Life insurance for 25-year-olds

Premiums will be at their most affordable when you're young and healthy.

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You’re young, healthy and just getting into the swing of your career. By locking in a low premium in your mid-20’s, you could save yourself thousands of dollars in your later years.

What is the best life insurance policy for 25-year-olds?

We recommend: Term life insurance

Term life insurance is the cheapest type of life insurance overall, and makes the most practical sense for the majority of people. At 25 years old you’re likely young and healthy, and life insurance providers will be more inclined to offer you exceptionally low premiums. Just make sure to plan for future financial obligations when determining your amount – even things that may seem far off like children or a mortgage.

A great pick: Policygenius

As a 25 year old you have options. That’s why we’re recommending Policygenius. Policygenius allows you to compare quotes from top-rated providers in one place, ensuring that you walk away with the absolute best rate you can get.

Get a quote on Policygenius
Protect your loved ones
Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.

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Which is the cheapest life insurance provider for 25-year-olds?

Let’s look at a $250,000 policy. Our research suggests that the cheapest life insurance provider for a 25-year-old nonsmoking man might be Protective Life at $12.90 a month. As with all types of life insurance, rates for a smoker climb higher. Banner Life (Legal & General) and William Penn tend to be inexpensive options for smokers at $36.25 a month.

For a 25-year-old nonsmoking woman, Banner Life and William Penn are affordable options with typical coverage at $11.52 a month, according to our research. If you smoke, they’re still among the best options, with rates increasing to $30.31 per month.

Monthly costs of a 20-year, $500,000 term life policy for a 25-year-old in perfect health

ProviderMale nonsmokerFemale nonsmokerMale smokerFemale smokerApply now
Banner Life$19.69$16.68$65.70$54.39
Protective Life$19.78$17.20N/AN/A
AIG$19.81$16.78$66.09$54.84
Pacific Life$20.31$17.00$65.87$54.40
Principal Life Insurance$21.00$17.68$86.63$68.25

What is the typical cost of life insurance for 25-year-olds?

The cost of life insurance is highly personalized, but two big factors that come into play are age and health. For most people, your 20s are the best time to shop around for a policy: It’s easy to qualify for low preferred rates.

The average cost of a $500,000, 20-year term policy for a nonsmoking man in perfect health is around $22.09 a month. Over 20 years, the price totals $5,302.63, with an expected value of $17,900.22. For a nonsmoking woman in perfect health, the same amount of coverage would be around $18.64 a month, coming to a total of $4,472.40 with an expected value of $9,918.60.

Case study

If you tick a bunch of the boxes above, you may want to look at higher coverage. At age 25, the difference between $250,000 and $500,000 or even $1 million in coverage is just a few dollars a month.

Let’s consider a 25-year-old nonsmoking man. Among the cheapest providers for a $250,000 policy are Banner Life and William Penn, which tend to charge $12.90 a month. If he wants to boost his coverage to $500,000, those same providers could charge $19.69 a month, a price difference of just $6.79. And to lift coverage to $1 million, it’s just $34.62 a month.

How much life insurance do I need around age 25?

To find your sweet spot, assess your financial responsibilities now and in the near future. Be honest about your needs, considering student loans, marriage, and children. You can use our calculator to help determine your needs.

What is my risk of dying in the next five years?

With time on your side, a typical, healthy 25-year-old is expected to live a long life. For a man, the risk of dying in the next five years is 0.70%, and the figure for women is lower at 0.29%.

Odds of passing away for a 25-year-old

Within the next…MaleFemale
Year0.13%0.05%
5 years0.70%0.29%
10 years1.48%0.67%
20 years3.58%1.98%
30 years8.21%5.00%

Life expectancy rates are merely calculations based on averages of mortality among specific population, gender and age groups. They do not predict the specific life expectancy of any one person - including you. If you're concerned about your overall health and risks, talk to your doctor or health professional.

When you’re looking at life insurance policies, you’ll notice that age significantly affects your rate. It’s far less risky for a provider to cover you at 25 than it is much later in life.

Bottom line

While your priorities as a 25-year-old might be establishing your career, paying rent and traveling, it’s worth looking at life insurance. When you’re young, fit and healthy, you can qualify for low preferred rates — and for most types of policies, those rates are locked in.

Though it can be cheap, life insurance is still an expense. If you decide to explore life insurance when you’re 25, shop around for the best policy with our comprehensive guide to life insurance.

Name Product Issue Ages Coverage Range Medical Exam Required State Availability
Bestow
21 - 54 years old
$50,000 to $1,000,000
No
Not available in New York
Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.
AIG
AIG
20 - 85 years old
$100,000 to $2,000,000
Depends on policy.
Products and product features may not be available in all states.
This well-established life insurance provider could offer you $250,000 worth of coverage for as low as $14 per month.
LadderLife™ Life Insurance
20 - 60 years old
$100,000 to $8,000,000
No
Not available in New York
Term life insurance with no policy fees and the freedom to cancel anytime. Simple application process that can get you approved for coverage instantly.
Policygenius
18 - 85 years old
$10,000 to $10,000,000+
Depends on provider and policy
All 50 states
Compare affordable quotes from 12+ A-rated life insurance companies side-by-side.
Haven Life
18 - 64 years old
$100,000 to $3,000,000
No
All 50 states
Customized term life insurance policies up to $3 million, no medical exam for certain applicants.

Compare up to 4 providers

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