranteed Universal Life)

Let’s take a glance at what Universal Life Insurance will cost in your 20’s.

Example Universal Life Rates

Ages-20-29- Male and Female- Non- Smoker

We will also keep things uniform and display the rates at preferred ratings at the following coverage amounts.

Pros and Cons of Whole Life Insurance

Let us be very clear about whole life insurance.  We are not huge fans of whole life insurance in most situations.  We believe term can accomplish what’s needed from a protection and income replacement standpoint.  We also believe that if permanent insurance is needed, a Universal Life insurance policy can meet your needs for less cost.

However, if a time does exist that whole life insurance makes sense, it’s now.  In your twenties it’s not going to get any cheaper for you.  The cash value has time to build some significant savings and the overall cost of insurance is at an ultimate low minus the ability to purchase whole life insurance on a newborn child.

Pros of whole life insurance?

  • Permanent Guaranteed Insurance
  • Forced Savings
  • Tax Benefits
  • Fixed Premium Rates
  • Participating policies (dividends earnings potential)

Cons of Whole Life Insurance?

  • Most expensive form of life insurance
  • Fees and expenses are typically higher with whole life policies
  • Death benefit is separate from cash value (You don’t get both)
  • MEC policies- careful to not overfund otherwise tax penalties may apply
  • And the Commissions! That’s right folks, the life insurance agent typically makes more commission on a whole life policy.

Let’s take a glance of some whole life insurance rates for ages 20-29.

These example rates will be at preferred rates, nonsmoker and for the following coverage amounts…

MALE 100,000 250,000 500,000
$69.65
$158.99
$308.61
Age 21
$71.93
$158.99
$308.61
Age 22
$74.29
$170.36
$331.36
Age 23
$76.56
$176.27
$342.74
Age 24
$76.56
$181.96
$354.11
Age 25
$78.93
$187.86
$365.93
Age 26
$82.08
$195.74
$381.24
Age 27
$85.31
$203.83
$396.99
Age 28
$88.46
$211.71
$412.74
Age 29
$91.61
$219.58
$428.49
FEMALE 100,000 250,000 500,000
$61.34
$138.64
$268.36
Age 21
$63.44
$143.89
$278.86
Age 22
$65.45
$149.14
$288.93
Age 23
$67.55
$154.18
$299.43
Age 24
$67.55
$159.43
$309.49
Age 25
$69.65
$164.68
$319.99
Age 26
$72.36
$171.46
$333.11
Age 27
$75.08
$178.24
$346.68
Age 28
$77.79
$185.02
$360.24
Age 29
$80.50
$191.80
$373.36

Other options for life insurance in your 20’s?

If none of the options we have covered so far fit exactly what you are looking for, it doesn’t leave much to work with. 

However, you can also explore the option of no medical exam life insurance.  This will in most circumstances come in the form of term life insurance.  Some whole life insurance policies also allow coverage without requiring a medical exam but often you would be looking at term life insurance.

Locking in your Rates

So, you decided to pass on life insurance coverage in your twenties.  What’s the big deal?

Maybe nothing.  Maybe more than you think.  Let’s look at two big issues.

Issue 1-  you now have a major medical condition which doesn’t allow you to gain any life insurance coverage.  In addition, your debts are higher, you have 2 additional children and you are the primary breadwinner.

End Result- No coverage to replace your income or take care of your family after a tragic vehicle accident resulting in you expiring. Family is now left with nothing to handle your final expense cost, that mortgage you left behind or any funding to provide for incoming expenses that are beginning to stack up rather quickly.  Not a good situation to leave your family in if you can avoid it.

May not sound like a major concern in your 20’s but most things we don’t want to purchase, that is typically how it works.  Comes around to bite you in the rear later.

Issue 2-  Your rates are now that of someone 10 years or older than if you would have purchased the coverage in your twenties.  May also not be the end of the world but when you factor in that you could have secured this coverage much cheaper per month, it may leave you a little frustrated when balancing your checkbook.

 

For rates at other ages and if you are one of the procrastinators we are talking about here, these may be of use to you.

Best Life Insurance Rates in your 30’s

Best Life Insurance Rates in your 40’s

Best Life Insurance Rates in your 50’s

Best Life Insurance Rates in your 60’s

Best Life Insurance Rates for Seniors

Best Non-Medical Life Insurance Rates

Best Life Insurance Rates for Smokers

Best Life Insurance Rates with Medical Conditions

But I have coverage through my Work? I don’t need Life Insurance!

Not a good motto to live by.  Employer sponsored life insurance is great for some additional cash to your beneficiaries if you meet your maker..

That’s a big IF for many reasons because employer sponsored life insurance is essentially useless in most circumstances unless you like living on the edge or at bare minimums. Employer sponsored life insurance can be comparable to carrying liability only on your vehicle insurance.

A reason exists as to why you have to carry full coverage on a vehicle that still carries an outstanding loan.  It’s just not enough to coverage to really do much of anything. Same goes for employer sponsored life insurance….

Not getting a whole lot here.

It’s not locking you into any guaranteed rates and you rarely have any control over the policy.  Your employer can choose to terminate coverage at any time and in almost all circumstances, it’s rarely portable.

If it is portable, it’s usually not at very favorable life insurance rates.  Experts and agents should always recommend you have a private individual policy completely unrelated to your work sponsored coverage. 

Don’t fall into the trap we see so often of people taking advantage of this coverage for most of their careers only to find out they are either leaving without the coverage or will end up paying a large premium dollar to continue the coverage at small death benefit amounts.

I have medical conditions; these rates won’t apply to me!

Having medical conditions can cause issues gaining life insurance coverage.  Your also probably not going to fit the rates of what we have displayed for your age group.

Sorry for that, it’s just difficult to display accurate rates for many health conditions.  However, we do help and specialize in with high risk medical conditions as well.

What’s the good news?

Coverage is still doable, it just takes an agent who understands underwriting and an agent who will put in a little extra work on your behalf.  If you have pre-existing medical conditions, talk to someone at Good Life Protection, we will do everything we can to ensure we get you covered at the best possible price.

Age is Very Important with Life Insurance.

You could be a marathon runner or an Olympic gold medalist which will probably allow you to achieve preferred rates or a very favorable health class.  You can also always choose your coverage amount.

One factor you can’t control if you wait too long is the price difference of getting older.  Age makes a big difference with life insurance.  Maybe not so much in your 20’s but it will come around to get you sooner or later.  You should always consider getting life insurance when protection is needed. 

You see….

Just because you may not need a lot of coverage right this second doesn’t mean you won’t very soon.  Don’t undercut coverage if it’s affordable.

Example- 27-Year-old calls and secures coverage for 100,000.00 at preferred rates at 17.00 per month on a 20-year level premium term policy.

3 years later he purchases his first home, has his first child and is newly married.  His wife currently doesn’t work and this individual makes roughly 75,000.00 per year. 

100,000.00?  It’s not going to do much and now all the sudden your old policy needs to be replaced or have a supplement policy added to it….

And….

Your three years older and the rates are going to be inflated accordingly.

Some would argue that this isn’t a huge deal but if you could have just locked up more coverage a few years prior for a lower cost over the next 15-20 years…. most would think that would have been the wiser financial decision.

To Sum Things Up

Our goal was to provide you some accurate life insurance rates for those of you just finishing your college degree all the way to those getting married and purchasing their first home or beginning a family.

You have several options at this age. All the options we covered could be a good choice. Speak to someone at Good Life Protection to narrow down your search even further.  Weigh your options carefully and with an independent agency who can provide you with the best possible rates. 

Life insurance is a product that goes by the famous quote “The Sooner the Better”.  Lock in your rates while young and healthy. Most would assume you are only reading this because you have people you care about.  You should always ensure you are leaving adequate coverage to protect the ones your ones you love the most.

If you need help determining how much life insurance coverage you really need, give us a call today.  We promise to keep things simple.  May the best prices win!

Great Tips for Affordable Rates