Whole Life Insurance for Young Adults

Key Takeaway

When a healthy, young adult purchases whole life insurance, they are usually able to get a policy with lower premiums as compared to those who are older, or not healthy, which may allow them to build more cash value over time.


Life insurance may not typically be something a young adult thinks about. It might be a benefit that’s offered through work or something they learned about during a life insurance solutions education presentation at work or school, but may not be of concern until they go through a major life event like getting married, having a baby, or starting a business.

Why Whole Life Makes Sense

Whole life can be a good insurance option because it typically stays in effect for an entire lifetime (as long as the premiums are paid). It can be a particularly good choice for a young adult who plans on getting married and having a family, or already has dependents who rely on their income.

More Affordable at a Younger Age

While the issue ages for whole life insurance can cover a wide range, a healthy young adult should typically be able to get a policy at a much lower premium than an older applicant applying for the same coverage. Life insurance coverage rates are based in part on age, because a younger adult has a longer life expectancy than an older adult, so their premium would be less expensive in most cases. 

Whole life premiums also usually stay the same for the duration of the policy, offering an economical way to help provide a financial safety net for the loved ones left behind in the event of an untimely death.

A Built-in Savings Vehicle

Whole life insurance can also help with saving money, since a small portion of each whole life premium is added to the cash value of the policy. The amount may seem insignificant at first, but if you obtain a policy at a young age, the balance will likely grow over time. Saving money within a whole life policy can be an efficient way for a young adult to build wealth and have some money set aside for when life throws them a curveball and they need help to pay some unexpected bills.

Don’t Get Stuck 

Unfortunately, people sometimes pass away sooner than expected. If the deceased has a whole life insurance policy, those who depended on them financially may be in a better financial position to weather the uncertainties that come after the death of a family provider. Some policies also pay out a portion of the death benefit when you’re still alive if you develop a serious covered illness.

How Much Life Insurance Should You Get?

Each person’s situation is different. When you are trying to determine how much whole life insurance makes sense for you, take a look at your income, debts, and what your dependents may need in the future. Also, be mindful that your financial situation could change over time because the premiums on whole life policies need to be paid for the entire lifetime as well.

Wrapping Up

A whole life insurance policy can offer young adults greater confidence by helping protect their loved ones (children, siblings, spouse, parents, etc.) if the unexpected happens. The beneficiaries of the life insurance policy can use the money to pay off loans and debts or as a financial cushion for later in life.

If you have any doubts about the advantages of purchasing a policy, take the time to research whole life insurance examples that highlight what these policies can do.

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The information above is for educational use only and does not represent insurance, tax or legal advice. It is not a recommendation or solicitation to buy insurance. Please talk to your licensed insurance agent for more information about life insurance and your needs. Please consult with the appropriate professional for tax or legal advice. Guarantees are backed by the claims-paying ability of the issuing insurance company.

Article Author: Meredith Bell
Author Bio: Meredith joined Everly in 2022 and has 20+ years of experience in the life insurance industry. She has held various roles in advertising, marketing, communications, sales and distribution support, and product development. Outside of the office, Meredith lives with her daughter Kennedy and their dog Mavis. Meredith enjoys cooking, camping, gardening, hiking, and bourbon (though not always at the same time). She is a live music enthusiast and an avid reader. Her favorite quote is by Thomas Jefferson: "I cannot live without books." Meredith agrees, but would add cheese, movies, and dogs to that list.

Policies are issued by Everly Life Insurance Company (“Everly Life”), Topeka, KS. Everly Life is not licensed in the state of New York and does not solicit or transact business in New York.

A.M. Best's 15 ratings are a measure of claims-paying ability and range from A++ (Superior) to F (in Liquidation). Ratings are current as of January 25, 2024 and subject to change at any time. While ratings can be objective indicators of an insurance company's financial strength and can provide a relative measure to help select among insurance companies, they are not guarantees of the future financial strength and/or claims-paying ability of a company and do not apply to any underlying variable portfolios. The insurance agency from which a policy is purchased, and any affiliates of those entities, make no representations regarding the quality of the analysis conducted by the rating agencies. The rating agencies are not affiliated with the above-mentioned entities, nor are these entities involved in any rating agency's analysis of the insurance companies.

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