{"id":511261,"date":"2023-06-27T21:13:47","date_gmt":"2023-06-27T21:13:47","guid":{"rendered":"https:\/\/fidelitylife.com\/?p=511261"},"modified":"2023-06-27T21:13:47","modified_gmt":"2023-06-27T21:13:47","slug":"life-insurance-for-young-adults","status":"publish","type":"post","link":"https:\/\/staging03.wordpress.fidelitylife.com\/?p=511261","title":{"rendered":"Life insurance for young adults"},"content":{"rendered":"

Life insurance can be easy to overlook for current college students or young adults just entering the workforce. Young adults may think that life insurance is just for older people or that paying for life insurance is a waste of money. However, Gen Z is primed to lock in some of the best life insurance rates.<\/p>\n

Gen Z\u2019s perception of life insurance is changing, too, as 55% of young adults ages 18-25<\/a> said that COVID-19 influenced them to buy life insurance or get additional coverage.<\/p>\n

In this article, we\u2019ll explore the best life insurance policies for young adults and the benefit of getting life insurance at a young age.<\/p>\n

Who qualifies for young adult life insurance? \u00a0<\/b><\/h2>\n

Young adult life insurance is available to anyone who qualifies, though most policies require applicants to be at least 18 years old. Parents or older adults can get a life insurance policy for children<\/a> under 18.<\/p>\n

Opening a life insurance policy for someone under 18 can be a good choice in certain situations. Securing coverage while children are young can help protect the finances of their loved ones for years to come.<\/p>\n

Which type of life insurance is best for young adults?\u00a0<\/b><\/h2>\n

Everyone has a unique situation, and each type of life insurance best fits specific individuals. Depending on various factors, young adults will want to choose between term or permanent life insurance.<\/p>\n

Term life insurance\u00a0<\/b><\/h3>\n

A term life insurance policy lasts a specific period, usually 10, 15, 20, or 30 years. While a term life insurance policy doesn\u2019t hold cash value<\/a>, it does ensure that beneficiaries will receive a payout, known as the death benefit, if the insured passes away during the policy term.<\/p>\n

Each term life insurance policy expires at the end of the term, so many young adults would benefit from a longer term, like 30-year term life insurance<\/a>. With a 30-year policy, young adults can enjoy an extended coverage period without paying large monthly premiums. By the time the term expires, today\u2019s young adults will potentially have the financial security to go without life insurance or purchase a more robust permanent policy.<\/p>\n

Permanent life insurance\u00a0<\/b><\/h3>\n

Unlike term life insurance, permanent life insurance lasts the policyholder\u2019s entire life. A permanent policy also builds cash value<\/a> over time, with a portion of each premium payment going toward building cash value that grows tax-deferred.<\/p>\n

Because of the plan\u2019s cash value, permanent life insurance policies are sometimes used for retirement savings. However, permanent life insurance policies come with higher premiums than term life, so it\u2019s wise to explore options to choose the one that best fits both needs and budget. Visit our sister company, eFinancial to explore permanent life insurance<\/a> options for young adults.<\/p>\n

What does young adult life insurance cover?\u00a0<\/b><\/h2>\n

When someone passes away, there can be various costs to cover \u2013 including some that might not seem obvious to someone who is young. A life insurance policy can help cover outstanding debt or sudden expenses, including:<\/p>\n