Best Life Insurance Companies for Young Adults

Best Life Insurance Companies for Young Adults

Young adults looking to start or grow a family can benefit from life insurance, as buying early can lock in lower premiums since rates rise with age. Investopedia reviewed 45 life insurance companies based on 70 criteria to identify the best options for young adults.

Best Overall, Most Affordable: SBLI

SBLI is ideal for young adults seeking simple, affordable term life insurance without complex features or permanent coverage. A healthy 26-year-old can purchase $250,000 of 30-year term life insurance for $15.67 per month on average. SBLI allows quotes, applications, and claims to be processed entirely online and receives fewer complaints than expected for its size.

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Pros & Cons

Pros:

• Low prices for term insurance
• Good customer complaint record
• Online quotes, claims, and applications available

Cons:

• Limited selection of riders
• No universal life policies

Best Term Life Insurance: Banner by Legal & General

Banner is suitable for young adults wanting low-cost term life insurance with the option to stay covered for up to 40 years. This extended coverage can provide long-term peace of mind and help avoid future rate hikes.

Pros & Cons

Pros:

• 40-year term policies available
• Low prices for term insurance
• Good customer complaint record
• Online quotes, claims, and applications available

Cons:

• Limited selection of permanent policy types
• Limited selection of riders

Best for No-Medical Exam Insurance: Penn Mutual

Penn Mutual is ideal for young adults seeking substantial life insurance coverage without a medical exam, offering up to $10 million in coverage.

Pros & Cons

Pros:

• High coverage limit for no-medical-exam coverage
• Low prices for term insurance
• High dividend rate for whole life policies
• Good customer complaint record

Cons:

• No online quote or application available

Best for Living Benefits: Nationwide

Nationwide stands out for its generous living benefits, which allow policyholders to tap into their death benefit if diagnosed with a chronic, critical, or terminal illness.

Pros & Cons

Pros:

• Living benefits included at no cost with many policies
• Excellent selection of policy types
• Good customer complaint record

Cons:

• No online claims
• No dividends on whole life policies
• Term rates aren’t the cheapest for young adults

Investopedia’s rankings are based on comprehensive research of 45 companies across dozens of data points, including cost, coverage, and financial strength. The research was conducted between June 6 and Aug. 1, 2024, with additional research between May 9 and May 12, 2025.