Best Life Insurance Companies for Young Adults (2024)

Best Life Insurance Companies for Young Adults

Best Life Insurance Companies for Young Adults

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.

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.

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.

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.