Best Life Insurance Companies for Young Adults

Protective has low rates, 40-year term lengths, and A+ financial strength

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91 Companies reviewed
55 Features considered
5 Awarded "Best of 2022"

Life insurance is often thought of as something you need as you get older. But it can be extremely valuable for young adults who are planning to start a family in the future or are growing their families. And because life insurance premiums increase with age, buying a policy while you are young and healthy can help you lock in an affordable rate.

Best Life Insurance Companies for Young Adults in 2022

Compare life insurance quotes on Policygenius from multiple providers before selecting a policy.

Best Overall : Protective

Investopedia's Rating
4.6

  • AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A+
  • Accepts Credit Cards: Yes
Pros and Cons
Pros
  • Tied for cheapest term life insurance

  • Superior financial strength

  • Term lengths up to 40 years

  • Same-day coverage for eligible applicants

Cons
  • Below average J.D. Power customer satisfaction ranking

Why We Chose It

Based on our review of 90 life insurance companies, we determined that Protective is the best life insurance company for young adults overall. It’s also our top pick for best term life insurance companies.

Protective has excellent pricing for term life insurance policies, which makes it a great option for young adults who need cheap term life insurance. Out of the “best” companies on our list, Protective tied with Banner for having the cheapest term life insurance premiums.

In terms of coverage, Protective offers term, whole, universal life (UL), indexed universal life (IUL), and variable universal life (VUL) insurance, as well as no-medical-exam policies. You can get a quote and apply online for term life insurance, and get same-day coverage if you meet the underwriting requirements. Protective’s term life policies can be converted to permanent coverage and are renewable once the term ends. Plus, you can choose term lengths of up to 40 years, which is the longest we’ve seen among the providers we reviewed.

While Protective has superior financial strength, with an A+ (Superior) rating from AM Best, the company falls short when it comes to overall customer satisfaction. In J.D. Power’s Individual Life Insurance Study, Protective scored 752 out of 1,000, which is below the industry average of 776 out of 1,000; it placed 16th out of 21 major life insurance companies. 

Runner Up, Best Overall : Banner

Investopedia's Rating
4.2

  • AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A+
  • Accepts Credit Cards: No
Pros and Cons
Pros
  • Tied for cheapest term life insurance

  • Option to stack coverage with term riders

  • Term lengths up to 40 years

  • Generous term conversion period

Cons
  • Limited policy types available

  • Fewer riders than some competitors

Why We Chose It

Banner tied with Protective for the cheapest term life insurance and also has term lengths up to 40 years. But it offers fewer coverage options and riders than Protective, which is why it took the runner-up spot for best life insurance company for young adults. 

But if you’re interested in a term life insurance policy, Banner is a great provider to consider. You can get more than $10 million in coverage, and term policies are convertible until the end of the term (or until age 70). They are also renewable if you prefer to extend term coverage beyond the original term. We like that you can stack your coverage by adding term riders to your base policy for 10, 15, or 20 years; stacking allows you to increase your coverage for specific periods in life, like when you’re paying off a mortgage, while maintaining an affordable base policy.

In addition, Banner offers no-medical-exam policies to eligible applicants, as well as online quotes, online applications, and same-day coverage for some individuals. 

However, you can only buy term life insurance and universal life insurance from Banner, and the company offers fewer riders for customization compared to many other providers we reviewed.

Best for Customization : Mutual of Omaha

Investopedia's Rating
4.4

  • AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A+
  • Accepts Credit Cards: Yes
Pros and Cons
Pros
  • Living benefits riders included with many policies

  • Uncommon riders available

  • No-medical-exam policies for eligible applicants

  • Return-of-premium term life insurance

  • Live chat

Cons
  • Can’t apply online for term life insurance without an agent

  • No traditional whole life or variable universal life policies

Why We Chose It

While many companies let you customize your policy, we chose Mutual of Omaha as the best life insurance company for young adults who want to customize their coverage. This is because the company offers a wide selection of riders and policy features, including less common ones, such as a disability income rider and a return-of-premium feature on some of its term policies. 

If you add a return-of-premium rider to your term life policy, you can recoup up to 100% of your premiums paid if you outlive the term. Plus, most policies include living benefits riders for terminal and chronic illnesses at no upfront cost; some policies include living benefit riders for terminal, chronic, and critical illnesses at no upfront cost. For these reasons, it’s also our top pick for best life insurance companies for living benefits.

Through Mutual of Omaha, young adults can purchase term life, universal life, indexed universal life, or final expense whole life insurance. The company doesn’t sell traditional whole life insurance or variable universal life insurance. In addition, some policies are available without a medical exam to eligible applicants. 

You can get a quote for term life insurance on Mutual of Omaha’s website, but you must apply through an agent. If you need help, you can reach an agent during business hours via phone call or live chat.

Best for Instant Issue : Haven Life

Investopedia's Rating
4.6

  • AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A++
  • Accepts Credit Cards: Yes
Pros and Cons
Pros
  • A++ rating for financial strength

  • Streamlined online application

  • Same-day decisions

  • No-medical-exam policies available to eligible applicants

  • Accepts credit card payments

Cons
  • Only sells term life insurance

  • Does not offer convertible term life insurance

  • Few riders available

Why We Chose It

Out of the best life insurance companies for young adults that we reviewed, Haven Life is our top recommendation for instant issue policies. In fact, it ranked third in our review of best life insurance companies of 2022.

The company’s no-medical-exam term life policy, called Haven Simple, lets you get a quote and apply online without needing to contact an agent. Plus, you can get coverage the same day; there’s no lengthy waiting period required and no medical exams.

Haven Life also offers a traditional term life insurance policy, called Haven Term, which may require a medical exam for approval. However, Haven Term provides up to $3 million in coverage, whereas Haven Simple only offers a maximum of $500,000 in coverage.

Both of Haven Life’s term life insurance policies (the only type of coverage it offers) are underwritten by MassMutual or its subsidiary C.M. Life Insurance company. MassMutual is a highly rated life insurance company with an A++ (Superior) Financial Strength Rating from AM Best, the highest score possible. And if you have any questions during the application process, you can utilize Haven Life’s live chat feature. Plus, the company lets you make credit card payments which is uncommon amongst the carriers we reviewed.

While Haven Life can be a good choice for young adults looking for term life insurance, there are drawbacks. Because Haven Life only sells term life insurance, you can’t convert your policy to permanent coverage when the term ends. In addition, Haven Life offers the fewest number of riders out of the “best” providers reviewed in our roundup. 

Best for Living Benefits : Nationwide

Investopedia's Rating
4.7

  • AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A+
  • Accepts Credit Cards: Yes
Pros and Cons
Pros
  • Excellent customer satisfaction ratings

  • Wide selection of policy types

  • Most policies include three living benefits riders

  • No-medical-exam policies available to eligible applicants

Cons
  • Does not offer live chat

  • Not the lowest pricing for term policies

Why We Chose It

Nationwide is our choice for best life insurance company for young adults for living benefits, and it’s our top pick for best life insurance companies overall. Most of Nationwide's life insurance policies include three living benefits riders—for terminal illness, chronic illness, and critical illness—at no upfront cost. 

For young adults who want the most policies to choose from, Nationwide is also a great pick. The company offers a wide selection of policy types, including term life, whole life, universal life, indexed universal life, and variable universal life. Plus, some applicants in good physical health may be eligible for life insurance without a medical exam for up to $5 million in coverage.

In terms of third-party ratings, Nationwide has excellent marks. In J.D. Power’s 2021 U.S. Individual Life Insurance Study, Nationwide was ranked second out of 21 companies. It received a score of 813 out of 1,000, which is well above the industry average of 776 out of 1,000.

It’s worth noting that Nationwide’s pricing for term life insurance policies were about average based on our research. We collected quotes for 30-year $250,000 term policies from 32 life insurance companies for males and females in excellent health aged 25, 40, and 55 years old.

But while price is important, it’s equally important to consider included benefits. Nationwide’s term policies automatically include chronic, critical, and terminal illness riders free of charge—you can get a quote online to see how much you will pay. 

Compare the Best Life Insurance Companies for Young Adults in 2022

Overall Rating Best For
AM Best Rating
AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations.
Term Life Sample Cost
Policy Types
Accepts Credit Cards
Reset All
Protective
4.6
Best Overall A+ $22.92/month Indexed Universal (IUL), Term, Universal (UL), Variable Universal (VUL), Whole Yes Get A Quote
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Banner
4.2
Runner Up, Best Overall A+ $22.92/month Term, Universal (UL) No Get A Quote
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Mutual of Omaha
4.4
Best for Customization A+ $28.38/month Final Expense, Indexed Universal (IUL), Term, Universal (UL) Yes Get A Quote
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Haven Life
4.6
Best for Instant Issue A++ $22.91/month Term Yes Get A Quote
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Nationwide
4.7
Best for Living Benefits A+ $26.25/month Final Expense, Indexed Universal (IUL), Term, Universal (UL), Variable Universal (VUL), Whole Yes Get A Quote
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Final Verdict

Based on our comprehensive review of the 90 life insurance providers in our database, Protective stands out as the best life insurance company for young adults overall. Protective and Banner tie for the cheapest term life insurance of the providers we reviewed, and both companies offer term lengths of up to 40 years. This feature may be particularly valuable for young adults with decades of income-earning potential ahead of them.

For policy customization and living benefits, Mutual of Omaha and Nationwide are each excellent picks. For same-day coverage via a streamlined all-digital application process, consider Haven Life. But before you choose a company to go with, collect multiple quotes and compare the coverage and benefits each company offers.

Frequently Asked Questions

What is the Difference Between Term and Whole Life Insurance?

There are two main categories of life insurance—term life insurance and permanent life insurance. Whole life insurance is one kind of permanent life insurance, but it’s not the only one. Universal life insurance, which is another common form of permanent coverage, is a more flexible type of whole life insurance.

One of the major differences between term and permanent life insurance is the length of coverage. Term life insurance provides coverage for a fixed number of years, whereas permanent life insurance provides coverage for your lifetime, as long as the premiums are paid. 

In terms of cost, permanent policies are usually more expensive than term life policies while you’re young, but term life rates increase with age and don’t build a cash value like permanent policies do.

How Much Does Life Insurance Cost?

The cost of life insurance depends on a variety of factors, like your age, overall health, insurance company, and the type of policy. In general, permanent life insurance is more expensive than term life insurance, and term life insurance premiums are cheapest while you’re young and in good physical health.

To better understand price, we can look at sample rates for term life insurance from some of the best life insurance companies for young adults. For a $250,000 30-year term policy from Protective, for example, a healthy 25-year-old might pay about $16 per month. A similar policy from Haven may cost closer to $18 per month, according to our research. 

When choosing a life insurance company as a young adult, cost isn’t the only factor you should consider. It’s important to look into other features, like what accelerated death benefit riders are available and whether term policies are convertible, as you compare companies and get quotes.

How Much Life Insurance Do I Need?

There are a few ways to figure out how much life insurance to get. For instance, you could purchase an amount of coverage equal to your salary multiplied by a certain number of years. For example, if you make $100,000 per year and want to ensure your family has financial protection for 10 years, you might choose a policy with a $1 million death benefit. 

Another option is to choose a coverage amount based on how much money your family would realistically need to continue the same standard of living without your income. Add up costs like your mortgage payment, health insurance premium, childcare costs, and food expenses. You should also factor in the cost of a funeral or final medical bills if you were to pass away.

If you still need guidance choosing a life insurance death benefit, an insurance agent can help you analyze your income replacement needs. Many life insurance companies provide an online coverage calculator for this purpose.

How We Chose the Best Life Insurance Companies for Young Adults

To find the best life insurance companies for young adults, we used a comprehensive methodology to review and compare providers. Before we started evaluating individual companies, we consulted third-party studies to learn what young adults want from a life insurance provider. Studies include J.D. Power’s 2021 U.S. Individual Life Insurance Study and the 2021 Insurance Barometer Study by Life Happens and LIMRA.

Next, we collected data on 91 life insurance companies. We evaluated these companies based on over 50 data points within the following categories:

  • Financial strength
  • Cost
  • Policy types and features
  • Policy riders
  • Customer satisfaction
  • Customer complaints
  • Online tools
  • No-exam options

Companies with reasonably-priced term policies and digital features like online quotes, online applications, same-day issue, and no-medical-exam options generally ranked highest. Companies with educational resources and live chat also did well.

Once we established which companies scored the best based on these and similar criteria, we favored companies with an AM Best Financial Strength Rating of A+ (Superior) or A++ (Superior). We omitted companies that received more than 1.25 times the expected number of consumer complaints averaged over three years, according to National Association of Insurance Commissioners (NAIC) complaint data.

Life Insurance for Young Adults
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. AM Best. “AM Best Affirms Credit Ratings of Protective Life Corporation and Its Key Life Subsidiaries.”

  2. J.D. Power. “2021 US Individual Life Insurance Study.”

  3. AM Best.” Massachusetts Mutual Life Insurance Company.”