Whole Life Insurance for Young Adults

Life insurance may not typically be something a young adult thinks about. It might be a benefit that’s offered through work or something they learned about during a life insurance solutions education presentation at work or school, but may not be of concern until they go through a major life event like getting married, having a baby, or starting a business.

Whole life can be a good insurance option because it typically stays in effect for an entire lifetime (as long as the premiums are paid). It can be a particularly good choice for a young adult who plans on getting married and having a family, or already has dependents who rely on their income.

More Affordable at a Younger Age

While the issue ages for whole life insurance can cover a wide range, a healthy young adult should typically be able to get a policy at a much lower premium than an older applicant applying for the same coverage. Life insurance coverage rates are based in part on age, because a younger adult has a longer life expectancy than an older adult, so their premium would be less expensive in most cases. 

Whole life premiums also usually stay the same for the duration of the policy, offering an economical way to help provide a financial safety net for the loved ones left behind in the event of an untimely death.

A Built-in Savings Vehicle

Whole life insurance can also help with saving money, since a small portion of each whole life premium is added to the cash value of the policy. The amount may seem insignificant at first, but if you obtain a policy at a young age, the balance will likely grow over time. Saving money within a whole life policy can be an efficient way for a young adult to build wealth and have some money set aside for when life throws them a curveball and they need help to pay some unexpected bills.

Unfortunately, people sometimes pass away sooner than expected. If the deceased has a whole life insurance policy, those who depended on them financially may be in a better financial position to weather the uncertainties that come after the death of a family provider. Some policies also pay out a portion of the death benefit when you’re still alive if you develop a serious covered illness.

Each person’s situation is different. When you are trying to determine how much whole life insurance makes sense for you, take a look at your income, debts, and what your dependents may need in the future. Also, be mindful that your financial situation could change over time because the premiums on whole life policies need to be paid for the entire lifetime as well.

A whole life insurance policy can offer young adults greater confidence by helping protect their loved ones (children, siblings, spouse, parents, etc.) if the unexpected happens. The beneficiaries of the life insurance policy can use the money to pay off loans and debts or as a financial cushion for later in life.

If you have any doubts about the advantages of purchasing a policy, take the time to research whole life insurance examples that highlight what these policies can do.

• Whole Life Insurance Age Limit