Many millennials and Gen Zers believe in the common myth that young people don’t need life insurance.
It’s true that many young people can get by without coverage right now and that some folks never accumulate the obligations best addressed by life insurance.
But for most of us, our 20s and 30s are the ideal time to load up on life insurance. But it pays to pick the right company and find the best life insurance for millennials.
All the providers on this list offer term life insurance policies. A few offer permanent life insurance, such as whole life policies, too. Permanent life insurance is more expensive (even for millennials) but may build cash value and provide coverage well into old age if you keep paying your premiums.
7 Best Life Insurance Companies for Millennials
These are the best life insurance companies for millennials right now. Each does at least one thing well, such as keeping premiums super-affordable or offering high coverage amounts for affluent young people.
Our top overall pick, Policygenius, does well on several counts, and we believe it offers the best value for the most readers.
- Policygenius: Best Overall
- Sproutt: Best for Active Millennials
- Ladder: Best for No Medical Exam
- State Farm: Best for Whole Life Insurance
- Lemonade: Best for Low Premiums
- Fabric (by Gerber Life): Best for Families & Higher Earners
- Bestow: Best for Fast Approval
1. Policygenius: Best Overall
- AM Best rating: n/a
- Available term lengths: 10 – 30 years
- Minimum face amount: $250,000
Policygenius isn’t an insurance company but instead is an insurance broker providing quotes for many life insurance policies at once. With a few pieces of information, you can get free life insurance quotes from the best life insurance companies for millennials.
To get quotes on Policygenius, you only need basic personal identifying information, your total household income, and information about your health and lifestyle. If you’re applying for a life insurance policy with a spouse, you’ll need his/her information, too.
This information will get you basic quotes for life insurance. Once you choose a company and policy to move forward with, you may have to undergo a medical exam or at least a phone interview to discuss your health history.
The great thing about Policygenius is you can shop around but only have to complete one application. The service is free, and it saves you a lot of time, plus you get the Policygenius representatives to help you.
Pros
- Save time and money
- Options for term and whole life insurance
- Access to many insurance quotes with one application
Cons
- You may still need a medical exam
- You still have to work with the chosen insurance company to obtain the policy
2. Sproutt: Best for Active Millennials
- AM Best rating: n/a
- Available term lengths: 10, 20, or 30 years
- Minimum face amount:
Sproutt is also a life insurance broker, but its focus is narrower. It’s built to serve millennials who live active, healthy lifestyles and don’t want to deal with time-consuming medical underwriting.
The secret lies in its proprietary Quality of Life Index (QL Index), which Sproutt uses to assess your risk using nontraditional factors like:
- Your exercise habits, including type and frequency of exercise
- Your sleep habits and quality
- Your work-life balance
- Your emotional health
- Your nutrition and eating habits
The QL Index doesn’t completely overrule your family or personal health history but can counterbalance potential negatives lurking in those data. Living a healthy lifestyle despite these potential negatives could help you secure a more affordable life insurance policy with higher coverage than you’d have found otherwise.
Sproutt makes it easy to secure quotes online within minutes, and you can apply directly with the insurer with the help of Sproutt agent. They offer no-exam and medically underwritten life insurance policies, including term, whole, and universal life insurance.
Pros
- Opportunities for many types of life insurance policies
- Access to many insurance quotes with one application
- Sproutt agents help you through the application process
Cons
- Premiums aren’t the lowest around
- May not be an option if you aren’t in great health
3. Ladder: Best for No Medical Exam
- AM Best rating: A-
- Available term lengths: 10 – 30 years
- Minimum face amount: $100,000
Ladder offers no-medical-exam policies with unusually high death benefits — up to $3 million, which is more than virtually all its competitors. It’s super-easy to apply for a Ladder policy, and well-qualified applicants often receive same-day approval decisions.
Because Ladder is an online-only life insurance company, they can pass along the savings to customers with lower premiums. Most people receive conditional approval within minutes and qualify for a no-exam policy that doesn’t require a phone conversation or in-person visit. However, an in-home medical exam may be required if you want a high-value policy for up to $3 million.
Pros
- Low premiums
- Fast and easy process that can be done online
- Option to scale down coverage without reapplying if needs change
Cons
- Medical exams required for higher-value policies
- Can be hard to qualify if you aren’t in great health
4. State Farm: Best for Whole Life Insurance
- AM Best rating: A++
- Available term lengths: 10, 20, or 30 year
- Minimum face amount: $25,000
State Farm is one of the few millennial-friendly life insurance companies to offer whole life insurance, a type of permanent coverage that builds cash value over time.
If you’re looking to build a store of value for your family over many years — something you can borrow against other than your home — then whole life insurance makes sense for you.
State Farm’s agency-driven model offers several other types of life insurance, too. You can find affordable term life coverage and whole or universal life coverage, both of which are types of permanent life insurance.
State Farm offers niche products like final expense insurance, which is usually reserved for older individuals. They also offer a return of premium coverage, which eventually reimburses you for the premiums paid.
Millennials can also take advantage of Instant Answer term insurance, a $50,000 policy for up to age 50 or a maximum of ten years. As a bonus, State Farm offers other insurance products, such as home, auto, pet, and renter’s insurance.
Pros
- Offers many terms
- Offers a wide selection of life insurance policies
- May get a bundled discount if you purchase other insurance policies, like home or auto
Cons
- May require a medical exam
- Must go through an agent and possibly deal with upselling
5. Lemonade: Best for Low Premiums
- AM Best rating: A
- Available term lengths: 10, 15, 20, 25, or 30 years
- Minimum face amount: $50,000
Lemonade is the most affordable life insurance company on this list. That’s saying something, given the sheer number of low-overhead, high-tech insurers competing for that title.
Lemonade’s process is optimized for low cost and convenience by offering an entirely online process that’s led by a smart chatbot asking questions about your health and lifestyle. The system does an automated review of your health records and doesn’t require a medical exam.
Premiums start at just $9 per month, though many Lemonade policyholders pay more. Your actual premiums depend on your age, health history, coverage amount, and other factors.
Like many insurance companies on our list, Lemonade offers other types of insurance, including homeowner’s, renter’s, auto, and pet insurance. They also offer coverage of up to $1.5 million, which is higher than some companies.
Pros
- Fast approval process
- Medical exam may not be required
- High coverage amount up to $1.5 million
Cons
- No insurance riders available
- May not qualify if not in great health
6. Fabric (by Gerber Life): Best for Families & Higher Earners
- AM Best rating: A+
- Available term lengths: 10, 15, 20, 25, or 30 year policies
- Minimum face amount: $100,000
If you have high coverage needs or expect to in the near future, Fabric is the best choice for you — no matter how old you are right now.
With Fabric, you can get up to $5 million term life insurance coverage. Higher coverage amounts require a medical exam, but that’s a relatively small price to pay to replace a lifetime of income.
The application process is 100% digital and includes will-making services and a secure online vault to help with your estate planning. Monthly premiums start at $14 per month, and you can add optional accidental death coverage up to $500,000 for an additional cost.
Pros
- Completely online process
- Reputable backing by Gerber
- May not require a medical exam
Cons
- Not available nationwide
- Only offers term life insurance policies
7. Bestow: Best for Fast Approval
- AM Best rating: A+
- Available term lengths: 10 – 30 years
- Minimum face amount: $100,000
Bestow’s application process is second to none. The typical applicant can expect to apply in about five minutes and receive a decision not long after that.
If you’re pressed for time and want to be done with the life insurance application process as quickly as possible, Bestow is for you.
Like its tech-driven competitors, Bestow’s underwriting process is fully algorithmic. It offers death benefits as high as $1.5 million with no medical exam required.
You can get a provisional quote within seconds and choose terms in five-year increments up to 30 years. Rates start at $11 per month, with a minimum of $100,000 in coverage.
Pros
- Fast approval
- Doesn’t require a medical exam
- Offers coverage up to $1.5 million
Cons
- Only available up to age 60
- No optional riders are available
How Does Life Insurance Work?
Life insurance is a legal contract between you and the insurance company. You pay a premium monthly for the contract, and the insurance company promises to pay a death benefit if you die while the policy is active.
If you die while you have the policy, the life insurance company will pay your beneficiaries, or the people you name in your policy, the death benefit. For example, if you have a policy for $100,000 and name your spouse as the beneficiary, if you die while the policy is active, your spouse would receive $100,000.
The best life insurance for millennials is usually term life, which I described above. However, if you’re looking for a place to invest money outside your retirement funds and want to build another nest egg, many insurance companies named above offer permanent life insurance policies.
These policies have the same death benefit as described above but also build a ‘cash value’ by investing a percentage of your premiums. As your cash value accumulates, you may be able to borrow against it rather than taking out another secured loan against your house or car.
No matter your life insurance type, it is only valid if you continue paying your premiums. Only choose a life insurance policy you know you can afford and that will benefit you and your loved ones financially in the future, which for most millennials means term life insurance.
Factors That Affect The Cost Of Life Insurance
Many factors affect the cost of life insurance, including the following:
- The amount of coverage: The higher the coverage, the higher the premiums, and vice versa
- Type of policy: Term life insurance is the most affordable; permanent life insurance policies cost more and are more complex
- Riders: Adding riders for additional types of coverage increases the premiums
- Age: The older you are, the higher risk you are for insurance companies
- Health: The better health you are in, the less risk you pose to insurance companies, so the lower the premiums they charge
- Gender: Premiums for males are typically higher than females
- Lifestyle and occupation: The riskier your lifestyle or occupation, the higher risk you pose to the insurance company and the more they charge
Life Insurance Tips For Millenials
Buying life insurance can be complicated. Here are some tips to make it easier.
- Focus on replacing your income and paying off debts: Life insurance should help your loved ones live a life they’re used to but without your income. Focus on the debts that need paying and the income replacement your family would need without you here.
- Shop around: Life insurance doesn’t have to be unaffordable. There are many affordable options today for millennials. Look for the most affordable policy that provides the coverage you need.
- Consider no-medical exam policies: As more companies go digital, it’s easier to find no-medical exam policies, making it easier to qualify for a policy with lower premiums.
FAQS
Life insurance is a complicated topic. It’s natural to have questions about how it works, what to expect when you apply for a policy, and how you can be sure your beneficiaries get your policy’s death benefit if you die during the term.
These are some of the most common questions that come up for millennials shopping for life insurance.
Why Should Millennials Buy Life Insurance?
Even if you don’t have a family or mortgage right now, there’s a good chance you’ll have those things or other expenses and obligations that could outlive you in the future.
If and when that day comes, your family will be relieved you have life insurance. And you’ll be happy you got life insurance at a relatively young age when your premiums are likely to be lower. The longer you wait to get coverage, the more you pay for the same amount.
How Much Life Insurance Do Millennials Need?
To determine how much life insurance you need, consider your known or expected future expenses and income.
You can use one of two methods to estimate your coverage amount.
The first gives you just enough coverage to offset your future expenses and not much more. These expenses might include:
- Your mortgage payments
- Your private student loan payments
- Additional child care costs your partner or other caregiver might incur if you die
- Your kids’ expected education costs
- Other debts or obligations you have or might have in the future
The second method aims to replace your expected lifetime earnings so your family can maintain its standard of living. That usually results in a higher coverage amount because you’re likely to earn more than your future expenses during your working life.
In either case, your calculation should account for inflation.
How Much Does Life Insurance Cost for Millennials?
Your life insurance cost depends on several factors:
- The type of policy you choose — a term life policy is much cheaper than the same amount of whole life insurance coverage
- Your chosen coverage amount
- Your age — a 25-year-old pays less for life insurance than a 30-year-old or 35-year-old, all else being equal
- Your personal health history
- Your family health history
- Your occupation and lifestyle, including unhealthy habits like smoking
Since age is important, millennials generally pay less for life insurance than older folks. That’s why it pays to get life insurance early, even before you think you need it.
What Type of Life Insurance Should Millennials Buy?
Term life insurance is a good choice for most millennials because it’s affordable, easy to get, and often available in high coverage amounts.
That said, whole life insurance is useful if you want a product that lasts indefinitely and builds cash value you can borrow against or use to pay your premiums.
Don’t worry about getting final expenses life insurance this early in the game. This small-dollar whole life insurance policy is appropriate for older folks with limited savings, but not so much for millennials. A term life policy should cover your funeral and burial costs with plenty left over.
How to Choose the Best Life Insurance Company as a Millennial
The most important thing you need to know is that it’s better not to wait, even if you’re expecting major life changes still to come. The younger you are, the less it costs for the same amount of life insurance coverage.
Of course, choosing the best life insurance for millennials that meets your needs is important. As you evaluate your options, consider:
- How much life insurance you need
- Which type of life insurance you prefer — term or permanent (or both)
- How much you can afford to pay each month
- Whether you’re OK with full medical underwriting or prefer a no-exam policy
- How long do you need coverage
With these considerations in mind and any others you or your financial planner believe are important to you, examine each of the companies on this list. Chances are you’ll find one that stands out.
Methodology
We use several important factors to assess the best life insurance companies for millennials and young people. Each relates in some way to the cost or overall utility of the policies reviewed here.
Cost
No one wants to spend more on life insurance than they think they should. Fortunately, young people generally pay lower monthly premiums for life insurance because their risk of death is lower.
Still, premiums for equal amounts of coverage vary from company to company. We’re fans of life insurance providers that keep premiums as low as possible without compromising their financial strength.
Coverage Amount
Your life insurance needs are different from your neighbor’s. One of you might be looking to cover your funeral expenses and burial costs and not much else. At the same time, the other might aim to replace their entire expected lifetime income — probably a seven-figure sum.
That being the case, we’re big on life insurance companies whose coverage amounts span a wide range — from $100,000 or less to $3 million or more.
Policy Type
Most companies on this list focus on term life insurance because it’s so affordable. That’s the best choice for most millennials. But we give bonus points to companies that offer permanent life coverage options too.
Policy Term Length
Since most millennials choose term life policies, term length is important. The typical maximum term length is 30 years, and many younger applicants use multiple policies to build life insurance ladders that step down coverage over time. Like this:
- 10-year term policy with $1 million in coverage
- 20-year term policy with $500,000 in coverage
- 30-year term policy with $500,000 in coverage
In the first 10 years, you have $2 million in coverage. In the 11th through 20th years, you have $1 million in coverage. And in the 21st through 30th years, you have $500,000 in coverage.
All else being equal, we prefer companies with wide enough policy term ranges to support this strategy.
Medical Exam Requirements
Millennials and Gen Zers tend to be healthier than older generations, mostly because they’re younger. But many still don’t want to go through the stress of full medical underwriting — meaning a medical exam, blood or urine draw, and invasive medical questions.
That’s why we’re fans of life insurers that make it easy to get life insurance without a medical exam.
Underwriting Process
Traditional life insurance underwriting has many twists and turns, most happening behind the scenes.
That’s why we look for life insurance companies that are as transparent as possible about how they evaluate applicants. We give special consideration to companies that offer:
- Discounts for healthy lifestyles
- Considerations for people with preexisting conditions, such as diabetes and mental health issues
- Rapid approval decisions for well-qualified applicants
- Clear guidance on application status
