It’s 2018, and life insurance is not exactly rocket science.
But before we veer off, deep into the purpose of this piece, let’s give life insurance a little explanation.
Insurance is a risk-spreading mechanism that involves both the insurer and the assured. The insurer is usually a registered and regulated company.
Life Insurance is a contractual agreement whereby a party protects an individual against loss by the death of another individual. A Life insurance contract ensures the insurer (the insurance company) for a stipulated amount, agrees to pay a particular sum of money if an individual dies within the time limit of the policy. Receiving the said payment depends upon the loss of life of the other person.
In return for this protection or coverage, the assured/policyholder pays a premium for an agreed time range/period (the type of insurance policies varies).
Besides coverage in the event of one’s death, life insurance policies are generally used as savings and investment vehicles, and for retirement planning. An annuity is a typical example of a type of life insurance, seen as a long-term investment designed to provide an income during your retirement years.
The Best Life Insurance Policy for Adults
The best life insurance policy for young adults is a finicky subject. But we are advocates of individualism, and we believe that the best life insurance policy for you depends on your life insurance goals.
Let’s take a closer look at two popular coverage options:
Why Do Young Adults and Millennials Avoid Buying Life Insurance?
A staggering statistic reveals that 75% of young American adults don’t have life insurance. Why the risk?
Millennials don’t think life insurance matters. 4 reasons why young adults avoid buying life insurance:
2. An Apparent False Sense of Security
Studies reveal that millennials overestimate the cost of life insurance by 300% or more. They have a false sense of security and do not like to brood or think about the idea of mortality. The ascendancy of crowdfunding and fundraising initiatives like Gofundme.com, yourcaring.com has provided a sense of safety and security. Many young adults believe that they could harness or benefit from such systems in the event of a premature passing.
4. Home Saving
Many Young Adults are saving for a home instead. Jordan Russel, a digital marketing analyst from Toronto, gives his two cents; “We millennials have more important things to focus on than life insurance, at our young age.” Home saving isn’t exactly an easy feat and, just like any type of insurance, life insurance is seen as a gamble by millennials. Jordan reveals that once he settles his 20% down payment for a home, he can focus on life insurance and other basic needs.
5 Best Life Insurance Companies for Young People
2. MetLife Insurance
MetLife is also a strong and reputable insurance and financial service provider in the U.S and outside the U.S. They offer a range of policy options, including the standard term life and whole life coverage. They also offer survivorship plans, universal and variable plans.
MetLife offers a less complicated term life insurance package that does not require applicants to undergo a medical examination.
MetLife is a great choice for individuals with health-related issues that make a medically underwritten policy a tad too expensive.
4. Lincoln Financial Group
Lincoln Financial Group offers several coverage options including term and whole life, universal and variable. Lincoln operates a special option called combination life or long-term care. This option allows a policyholder utilize the universal policy as an alternative to purchasing a separate long-term care insurance policy.
The Lincoln Life and Annuity Company is highly revered and has consistently scored high marks from rating agencies such as earned high marks from rating agencies such A.M. Best, Standard & Poor’s, Moody’s, and Fitch.
5 Best Life Insurance Companies for Young People
Finding the most affordable life insurance coverage can be difficult, due to the large number of providers and vast diversity of the policies they issue. For someone who is new to the world of life insurance, it can be discouraging and confusing to try and learn all the terminology, and find the best companies for your needs.
So, to help you out, in this article we will outline some major types of life insurance, who they are best for, and of course, discuss the best life insurance companies for young people:
|Company||J.D. Power Rating||Customer Reviews|
|Mutual of Omaha||789||4.0|
|Lincoln Financial Group||781||3.9|
Why Buying Life Insurance Young is an Advantage
Age is just a number they say.
But when it comes to insurance, age is a number to be used to your advantage.
Buying a life insurance policy as a young adult can play to your advantage in several ways.
And yes, we understand that as a young adult, you have a to-do-list and buying life insurance sits at the bottom (if it is even on the list). But imagine the feeling of joy and assurance you will feel, knowing your loved ones are protected from unforeseen circumstances you probably aren’t thinking of right now.
Generally, Life insurance is less expensive for younger and healthier adults. It’s so cheap; it could cost less than a cup of coffee per day.
Over the lifetime of a whole life policy, you could accumulate a large amount of cash value that could fuel you through retirement and assure your trust and estate are in line when you are older. Your 20’s and 30’s are a time to grow, to experience, and more importantly; to plan for your future.
Best Life Insurance Companies for Young People – Recap
Yes, life insurance as a young adult is going to be cheap, much cheaper than getting it later in life.
You can take full advantage of the competition and get an affordable life insurance policy. Your age might be a number, but your age helps determine your life insurance rates. To put things in perspective, buying insurance at 25 is affordable than purchasing life insurance at age 55.
Oh, you work out and stay fit, but that does not stop you from aging and other health factors beyond the diameter of your weight plate.
The most significant factor that the life insurance will be interested in is your health. They will look for existing conditions and evaluate your overall health to determine your level of risk. If you have a medical condition or overweight, you will be considered high risk, and this will increase the amount you will pay for coverage. It’s important to Save up monthly premiums by improving your health before going for an evaluation.
Purchasing Life Insurance as a Young Adult
When it comes to purchasing life insurance at any age, speaking with an insurance agent is a very wise choice. This is particularly true when you are younger and need more financial guidance.
Life insurance agents can discuss your coverage options in depth, how they each pan out over the course of the policy, and can give you insight into deciding which life insurance policy is best for you. The best part? Speaking with an insurance agent is entirely free!
Take all the guesswork and overwhelming feelings out of applying for life insurance, and speak with a life insurance agent today to find the best life insurance rates for young adults.