Best Life Insurance Companies for Young Adults in 2024

Life insurance is often thought of as something you need as you get older. But it can be extremely valuable for young adults who are planning to start a family in the future or are growing their families. And because life insurance premiums increase with age, buying a policy while you are young and healthy can help you lock in an affordable rate. To select the best insurance companies you'll find in our list, we analyzed 91 insurance companies across more than 50 data points. We also reviewed information from J.D. Power and A.M. Best to get a better picture of how good a company's customer service is and what its financial strength is like.

Best Life Insurance Companies for Young Adults in 2024

Best Overall: Protective
Runner Up, Best Overall: Banner by Legal & General
Best for Customization: Mutual of Omaha
Best for Living Benefits: Nationwide

Companies reviewed

Features considered

5,005

Data points analyzed

We collected over 5,000 data points from 91 life insurance companies to measure financial stability, customer satisfaction, product and feature variety, and the overall buying experience. We then evaluated each company based on 55 metrics to develop unbiased, comprehensive reviews.

Read our Full Methodology

with our partner Covr Financial from multiple providers before buying.

Best Overall : Protective

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A
Accepts Credit Cards: Yes

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Pros and Cons

Pros

Tied for cheapest term life insurance
Superior financial strength
Term lengths up to 40 years
Same-day coverage for eligible applicants

Cons

Below average J.D. Power customer satisfaction ranking

Why We Chose It

Based on our review of 90 life insurance companies, we determined that Protective is the best life insurance company for young adults overall. It’s also our top pick for best term life insurance companies.

Protective has excellent pricing for term life insurance policies, which makes it a great option for young adults who need cheap term life insurance. Out of the “best” companies on our list, Protective tied with Banner for having the cheapest term life insurance premiums. In terms of coverage, Protective offers term, whole, universal life (UL), indexed universal life (IUL), and variable universal life (VUL) insurance, as well as no-medical-exam policies. You can get a quote and apply online for term life insurance, and get same-day coverage if you meet the underwriting requirements. Protective’s term life policies can be converted to permanent coverage and are renewable once the term ends. Plus, you can choose term lengths of up to 40 years, which is the longest we’ve seen among the providers we reviewed.

While Protective has superior financial strength, with an A+ (Superior) rating from AM Best, the company falls short when it comes to overall customer satisfaction. In J.D. Power’s Individual Life Insurance Study, Protective scored 752 out of 1,000, which is below the industry average of 776 out of 1,000; it placed 16th out of 21 major life insurance companies.

Read the Full Protective Life Insurance Review

Runner Up, Best Overall : Banner by Legal & General

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A+
Accepts Credit Cards: No

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Pros and Cons

Pros

Tied for cheapest term life insurance
Option to stack coverage with term riders
Term lengths up to 40 years
Generous term conversion period

Cons

Limited policy types available
Fewer riders than some competitors

Why We Chose It

Banner tied with Protective for the cheapest term life insurance and also has term lengths up to 40 years. But it offers fewer coverage options and riders than Protective, which is why it took the runner-up spot for best life insurance company for young adults.

But if you’re interested in a term life insurance policy, Banner is a great provider to consider. You can get more than $10 million in coverage, and term policies are convertible until the end of the term (or until age 70). They are also renewable if you prefer to extend term coverage beyond the original term. We like that you can stack your coverage by adding term riders to your base policy for 10, 15, or 20 years; stacking allows you to increase your coverage for specific periods in life, like when you’re paying off a mortgage, while maintaining an affordable base policy. In addition, Banner offers no-medical-exam policies to eligible applicants, as well as online quotes, online applications, and same-day coverage for some individuals. However, you can only buy term life insurance and universal life insurance from Banner, and the company offers fewer riders for customization compared to many other providers we reviewed.

Read the Full Banner Life Insurance Company Life Insurance Review

Best for Customization : Mutual of Omaha

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A+
Accepts Credit Cards: Yes

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Pros and Cons

Pros

Living benefits riders included with many policies
Uncommon riders available
No-medical-exam policies for eligible applicants
Return-of-premium term life insurance
Live chat

Cons

Can’t apply online for term life insurance without an agent
No traditional whole life or variable universal life policies

Why We Chose It

While many companies let you customize your policy, we chose Mutual of Omaha as the best life insurance company for young adults who want to customize their coverage. This is because the company offers a wide selection of riders and policy features, including less common ones, such as a disability income rider and a return-of-premium feature on some of its term policies.

If you add a return-of-premium rider to your term life policy, you can recoup up to 100% of your premiums paid if you outlive the term. Plus, most policies include living benefits riders for terminal and chronic illnesses at no upfront cost; some policies include living benefit riders for terminal, chronic, and critical illnesses at no upfront cost. For these reasons, it’s also our top pick for best life insurance companies for living benefits.

Through Mutual of Omaha, young adults can purchase term life, universal life, indexed universal life, or final expense whole life insurance. The company doesn’t sell traditional whole life insurance or variable universal life insurance. In addition, some policies are available without a medical exam to eligible applicants. You can get a quote for term life insurance on Mutual of Omaha’s website, but you must apply through an agent. If you need help, you can reach an agent during business hours via phone call or live chat.

Read the Full Mutual of Omaha Life Insurance Review

Best for Living Benefits : Nationwide

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A+
Accepts Credit Cards: Yes

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Pros and Cons

Pros

Excellent customer satisfaction ratings
Wide selection of policy types
Most policies include three living benefits riders
No-medical-exam policies available to eligible applicants

Cons

Does not offer live chat
Not the lowest pricing for term policies

Why We Chose It

Nationwide is our choice for best life insurance company for young adults for living benefits, and it’s our top pick for best life insurance companies overall. Most of Nationwide's life insurance policies include three living benefits riders—for terminal illness, chronic illness, and critical illness—at no upfront cost.

For young adults who want the most policies to choose from, Nationwide is also a great pick. The company offers a wide selection of policy types, including term life, whole life, universal life, indexed universal life, and variable universal life. Plus, some applicants in good physical health may be eligible for life insurance without a medical exam for up to $5 million in coverage.

In terms of third-party ratings, Nationwide has excellent marks. In J.D. Power’s 2021 U.S. Individual Life Insurance Study, Nationwide was ranked second out of 21 companies. It received a score of 813 out of 1,000, which is well above the industry average of 776 out of 1,000.

It’s worth noting that Nationwide’s pricing for term life insurance policies were about average based on our research. We collected quotes for 30-year $250,000 term policies from 32 life insurance companies for males and females in excellent health aged 25, 40, and 55 years old. But while price is important, it’s equally important to consider included benefits. Nationwide’s term policies automatically include chronic, critical, and terminal illness riders free of charge—you can get a quote online to see how much you will pay.

Read the Full Nationwide Life Insurance Review

	Best For	AM Best Rating AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations.	Term Life Sample Cost	Policy Types	Accepts Credit Cards		Reset All
Protective	Best Overall	A	$22.92/month	Indexed Universal (IUL), Term, Universal (UL), Variable Universal (VUL), Whole	Yes	Get A Quote	Hide, not for me
Banner by Legal & General	Runner Up, Best Overall	A+	$22.92/month	Term, Universal (UL)	No	Get A Quote	Hide, not for me
Mutual of Omaha	Best for Customization	A+	$28.38/month	Final Expense, Indexed Universal (IUL), Term, Universal (UL)	Yes	Get A Quote	Hide, not for me
Nationwide	Best for Living Benefits	A+	$26.25/month	Final Expense, Indexed Universal (IUL), Term, Universal (UL), Variable Universal (VUL), Whole	Yes	Get A Quote	Hide, not for me

Final Verdict

Based on our comprehensive review of the 90 life insurance providers in our database, Protective stands out as the best life insurance company for young adults overall. Protective and Banner tie for the cheapest term life insurance of the providers we reviewed, and both companies offer term lengths of up to 40 years. This feature may be particularly valuable for young adults with decades of income-earning potential ahead of them. For policy customization and living benefits, Mutual of Omaha and Nationwide are each excellent picks. But before you choose a company to go with, collect multiple quotes and compare the coverage and benefits each company offers.

More Ratings of Top Life Insurance Companies

Frequently Asked Questions

What is the Difference Between Term and Whole Life Insurance?

There are two main categories of life insurance—term life insurance and permanent life insurance. Whole life insurance is one kind of permanent life insurance, but it’s not the only one. Universal life insurance, which is another common form of permanent coverage, is a more flexible type of whole life insurance.

One of the major differences between term and permanent life insurance is the length of coverage. Term life insurance provides coverage for a fixed number of years, whereas permanent life insurance provides coverage for your lifetime, as long as the premiums are paid. In terms of cost, permanent policies are usually more expensive than term life policies while you’re young, but term life rates increase with age and don’t build a cash value like permanent policies do.

How Much Does Life Insurance Cost?

The cost of life insurance depends on a variety of factors, like your age, overall health, insurance company, and the type of policy. In general, permanent life insurance is more expensive than term life insurance, and term life insurance premiums are cheapest while you’re young and in good physical health.

To better understand price, we can look at sample rates for term life insurance from some of the best life insurance companies for young adults. For a $250,000 30-year term policy from Protective, for example, a healthy 25-year-old might pay about $16 per month.

When choosing a life insurance company as a young adult, cost isn’t the only factor you should consider. It’s important to look into other features, like what accelerated death benefit riders are available and whether term policies are convertible, as you compare companies and get quotes.

How Much Life Insurance Do I Need?

There are a few ways to figure out how much life insurance to get. For instance, you could purchase an amount of coverage equal to your salary multiplied by a certain number of years. For example, if you make $100,000 per year and want to ensure your family has financial protection for 10 years, you might choose a policy with a $1 million death benefit. Another option is to choose a coverage amount based on how much money your family would realistically need to continue the same standard of living without your income. Add up costs like your mortgage payment, health insurance premium, childcare costs, and food expenses. You should also factor in the cost of a funeral or final medical bills if you were to pass away.

If you still need guidance choosing a life insurance death benefit, an insurance agent can help you analyze your income replacement needs. Many life insurance companies provide an online coverage calculator for this purpose.

How We Chose the Best Life Insurance Companies for Young Adults

To find the best life insurance companies for young adults, we used a comprehensive methodology to review and compare providers. Before we started evaluating individual companies, we consulted third-party studies to learn what young adults want from a life insurance provider. Studies include J.D. Power’s 2021 U.S. Individual Life Insurance Study and the 2021 Insurance Barometer Study by Life Happens and LIMRA. Next, we collected data on 91 life insurance companies. We evaluated these companies based on over 50 data points within the following categories:

Financial strength
Cost
Policy types and features
Policy riders
Customer satisfaction
Customer complaints
Online tools
No-exam options

Companies with reasonably-priced term policies and digital features like online quotes, online applications, same-day issue, and no-medical-exam options generally ranked highest. Companies with educational resources and live chat also did well.

Once we established which companies scored the best based on these and similar criteria, we favored companies with an AM Best Financial Strength Rating of A+ (Superior) or A++ (Superior). We omitted companies that received more than 1.25 times the expected number of consumer complaints averaged over three years, according to National Association of Insurance Commissioners (NAIC) complaint data.