Life insurance for 25-year-olds |
Young couple

Buying life insurance as a 25-year-old

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

Proactively taking up a policy now could save you thousands later.

You’re young, healthy and just getting into the swing of your career. Life insurance may not have yet crossed your mind. If it has, you’ve probably thought: Do I really need it now?

But your mid-20s are a smart time to start looking at life insurance. In a nutshell, the younger and healthier you are, the lower it costs to insure you. By locking in a low premium today, you could potentially save thousands of dollars in the future.

And those savings can come in handy when your financial obligations — mortgages, marriage, children and business expenses — start to stack up.

Savings aside, life insurance policies offer peace of mind and protection for your loved ones when you’re no longer able to provide for them. Even if you don’t have a family now, you’ll get a sense of security and a financial building block for the future.

Why we like:

Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.

  • Offers on-the-spot coverage
  • No annual or cancellation fees
  • 30-day money back guarantee

Why we like: Bestow

Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.

  • Application takes less than 10 minutes.
  • Available to people ages 25 to 54-years-old.
  • Currently offered in 40 states.

Life insurance companies for 25-year-olds

Name Product Issue Ages Coverage Range Medical Exam Required
20 to 60 years old
$100,000 to $8,000,000
Term life insurance with no policy fees and the freedom to cancel anytime. Simple application process that can get you approved for coverage instantly.
20 - 80 years old
$25,000 to $10,000,000
Quickly get a quote for coverage with this marketplace, which compares term life insurance policies from 45+ carriers.
21 - 54 years old
$50,000 to $1,000,000
Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.
18 - 85 years old
$10,000 to $10,000,000+
Depends on provider and policy
Compare quotes from 16 life insurance companies side by side.
20 - 85 years old
$100,000 to $1,000,000
Get a term life insurance quote from Fidelity Life - starting as low as $15/day.
18 - 75 years old
$100,000 to $5,000,000
Depends on provider and policy
Apply for a simple instant-decision policy free of charge. Compare quotes from multiple A-rated carriers.
18 - 80 years old
$50,000 to $25,000,000
Depends on provider and policy
Get a quote within minutes from more than a dozen insurers.
18 - 75 years old
$25,000 to $10,000,000
Yes, for policies over $1 million
Term life insurance with no medical exams for $1 million of coverage or less. Online application gets you a decision in 10 minutes.
18 - 80 years old
$25,000 to $10,000,000
Depends on provider and policy
Compare quotes from over 40 highly rated carriers and get coverage shortly after approval.
18 - 64 years old
$100,000 to $3,000,000
Customized term life insurance policies up to $3 million, no medical exam required.
18 to 85 years old
$10,000 to $1,000,000
Affordable life insurance for active duty, reserve, and retired United States military service members. Get a free quote online.

Compare up to 4 providers

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 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 (LGA)$19.69$16.68$65.70$54.39
William Penn (LGA in New York)$19.69$16.68$65.70$54.39
Protective Life$19.78$17.20N/AN/A
AIG Life Ins (American General)$19.81$16.78$66.09$54.84
US Life (AIG in New York)$19.81$16.78$66.09$54.84
Pacific Life$20.31$17.00$65.87$54.40
John Hancock USA$23.47$20.02$74.22$55.42
Principal Life Insurance$21.00$17.68$86.63$68.25
Minnesota Life$22.40$18.70$70.84$55.88
Lincoln Financial Group$25.81$21.88$78.31$59.06
AXA Equitable$24.82$20.12$71.85$57.74
United of Omaha$21.22$17.28$92.09$75.47

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%.

To give you an idea of the average life expectancy in the US, a man who reaches age 65 today can expect to live until age 84.3. A woman turning 65 can expect to live until 86.6. Keep in mind that these are just averages — about a quarter of all 65-year-olds will live past age 90.

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.

Odds of passing away for a 25-year-old

Within the next…MaleFemale
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.

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.

What is expected value and how is it determined?

The expected value (EV) of a life insurance policy is the anticipated value based on the odds that you’ll die and your death benefit will be paid out. You can find the expected value by multiplying the probability of you dying by the payout of the policy. If the expected value is higher than the total cost of the policy over the term length, then it may be considered a good investment. However, if the expected value is less than the total amount you’ll pay into the policy throughout the term, then you may want to look at other providers or alternatives to life insurance.

Let’s look at an example. Say you’re a 50-year-old nonsmoker who’s thinking about taking out a 20-year term life policy for $500,000 at $79.88 a month. As a man, you have a 20.97% chance of dying within the next 20 years, so you multiply that by $500,000 to get an expected value of $104,859.38. Since the total cost of your policy over 20 years adds up to $19,171.89 — less than the expected value — then your life insurance policy may be considered a good investment for the future.

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

Term life insurance is the cheapest type of life insurance overall, and life insurance providers should offer particularly low premiums to a 25-year-old. As such, it’s a popular choice for those in their mid-20s.

This type of life insurance policy provides coverage for a fixed period, usually 10, 20 or 30 years. If you die during that time, your life insurance provider pays out your policy’s death benefit to your beneficiary. However, the odds of you surviving your policy are high, which means the chance of your life insurance provider actually paying out your policy is low. In simple terms, it’s easy money for them — but a term life policy will protect your loved ones in case of a tragedy.

Most 25-year-olds can access a solid term policy for a low cost — for example, $500,000 in coverage for $22.09 a month. With term life policies, your premium doesn’t change, meaning you could be covered for a low cost throughout your working life.

If you prefer a policy that builds cash value, consider permanent life insurance, such as whole life. It typically costs two to four times more than term life insurance, but is still relatively affordable for a 25-year-old. A whole life policy is the most basic form of lifelong protection, and it never expires, as long as you make your payments.

Like term life, your whole life premium stays the same, but a portion of that premium is invested to give your policy a cash value. Once you build up enough value, you can take out loans against your policy to pay for things like a down payment on a house or a wedding. When you die, your beneficiaries receive a death benefit and an added cash value benefit.

As a 25-year-old, the difference between term and whole life insurance boils down to cost and whether you’d like access to benefits while you’re still alive.

Why we like:

Get a quote within minutes from more than a dozen insurers.

  • Get a quote in 30 seconds
  • Compare prices from 14+ providers
  • Matched with the provider that's best for you

Why we like: Quotacy

Get a quote within minutes from more than a dozen insurers.

  • Find the right amount of coverage that you need.
  • Compare prices from over a dozen companies.
  • Free online access to advisors.

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.

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.

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.

Proactivity pays off in other ways: It not only offers you a financial building block for the future, but can also provide peace of mind for your family, if and when you have one.

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.

Find a life insurance policy today

Use our magical comparison tool to find the best rates in your area.

Your information is secure.

Frequently asked questions

Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site