Average Life Insurance Costs for 20-Year-Olds

Average Life Insurance Costs for 20-Year-Olds

Being 20 and Having Life Insurance

There’s a lot to be excited about in your twenties. Options and opportunities start opening up, and you may even be looking forward to or just past graduation. With such brightness before you, it may not immediately occur to you that life insurance in your twenties is a real need. It may not be, but it depends on your situation. 

There’s a lot of variation in life insurance coverage, and it’s designed to fit as many ways of life as it can. And while many 20-year-olds go uninsured, others realize that it’s a smart move to capitalize on life insurance now than in the future when premiums rise. Those looking to save considerable amounts of money ought to consider getting a policy for strategic and financial reasons. 

The question is how much money you can save and how much life insurance is for a 20-year-old on average. You’ll see that life insurance is much different than other forms that slant against you for being relatively younger than other consumers. Let’s discover what the best options are and what you might pay.

Calculating Insurance Costs in Your Twenties

Insurance may seem like a headache you’d rather not face, but because life insurance differs from others, you should strike the lowest premiums while you can. Unlike other forms of insurance that require huge investments, the actual cost of life insurance is seemingly low. 

For example, a male 20-year-old can get car insurance for over $300 per month or a female 20-year-old can pay slightly less. Each will pay around $4,000 each year simply to keep their car covered. Varying from life insurance policies, age is viewed as high risk and a red flag for insurers. It signals recklessness and inexperience.

Such is not true of life insurance. Age is an asset when you’re young because life insurance is significantly cheaper in your twenties—even compared to people who just turned 30. Being young and in the prime of life usually means good health and a long, satisfying life ahead. 

The insurance company is interested in making money throughout the policy. If they think you’re fit, youthful, and have a low rate of mortality, you can be insured pretty cheaper, especially with a term-based policy.

Average Insurance Premiums for 20-Year-Olds

It may surprise you to learn that though some are slightly older, life insurance costs pretty much the same amount through your twenties. Because this is truly the prime of life, it makes sense that the rate of mortality doesn’t change enough for there to be too much difference between similar ages. But, they do contrast sharply with older applicants and policyholders.

For instance, if you buy a 20-year term life insurance policy at the age of 20, you’d pay about $16 per month as a male ($13 as a female) for $250,000 in coverage. If you wanted a slightly larger insurance policy, like $500,000 in coverage, you’d pay just $26 per month as a male and, as a female, $20 per month. Then, there’s $1 million in coverage. For that, males usually pay around $40 with females less at around $30.

These numbers show the difference between insurance and the advantage of choosing life insurance at a younger age. Compared to car insurance that views age as a negative (and costs many thousands of dollars each year), you can get life insurance for under $300 per year. That’s the same as one month of car insurance in your twenties!

Should You Get Life Insurance at 20?

We’ve shared the rates for term policies only because they are the greatest value for those just starting their career and life without seeking a hefty, additional bill. The insurance can be set to cover any number of years up to 40 in increments of five. For a 30-year term life insurance policy, it would cover you until your fifties (unless you chose to convert it to permanent insurance).

While it’s easy to see how high death benefits and low premiums are a perk, you may wonder if it’s all really necessary. That depends on the life you want and the situation you find yourself in. If you want to start a family, buy a home, or take out a large loan, you’ll want life insurance to protect your family in the event they lose you and your income.

Think about what might happen to those you love if you skip life insurance as a financial security measure, and answer for yourself whether you want to save them possible heartbreak and struggle. 

Explore Term Life Insurance with Sproutt

For 20-year-olds, Sproutt sources some of the best quotes in the life insurance industry. With insight and advanced technology, they generate estimates and plans as a broker. Learn more about life insurance and start shopping for quotes with Sproutt.