Best Life Insurance Companies for Young Adults (2025)

• Buying life insurance when you’re young can help you lock in lower premiums for decades.
• The best life insurance companies for young adults in 2025 balance price, policy options, and an easy digital application process.
• Term life insurance for young adults is often the most affordable starting point, though permanent options can grow with your needs.
• Ethos is among the top-rated choices for young adults seeking fast, reliable coverage online.
• Comparing quotes now can help you find affordable life insurance that fits your lifestyle and long-term goals.

The best life insurance companies for young adults in 2025 combine affordable pricing, flexible options, and easy digital access. The providers below are recognized by neutral financial media outlets for their strong financial ratings, customer experience, and long-term reliability. All companies hold an A.M. Best rating of A- or higher for financial strength.

As you begin to shop for life insurance, you’ll find two main approaches: 

1. Digital Platforms

   Digital-first platforms like Ethos allow applicants to apply for coverage online, often without a medical exam. As part of the Ethos process, applicants complete one short application, and the platform recommends a product fit and matches them with a top-rated partner carrier. This approach emphasizes speed and convenience while keeping underwriting transparent.

   Other digital platforms partner with a single insurer and/or only issue one kind of product. The process is still quick and mobile-friendly, but because coverage comes from just one provider, options may be limited.

2. Direct Carriers

   These are traditional insurance companies such as Protective, Nationwide, or John Hancock. When you buy a policy, you know the insurer’s name up front, and your policy is directly underwritten by that company.

1. Ethos

   Ethos offers one of the fastest and most accessible ways for young adults to apply for life insurance online. Applicants can get a quote and complete the process in minutes, with no medical exam required. You’ll just answer a few health questions during the application.

   One of Ethos’s standout advantages is product range. Ethos offers term life, whole life, and indexed universal life (IUL) options, featuring coverage types many other digital-first platforms don’t provide. That flexibility makes it easier to adapt your protection as your needs evolve over time. Policies are backed by top-rated insurers, combining modern convenience with traditional stability, so you’re matched with the best fit for your needs.

   Ethos takes the guesswork out of the shopping process because you can compare coverage, apply online, and get insured without medical exams or having to meet with an agent. For young adults who prefer convenience and transparency, Ethos simplifies every step.

2. Banner Life (Legal & General America)

   Banner Life remains one of the most affordable term life options for young adults in 2025, with consistently strong financial ratings and competitive pricing. The company receives high ratings for simplicity, flexible term lengths, and reliable claims service. Banner Life also stands out for its 35- and 40-year term policies, which not all life insurers offer¹.

3. Protective Life

   Protective offers budget-friendly term policies and long-term flexibility through its conversion options. It’s recognized for low premiums, strong financial strength, and customer satisfaction, all of which can be ideal for first-time policyholders looking for stable, long-term coverage^2.

4. Nationwide

   Nationwide provides a range of term and permanent life insurance options, backed by A+ financial ratings. It’s often highlighted for digital tools and strong policy management support, making it a good fit for younger adults who prefer a mix of online access and established customer service³.

5. John Hancock

   John Hancock combines the financial strength of a long-established insurer with innovative products like return-of-premium term life insurance, which refunds premiums if the policy term ends without a claim. For young adults who want trusted coverage with flexible perks, John Hancock ranks among the best life insurance companies in 2025⁴.

6. Penn Mutual

   Penn Mutual has maintained an A+ (Superior) rating from A.M. Best and is recognized for its dividend performance and low complaint volume. Its mutual company structure may appeal to young adults who want to work with an insurer that prioritizes policyholders over shareholders⁵.

Why the Best Life Insurance Companies Matter for Young Adults

Buying life insurance while you’re young can provide decades of peace of mind. Premiums are generally lower for applicants in their 20s and 30s, and qualifying is easier when you’re in good health. Working with one of the best life insurance providers ensures stability, clear communication, and long-term financial strength if you ever need to make a claim.

Read: Best No Exam Life Insurance Companies (2025)

Life insurance isn’t only for parents or homeowners. It’s one of the smartest ways to plan ahead while your rates are still relatively low. Buying coverage early can lock in long-term affordability and guarantee your future insurability, even if your health changes later.

Here are a few reasons young adults often choose to get covered now:

• Lower premiums: Rates are based on age and health, so you’ll never find coverage cheaper than it is today.
• Protecting family or co-signers: Even if you don’t have dependents yet, life insurance can help pay off shared debts or student loans.
• Planning for future responsibilities: Marriage, children, or buying a home can all increase your financial obligations. Getting coverage now ensures protection before those milestones happen later in life.
• Peace of mind: Knowing you’ve secured a financial safety net early helps you focus on other goals, like saving and investing.

Life insurance for young adults is often more flexible than people realize, with modern policies designed to adapt as your life and financial needs evolve.

Read: Best Term Life Insurance Companies

Choosing the right life insurance policy depends on your financial goals, budget, and how long you want coverage to last. Once you’ve narrowed down the best companies, the next step is choosing the policy type that fits your goals.

For young adults, term life insurance is usually the most affordable and straightforward option, but other policy types may offer more flexibility over time. Here’s an overview of the most common policy types young professionals might choose:

Term Life Insurance

Term life insurance offers simple, low-cost coverage for a set number of years, typically between 10 and 30 years. If you pass away during the term, your beneficiaries receive the full death benefit. Once the term ends, coverage expires unless you renew or convert to a permanent policy.

Term insurance can be a great choice for young adults who want to protect income, pay off shared debts, or cover future family needs at the lowest possible cost.

Whole Life Insurance

Whole life insurance provides lifelong coverage with guaranteed premiums and a fixed death benefit. It also builds cash value over time, which can be borrowed against or used later for financial planning.

Whole life is usually the most expensive kind of life insurance, so it might not be a good fit for the budgets of those in their 20s or 30s.

Universal Life Insurance

Universal life insurance combines lifelong coverage with flexibility in how you pay and grow your policy. Unlike whole life, which has fixed premiums and benefits, universal life allows you to adjust your payments or coverage amount as your financial situation changes.

While universal life policies can offer more flexibility and growth potential, they’re typically better suited for people with long-term financial plans and a higher comfort level with complexity and risk.

Read: How Much Term Life Insurance Do I Need

Finding the best life insurance company for your needs goes beyond price. The right provider should offer strong financial stability, an easy application process, and coverage options that can grow with you over time. Here’s what to look for when comparing life insurance companies for young adults:

• Financial strength and reputation: Choose companies with solid A.M. Best or Standard & Poor’s ratings, which reflect their ability to pay future claims.
• Ease of application: Many young adults prefer insurers or platforms that offer quick, digital applications with minimal paperwork or medical exams.
• Policy flexibility: Look for options that allow you to renew, convert, or customize your coverage as life changes.
• Customer experience: Check independent reviews and consumer ratings for responsiveness, claim support, and transparency.
• Available riders: Some policies include optional riders (like an accelerated death benefit or guaranteed insurability rider) that provide added financial protection as your needs evolve.

Taking a few minutes to compare these factors can help you find affordable life insurance for young adults that fits both your lifestyle and your long-term goals.

Read: What Disqualifies Life Insurance Payout

Life insurance is most affordable when you’re young and healthy, which makes your 20s and 30s the best time to apply.

Rates can vary based on several factors:

• Age and health: Premiums increase as you get older.
• Coverage amount: Higher coverage means higher monthly costs, but greater financial protection.
• Policy type: Term life is the most affordable; whole and universal policies are higher because they last for life.
• Gender and lifestyle: Nonsmokers and people with healthy habits typically qualify for lower premiums.

For most young adults, term life insurance is the simplest and most cost-effective choice. It provides guaranteed coverage for a set period at a predictable price. Here’s a look at average term life insurance rates for a $500,000 policy for healthy non-smoking applicants at various term lengths:

Even modest coverage can go a long way in protecting loved ones from financial stress. Locking in a term policy now helps you secure lower premiums that stay fixed for the duration of your coverage, often for less than the cost of a few streaming subscriptions per month.

Read: What Does Life Insurance Not Cover

Buying life insurance early is one of the smartest financial moves you can make but even young, healthy applicants can overlook key details. Here are a few common mistakes to avoid when choosing your first policy:

• Waiting too long to apply: Life insurance rates increase every year you age. Buying early helps you lock in lower premiums while you’re at your healthiest.
• Choosing too little coverage: It’s easy to underestimate how much protection your loved ones might need. Consider future expenses like student loans, rent or mortgage payments, and income replacement, not just short-term bills.
• Focusing only on price: While affordability matters, the cheapest policy isn’t always the best fit. Look for a balance between cost, financial strength, and flexibility.
• Skipping term conversion options: Some term policies allow you to convert to permanent coverage later without new medical underwriting. That flexibility can be valuable as your life and finances evolve.
• Not reviewing coverage over time: Major milestones like marriage, a new job, or buying a home often mean your life insurance needs change. Do an annual review to make sure your coverage still fits.

Avoiding these common missteps helps ensure your policy truly protects your goals, not just your current situation.

Read: Best Life Insurance with Pre-Existing Conditions

Life insurance isn’t just something to think about later in life; it’s one of the easiest ways to build financial security early. The best life insurance companies for young adults in 2025 make it simple to get covered, compare policies online, and lock in affordable rates that last for decades.

Platforms like Ethos take the hassle out of applying, offering fast, no-exam coverage backed by top-rated insurers. You can check your options online in minutes and secure protection that fits both your budget and your goals.

Getting started now means peace of mind for the people you care about most and it’s a smart move that only gets harder (and more expensive) to put off.