• Skip to primary navigation
  • Skip to main content
Good Financial Cents®
Content is based on in-depth research & analysis. Opinions are our own. We may earn a commission when you click or make a purchase from links on our site. Learn more.
  • Make Money
    • Get Money Now
      • Ultimate Guide to Making Money
      • Need Money Now
      • Get Free Money Fast
      • Make Money Fast
      • Make $1K Per Month
      • Make $100 Per Day
    • Control Your Destiny
      • Self Employed Jobs
      • Make Money from Home
      • Hobbies That Make Money
      • How to Become a Freelance Writer
      • Small Business Ideas to Start
      • How to Become an Independent Contractor
      • Best Online Jobs
    • Passive Income
      • Passive Income Ideas
      • Multiple Streams of Income
      • Extra Income
      • Residual Income Ideas
      • Learn to Sell e-Books
      • Make Money on Facebook
      • Make Money on Tiktok
      • Best Online Survey Sites to Make Money
    • Explore More
      • Best Side Hustle Ideas
      • Make Money for Teens
      • Best Online Colleges
      • Best Jobs No College Degree
      • Become a Millionaire
      • Careers for the Future
  • Manage Money
    • Best Of
      • Budgeting Tools
      • Personal Finance Software
      • Best Cashback Cards
    • Company Reviews
      • Personal Capital vs Mint
      • Personal Capital Review
      • SmartAsset Review
    • Guides
      • Buy or Lease a Car
      • What is Liquid Net Worth?
      • Setting Financial Goals
      • How to Budget
      • Ways to Save Money
    • Explore More
      • How Much Car Can I Afford?
      • Best Auto Refinance Companies
  • Invest
    • Best Of
      • Best Short and Long-Term Investments
      • Best Low Risk Investments
      • Best Online Stock Brokers
      • Best Crypto Exchanges
      • Best Short Term Investments
      • Best Long Term Investments
      • Best Trading Platforms
      • Best Investment Apps
    • Company Reviews
      • Lending Club
      • Robinhood
      • M1 Finance
      • Ally
      • TD Ameritrade
      • Fundrise
      • Betterment
      • Etrade
      • Wealthfront
    • Guides
      • Investing for Beginners
      • Investing Small Amounts of Money
      • Investing in Real Estate
      • No Money Down Real Estate
      • Bonds vs Stocks
      • Peer to Peer Lending
      • Best Hedges Against Inflation
      • Safe Bitcoin Investing in 2023
    • Explore More
      • Bitcoin vs. Real Estate
      • Betterment vs Wealthfront
      • Investing for College Students
      • Stock Market Alternatives
    • By Investment Amount
      • How to Invest $100
      • How to Invest $1K
      • How to Invest $2k-$3k
      • How to Invest $5K
      • How to Invest $10K
      • How to Invest $15k
      • How to Invest $20K
      • How to Invest $30k
      • How to Invest $50K
      • How to Invest $100K
      • How to Invest $200K
      • How to Invest $500K
      • How to Invest $1M
  • Taxes
    • Best Of
      • Best Tax Relief Companies
      • Best Tax Software
    • Guides
      • Federal Income Tax Guide 2023
      • Taxes and Cryptocurrency
      • How to Do Your Own Taxes
      • How to Invest Your Tax Refund
      • Hiring a Professional Tax Preparer
      • Tax Tips for Freelancers
    • Company Reviews
      • TurboTax Review
      • H&R Block Review
      • Taxslayer
      • Tax Act
  • Insurance
    • Best Of
      • Best Life Insurance
      • Best Home Insurance
      • Best Auto Insurance
      • Cheap Term Life Insurance
      • Car Insurance For Young Adults
    • Guides
      • Term vs Whole Life
      • Different Types of Car Insurance
      • Average Cost of Car Insurance
    • Explore More
      • Life Insurance Over 50
      • Life Insurance Over 80
      • $1 Million Life Insurance
      • $2 Million Life Insurance
      • $3 Million Life Insurance
    • Company Reviews
      • Banner Life Insurance
      • Ladder Life Insurance
      • Health IQ
      • Haven Life
      • Policygenius
      • State Farm Auto Insurance Review
  • Retirement
    • Roth IRA
      • Best Places to Open a Roth IRA
      • Best Investments for Roth IRA
      • 7 Roth IRA Secrets
      • Roth IRA Conversion Guide
      • Roth IRA Rules
      • Roth IRA vs Roth 401k
      • Are Roth IRA Contributions Tax Deductible?
    • 401(k)
      • 401(k) Limits
      • 401(k) to Roth Rollover
      • Is 401(k) Enough for Retirement?
      • Maxed Out 401(k): What's next?
    • Traditional IRA
      • Traditional IRA Rules and Limits
      • Traditional IRA vs. 401(k)
      • Simple IRA Rules
      • SEP IRA Rules
      • How Much Do You Need to Start an IRA?
    • Explore More
      • SEP IRA vs. Roth IRA
      • 457 Plan for Successful Retirement
      • 401a Rollover Rules
      • How to Retire at 50
      • How to Retire at 55
  • Banking
    • Best Of
      • Best National Banks
      • Best High-Yield Savings Accounts
      • Best Checking Accounts
      • Best Savings Accounts
      • Best CD Rates
      • Best Money Market Accounts
    • Company Reviews
      • BBVA
      • Synchrony
      • Wells Fargo
    • Explore More
      • 9 Banking Alternatives for 2023
      • What is a Credit Union?
  • Home
    • Best Of
      • Best Mortgage Lenders
      • Best Mortgage Refinance Companies
      • Best Home Warranties
      • Best Homeowners Insurance
      • Best VA Loans
      • Best Mortgage Rates
      • Best Moving Companies
      • Best Home Security
    • Guides
      • Home Buying Checklist
      • Online Home Appraisal
      • How Much House Can I Afford?
      • First-time Homebuyer Programs
      • How to Get Approved for a Home Loan
      • Save Money When Building a House
      • How to Save for a Downpayment
      • When to Refinance Your Mortgage
    • Explore More
      • 15 vs. 30-year Mortgage
      • Home Warranty vs. Home Insurance
      • Veterans United Home Loan Review
      • Quicken Loans Review
      • HELOC vs Second Mortgage
      • DCU Mortgage Review
      • Costco Mortgage Program Review
      • USAA Mortgage Loan Review
  • Credit
    • Best Of
      • Best Credit Repair Companies
      • Best ID Theft Protection Services
      • Best Credit Report Options
      • Best Bad Credit Loans
    • Guides
      • How to Build Your Credit Score
      • How to Raise Your Credit Score in 5 Months
      • How to Dispute Your Credit Report
      • Hot to Remove Collections from Your Credit Reports
      • How Identity Theft Destroys Your Credit Score
    • Explore More
      • What is a Good Credit Score?
      • What is a Bad Credit Score?
  • Debt
    • Best Of
      • Best Debt Consolidation Loans
      • Best Personal Loans
      • Best Student Loans
      • Best Student Loan Refinance
    • Guides
      • What is Debt Consolidation?
      • How to Get Out of Debt
      • How to Get a Personal Loan Approved
      • How to Pay Off Student Loans Faster
      • Should I Consolidate My Debts?
      • Should I File for Bankruptcy?
    • Company Reviews
      • Credible
      • Sofi

Life Insurance for Millennials

https://www.goodfinancialcents.com/wp-content/uploads/2019/07/MG_5503-150x150.jpg
  • Written By:
    Jeff Rose, CFP®

    Jeff Rose, CFP®

    Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance...

    Read More
  • Updated: September 7, 2022
  • 6 Min Read
  • Advertising Disclosure

    Advertising Disclosure

    GoodFinancialCents® has an advertising relationship with the companies included on this page. All of our content is based on objective analysis, and the opinions are our own. For more information, please check out our full disclaimer and complete list of partners.

Quality Verified THE GFC® PROMISE
shield check icon
Quality Verified

GoodFinancialCents® partners with outside experts to ensure we are providing accurate financial content.

These reviewers are industry leaders and professional writers who regularly contribute to reputable publications such as the Wall Street Journal and The New York Times.

Our expert reviewers review our articles and recommend changes to ensure we are upholding our high standards for accuracy and professionalism.

Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments.

shield check icon
Why You Can Trust GoodFinancialCents®

GoodFinancialCents® partners with outside experts to ensure we are providing accurate financial content.

These reviewers are industry leaders and professional writers who regularly contribute to reputable publications such as the Wall Street Journal and The New York Times.

Our expert reviewers review our articles and recommend changes to ensure we are upholding our high standards for accuracy and professionalism.

Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments.

Whether you’re 18 or rounding out the millennial bracket in your late 30s, it’s time to consider what financial state your parents, spouse, kids, or business would be in if you were to die unexpectedly today.

People like to give millennials a bad rap, accusing you of being blissfully ignorant of the harsh realities of life, but I know better.

In fact, I can see why millennials shy away from life insurance. Life insurance isn’t always popular in the millennial crowd because it’s shrouded with misconceptions.

Let’s put those misconceptions to bed though, shall we? Read on for everything you need to know about purchasing life insurance in your younger years.

Why Millennials Avoid Life Insurance

Reason #1 – It’s morbid and you’re young and healthy.

When you’re young and in love, chasing your dreams, and living your best life, the last thing you want to think about is tragically dying before your time.

I get it. Along those lines, most of us don’t walk around with a cloud over our heads expecting death to come for us at any moment.

When you’re in your 20s, fit, and fabulous, it’s easy to assume you’ll stay that way.

Reason #2 – You’re busy.

You’re in the prime of your life and honestly haven’t put much thought into it, or you made a mental note to follow up tomorrow… a month ago.

It’s hard to prioritize a decision like purchasing life insurance amid all the chaos of classes or kids or work.

Reason #3 – It’s expensive.

Maybe you assume life insurance is out of your financial means. While you might acknowledge it’s a worthwhile purchase, you can think of a lot more pressing places to put your money (Hello, college debt).

Chances are, you fall into one of the categories above. Maybe you are young, healthy, busy, and strapped for cash, but those might be the very reasons you need to invest in life insurance.

Here are some truths for you:

  • Life changes unexpectedly.
  • Protecting your family should be a priority.
  • Life insurance doesn’t have to be expensive.
  • You can get life insurance on your terms.

Before we dive into reasons to buy life insurance, let’s look at a few reasons to hold off on life insurance as a millennial.

Should Millennials Buy Life Insurance?

Why Millennials Shouldn’t Get Life Insurance

This one is pretty straightforward.

If you’re healthy and meet the standards below, you could probably benefit more from placing your money elsewhere.

  • If you’re on the younger end of the millennial spectrum, you’re probably okay. The older you get, the more your health declines, financial pressures increase, and families grow. The earlier in life you are, the less likely you are to actually need it.
  • If you’re single and dependent, you don’t need it. Think of life insurance as a replacement for your income to sustain your family in your passing. If you don’t have a family to support, what’s the point?
  • If you’re debt free, you can forego life insurance. No debt for you means no parents, spouses, or other cosigners will be burdened in the event of your passing.
  • If you’re being enticed to buy a whole life policy as an investment, stop. There are plenty of surefire investment strategies with stellar returns that don’t dabble in life insurance. More on that later.

Why Millennials Should Buy Life Insurance

If the factors I just mentioned are reasons not to buy life insurance as a millennial, then their opposites are strong indicators you should.

Let’s take a little time to unpack the best reasons to purchase life insurance early in your life, and help make your decision easier.

  • You have a family to protect. If you have a hubby or wife and want to ensure they’ll be taken care of, life insurance is a great investment. Likewise, if you want to know your kids are provided for and can attend college no matter what happens to you, insurance is 100% worth it.
  • You’re in debt. College debt is the worst culprit for burdening millennials. Not all loans are forgiven if you die. If you’re still paying down a substantial amount, whether it’s an auto loan, an educational one, or any other type that can be transferred to your loved ones, you need to seriously consider life insurance.
  • You’re an entrepreneur. If you started a business you’re passionate about and want to ensure its success no matter what happens to you, insure it! Life insurance can protect your business and keep it flowing without you.
  • You want to save $ in the long term. As you’ll see in a minute, term life insurance premiums increase with every year you age. If you checked off some of the reasons I just mentioned and plan to purchase life insurance 10 years from now, you’ll save tremendously by starting today instead.

What Type of Life Insurance You Should Buy

I could spend thousands of words on all the types of life insurance on the market, but for your sake, I’ll keep it simple and tell you which one you should choose. Life insurance basically boils down to two categories: whole and term.

With a whole life insurance policy, you’re covered for the rest of your life and get interest with your payout. With a term life insurance policy, you purchase coverage for a certain amount of time, like 10, 15, 0r 30 years.

Although a whole life policy might sound more appealing based on that definition, it costs a pretty penny. If you’re the average millennial with the needs I mentioned above, you’re far better off purchasing a cheap term policy.  And at your age, you can probably skip the medical exam and buy your policy online.

Another convenience of a term life policy for millennials is the flexibility it provides. Chances are you’re buying your life insurance with a pretty specific time or amount in mind, and there’s likely an affordable term there to meet your needs.

Where You Should Buy Life Insurance

Knowing which life insurance company to pick can be tricky, but you’re ahead of the game with your newfound knowledge.

Insurance shopping can be a breeze; you don’t have to go through an agent, check long lists of insurance providers’ websites, or call them.

Ladder

If you do decide to purchase life insurance, you have a world of options. One of your best is a newcomer to the life insurance world, Ladder.

Ladder is the perfect provider for millennials as it offers instant coverage to young individuals in good health. You could have a policy in place in five minutes with affordable monthly premiums.

You simply complete a few questions on their website to find out if you’re instantly covered, need to undergo a medical exam, or are denied.

They’re also dynamic, meaning you can change the terms of your policy as your life changes, meaning you can increase your policy amount if you have kids to support or decrease when you pay off your student loans and other debts.

Ladder is flexible, hassle-free, and really affordable for young insurance shoppers.

Get A Quote From Ladder >>

Check out even more of the best life insurance companies in 2021, where you can find breakdowns of providers’ policies, quotes, and a term calculator.

Bestow

Bestow Life has created another hassle-free option for millennials who need life insurance.

Shoppers in their 20s and 30s could have $1 million in term life coverage within 5 minutes if they qualify for Bestow’s no-exam policy.

If you’re a millennial who is healthy, your application should fall squarely into Bestow’s wheelhouse.

In fact, the company, founded in 2016, doesn’t always sell life insurance to older applicants, and Bestow sells only term life insurance which is the most affordable option.

Bestow offers 2-, 10-, and 20-year term policies. Coverage maxes out at $500,000 for 2-year term policy which is designed as temporary insurance.

Bestow’s 10- and 20-year policies can give you $1 million in coverage.

Once you’re a customer, Bestow has easy ways to manage your policy online.

Get a Quote from Bestow>>>

How Much Life Insurance You Should Buy

Assuming you opt for term life insurance (good call!), you need to land on a term and amount to ensure you the coverage you need at a price you can afford. And how much you buy will depend largely on your specific needs from the list above.

Say you’re 25, $150,000 in debt, and you anticipate you will be for the next 15 years.

If no one’s relying on your income, you’re in good health, and you’re just trying to protect people from your debts, you could be paying under $15 in premiums, maybe less than you spend on your streaming services each month.

What if you do have a young family at home depending on your income? My advice is to multiply your income by 10x to determine your policy amount.

The terms are up to you, and once again, depend on your unique situation. If you just want to make sure your kids are afforded the opportunity to go to college, calculate how many years away their secondary studies are and cap your term there.

Just take an honest look at your expenses, your income, and how people would be affected if you died in the next 10 years, or 15, or so on and so forth.

Bottom Line

I know you’ve heard it a million times, but the financial decisions you make today will have a major impact on your finances in the future, and your loved ones.

Whether you’re a recent college grad up to your neck in student debt or a young parent hustling to secure your kid’s future, purchasing life insurance could be one of the best decisions you ever make.

And buying it today as opposed to a decade from now could make all the difference.

You’re at the perfect age to snag an affordable term life insurance plan to carry your family through whatever life brings, on your terms.

What are you waiting for?

Secure your future today!

Facebook LinkedIn Twitter

About the Author

Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. He was a financial planner for 16+ years having founded, Alliance Wealth Management, a SEC Registered Investment Advisory firm, before selling it to focus on his passion - educating the masses on the importance of financial freedom through this blog, his podcast, and YouTube channel.


Jeff holds a Bachelors in Science in Finance and minor in Accounting from Southern Illinois University - Carbondale. In addition to his CFP® designation, he also earned the marks of AAMS® - Accredited Asset Management Specialist - and CRPC® - Chartered Retirement Planning Counselor.

While a practicing financial advisor, Jeff was named to Investopedia's distinguished list of Top 100 advisors (as high as #6) multiple times and CNBC's Digital Advisory Council.

Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.

Facebook Twitter LinkedIn

You Might Also Enjoy

What Are the Consequences of Not Having Life Insurance?

What Are the Consequences of Not Having Life Insurance?

Best Homeowners Insurance Companies of 2023 - Updated for April

Best Homeowners Insurance Companies of 2023 - Updated for April

Life Insurance with Kidney Problems

Life Insurance with Kidney Problems

Best Extended Car Warranty for 2023

Best Extended Car Warranty for 2023

Ladder Life Insurance Review - Term Life Insurance with a Twist

Ladder Life Insurance Review - Term Life Insurance with a Twist

Sproutt Life Insurance Review: Is it Legit?

Sproutt Life Insurance Review: Is it Legit?

Leave a Reply

Cancel reply

  • Make Money
  • Manage Money
  • Invest
  • Taxes
  • Insurance
  • Retirement
  • Banking
  • Home
  • Credit
  • Debt
  • About
  • Contact
  • Facebook LinkedIn Twitter

© 2023 Good Financial Cents®. All Rights Reserved. | Privacy Policy | Disclaimer

All written content on this site is for information purposes only. Opinions expressed herein are solely those of AWM, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

All third party trademarks, including logos and icons, referenced in this website, are the property of their respective owners. Unless otherwise indicated, the use of third party trademarks herein does not imply or indicate any relationship, sponsorship, or endorsement between Good Financial Cents® and the owners of those trademarks. Any reference in this website to third party trademarks is to identify the corresponding third party goods and/or services.

x
x