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Life insurance for 25-year-olds
Premiums will be at their most affordable when you're young and healthy.
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
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
|Provider||Male nonsmoker||Female nonsmoker||Male smoker||Female smoker||Apply now|
|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.
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…||Male||Female|
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.
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.
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