The following term life insurance rates are for someone in their 20s in excellent health, with no other risk factors.
The life insurance quotes provided are from top rated life insurance companies rated by AM Best with an A- rating and higher.
- Term Life Insurance Rates in Your 20s
- Whole Life Insurance Rates in Your 20s
- Term Life vs Whole Life Insurance Quotes
- So Why Buy Life Insurance in Your 20s
- Top 5 Reasons to Consider Whole Life
Term Life Insurance Rates in Your 20s
Whole Life Insurance Rates in Your 20s
| Age | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| 20 | $83 | $151 | $293 | $580 |
| 25 | $92 | $178 | $348 | $689 |
| 30 | $105 | $216 | $422 | $839 |
| 35 | $121 | $267 | $522 | $1038 |
| 40 | $141 | $326 | $639 | $1273 |
| 45 | $173 | $401 | $789 | $1571 |
| 50 | $214 | $499 | $982 | $1959 |
| 55 | $270 | $629 | $1239 | $2473 |
| 60 | $324 | $802 | $1582 | $3158 |
| Age | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| 20 | $56 | $132 | $255 | $504 |
| 25 | $66 | $156 | $304 | $602 |
| 30 | $79 | $188 | $368 | $729 |
| 35 | $96 | $230 | $450 | $894 |
| 40 | $115 | $278 | $544 | $1081 |
| 45 | $143 | $350 | $685 | $1364 |
| 50 | $175 | $429 | $843 | $1681 |
| 55 | $223 | $549 | $1082 | $2158 |
| 60 | $280 | $700 | $1381 | $2756 |
For complimentary life insurance quotes, please give us a call today or enter your info in our quote forms below.
Term Life vs Whole Life Insurance Rates
So, why buy life insurance in your 20s?
Here at I&E, one thing that weโve found is that while โtechnicallyโ purchasing a life insurance policy as a young adult is a fairly simple process (for most), trying to get someone in their 20s to comprehend that one day they might die or they might end up suffering from an illness that commonly affects older folks in the United States such as:
- Cancer,
- Heart disease, or
- Diabetes,
Can be a bit challenging.
It can alsoโฆ
Be quite difficult for someone who is in their early 20s to fully understand just how quickly their life can (and probably will) change once they begin to take on many of the responsibilities that follow:
- Getting married,
- Having children,
- Purchasing a home,
Or transitioning from a โjob,โ to a career.
This is whyโฆ
Itโs so easy for someone in their 20s to simply decide to โput offโ purchasing a life insurance policy completely or end up purchasing a term life insurance policy as a โquick fixโ because they arenโt fully committed to the idea that they really do need to have a life insurance policy in place.
As a resultโฆ
Weโll often get a call from folks in their mid-30s either looking to purchase more insurance or to make changes to the life insurance policy that they purchased just a few years earlier because what they bought back then isnโt adequate for them now.
And in all fairnessโฆ
Itโs easy to see why this happens.
First of all, folks in their 20s typically donโt have the same โinsurance needโ as someone in their 40s, 50s or 60s.
Secondly, in most cases, these individuals wonโt have any health issues, so it’s hard for them to imagine that one day they may have difficulty being able to qualify for a life insurance policy.
And thirdโฆ
The allure of being able to purchase a term life insurance policy for very little money. and in some cases, without having to take a medical exam. may seem too good to pass up.
This is whyโฆ
We wanted to take a moment and discuss the differences between purchasing a whole life insurance policy vs term life insurance in your 20s.
โNote to the Readerโ
Youโll find that many (most) financial advisors will recommend Term Life Insurance over Whole Life Insurance because it is less expensive.
A common phrase that is often spoken by agents will be โbuy term and invest the differenceโ, and while in theory this approach might work, what we have found is that most folks donโt โinvest the differenceโ.
Plusโฆ
Sometimes, whole life insurance is just a better option for some than a Term Life Insurance Policy (See Top 10 Reasons when Whole Life is Better than Term).
Additionallyโฆ
When used properly, some dividend paying whole life insurance policies can be used as a โsavings accountโ as opposed to an โinvestment toolโ.
In cases like these where a traditional savings account essentially earns next to nothing, a whole life insurance policy could earn a guaranteed 3-4% plus potential dividends.
This is something weโll talk about later on in our discussion of why purchasing a whole life insurance policy in your 20s might be your best option versus term life.
And yesโฆ
It is true that life insurance agents will typically earn a larger commission for selling a whole life insurance policy vs a term life insurance policy, which is why we do not try to โSELLโ anyone on any particular โtypeโ of life insurance.
All we do is present options to folks and let them decide what is the best life insurance policy for them.
And with that said, letโs now present our case on why purchasing a whole life insurance policy in your 20s might be your best bet.
Top 5 Reasons You Should Buy a Whole Life Insurance Policy in Your 20s
1. Term Life Insurance (typically) won’t last forever.
Because we offer a wide variety of different life insurance products here at I&E, including term life insurance, we know that one of the most common questions we get regarding term life insurance isโฆ
โWhat happens when the TERM ends?โ
This is because for many, itโs surprising to learn that if they purchase a term life insurance policy today and pay the premium for the next 20 years, at the end of it all, the policy will simply end and they will get nothing in return.
This is becauseโฆ
During all that time they were insured, but when the policy ended, that coverage ended as well.
Itโs sort of like auto insurance.
For exampleโฆ
If you purchased auto insurance last year, and didnโt have an accident, you really didnโt benefit from owning that policy.ย The only difference in this situation is that you can continue to keep your auto insurance, while with a term life insurance policy, once it ends, itโs over.
Nowโฆ
There are some term life insurance policies which will contain a clause stating that it is guaranteed renewable at the end of the original term.
Which is good, but what most folks wonโt tell you is that once your expired term life insurance policy goes into the โguaranteed renewableโ clause, the fixed price that you have grown accustomed to paying will likely change year after year because your โguaranteed renewableโ policy will only allow you to renew one year at a time.
Additionallyโฆ
The โchange in priceโ will typically be OUTRAGEOUS, because the insurance company will typically prefer that you reapply for another term life insurance policy, which will require you to either take another medical exam, or answer a series of medical questions, which could prevent you from being able to qualify for a new policy, leaving you one of two options:
- Option one: Go without insurance
- Option two: Continue to pay the โoutrageousโ premiums which will likely continue increasing every year!
This is whyโฆ
Seeing how, even if someone in their 20s decides to purchase a 30-year term life insurance policy, (the longest term commonly available), chances are they will โoutliveโ this policy and find themselves in their 50s either looking for a new life insurance policy or being forced to go without.
2. Being Young is Great!
Letโs face it, being young is great!ย After all, thereโs a reason why older folks are always saying things like:
- “I feel like Iโm in my 20s again!”
- “50 is the new 30.”
And weโre happy for these folks. But the truth is, it doesnโt matter how โgoodโ a 50-year-old feels, thatโs not going to change how a life insurance underwriter views their application.
Or to put it another wayโฆ
Chances are if you donโt have any major health issues currently affecting you, and you donโt participate in any potentially unhealthy lifestyle choices such as:
- Smoking,
- Unsafe driving, or
- Dangerous hobbies.
Your life insurance will never get any โcheaperโ than it will be if you choose to purchase today.
Which means that…
right now you probably have the best chance of locking into the cheapest whole life insurance rates that youโll ever be able to qualify for. So, doesnโt it make sense to lock in a rate that will last forever vs one that will go away in 20 or 30 years at precisely the time you need it the most?
3. Bad Genes
If youโre like many of us here at I&E who were always picked last in PE, the concept of having โbad genesโ might not seem too foreign to you.
But hey letโs face it, weโre not all built like George Burns who lived to be 100 and is credited with having smoked between 10 to 15 cigars a day for nearly 70 years.
Some of us know that in our family we may have an increased risk for:
- Cancer,
- Heart disease,
- Stroke,
- Diabetes,
- Alzheimerโs
In cases like these, where an individual may be well aware of the risks that he or she may face as they grow older, wouldnโt it make more sense to purchase a life insurance policy in your 20s that will last forever while your are young, then to risk purchasing a term life policy that could run out just when you really need it?
4. Already Sick
Letโs face it, not everyone in their 20s is perfectly healthy.
And while we here at I&E hope that anyone in their 20s who is already sick, or has some type of preexisting medical condition, does improve, hope is not a plan.
This is whyโฆ
In cases like these, it may make sense to try and purchase a whole life insurance policy while youโre young (assuming that you can qualify), so that if your condition were to worsen you wouldnโt need to worry about trying to qualify for coverage later on.
5. Whole Life Insurance as a finance tool
Lastly, a cash value whole life insurance policy can essentially be used as a forced savings account when your younger which will provide you with a variety of options to use later on in life.
It is here were you will often hear many financial advisors complain that whole life insurance isnโt a good investment because the returns are typically much lower than other โinvestment opportunitiesโ which is true.
Our take on it goes like thisโฆ
Your whole life insurance policy is not an investment but rather a โforced savings accountโ where the funds are readily available.
You should compare the return on your policy to what one would earn in a typical savings account in the bank.
Once you do this, you will begin to see some of the โhidden potentialโ that these types of life insurance policies can provide.
Now, in all fairness to term life, there are definitely times it makes sense.
For example, if you need a large death benefit to cover your mortgage or insurance the primary bread winner.
Another time term life makes a lot of sense is when using life insurance as collateral for an SBA loan.
In conclusion,
There you have our top 5 reasons why someone in their 20s might want to purchase a whole life insurance policy.
Now, we should note that despite these reasons, a term life insurance policy or some other type of permanent life insurance coverage might be the right option for you.
And weโre fine with that.ย
After all, our only goal here at I&E is to help you find the โbestโ life insurance policy for you.
This is why we work so hard to maintain relationships with dozens of different life insurance companies so that when the time comes to help you determine which one is โbestโ for you, weโre sure to have plenty of options.
We just get botheredโฆ
When certain life insurance brokerages automatically assume that a whole life insurance policy isnโt going to be right for you based on some pre-conceived opinion that they have regarding these โtypesโ of life insurance policies.
Soโฆ
If youโre ready to speak to a friendly and knowledgeable life insurance agent who is ready and able to go over all of your options with you and present these options to you in a stress free, no pressure way, just give us a call!
