At 21, it's easy to assume you don't need life insurance because you're still in those blissful years of young adulthood — going to college, traveling the world, meeting new friends, finding love, etc. The truth is, however, that buying life insurance now will save you a substantial amount of money in the long run. This is because you're young and at your healthiest, so premiums will be unbelievably low. 

According to recent research, you can expect premium amounts to increase by about 8-10% with every year of age you wait to get life insurance. This is because you are more prone to health conditions and complications the older you get. So, when you’re 21 years old, it’s a great time to start looking into cheap life insurance providers.

Life Insurance Tips For 21-Year-Olds

It's easy to get caught up in the notion that at 21, you don't have to think about your future, but the truth is, there is no better time. You're no longer a teenager, and you're on the brink of significant life milestones that are worth preparing for now. Money is a common setback at this age. Most 21 years olds put off getting life insurance because they have this preconceived assumption that it's super expensive. 

According some researches, almost half (44%) of Millennials say they didn't get life insurance sooner because a 20-year term policy would cost $1,000 or more per year. This isn't true. A 20-year term policy would only actually cost, on average, about $165 a year — and you may see much lower at such a young age. 

With that being said, here are some helpful tips for getting life insurance at 21.

Think ahead: lock in a low rate now for your future

When you get a term life insurance plan, you can lock in the unbelievably low premium rate you get at 21 and keep it for the many years of your life that are still to come. You won't have to worry — your policy stays the same every year! In fact, at least 4 in 10 life insurance policyholders say that they regret not purchasing their policy at a younger age and locking in lower rates. 

Make sure you have enough coverage

Believe it or not, at least half of Americans who have life insurance are underinsured. This means your family may not get the payout you think they will if something happens because you aren't putting enough in. Maria Roloff, a wealth advisor at Northwestern Mutual Insurance, said that you should be getting at least 6-10 times your annual income, increasing that amount about a decade down the road since your career won't typically take off until you're later in your 20's or older. 

Compare your options

It can be intimidating to find the right life insurance company and policy for you since you're only 21 and do not expect to face any health problems or serious conditions anytime soon. However, now is the best time to shop around and find the very best deal for your specific needs. Premium rates can vary from company to company depending on whom you work with, so despite earning your lowest rates at 21 years old compared to later, there will still be some research into cheap life insurance providers required for the absolute best deal. 

Consider who your beneficiary will be ahead of time

At 21, there is less chance that you're married and settled down with your own little family — although it is completely possible. If you have started your family young, the answer to who your beneficiary is will be quite simple: your spouse and kids. However, many 21-year-olds today have decided to put off marriage and kids until their late twenties and some even until their thirties. If this is the case for you, you will need to take some serious time to consider who will receive the payout if something were to happen to you. Of course, you can make changes later if wedding bells are in your future. 

Six Of The Best Cheap Life Insurance Providers for People 21 Years Old

Since shopping around and comparing pricing between providers is the most reliable way for you to get the best rate at 21 years, here are at least six great options for cheap life insurance providers you can choose from. Each option will have information for both Term Life Insurance and Whole Life Insurance since those policies will likely be the most relevant to a 21-year-old looking for life insurance.

Sproutt

Sproutt

When deciding your premium rate for life insurance, Sproutt is beneficial because it will consider your needs, lifestyle, and preferences. You will start by filling out a questionnaire online, giving some information about yourself and the lifestyle you lead. Your application is evaluated and reviewed by different insurance carriers and eventually activated.

Although there are other options, the most relevant for you will be Term Life Insurance. 

For Term Life Insurance (20-year term):

Assuming the individual is healthy, a 21-year-old can expect:

Death Benefit Average Cost
$100K - The cost of a Life Insurance policy for a 21 yr-old Female is $9.05 a month.
- The cost of a Life Insurance policy for a 21 yr-old Male is $9.92 a month.
$250K - The monthly premium of a Life Insurance policy for a Female at the age of 21 is $13.09.
- The monthly premium of a Life Insurance policy for a Male at the age of 21 is $14.57.
$500K - The Life Insurance rate for a 21 yr-old Female is $18.71 per month.
- The Life Insurance rate for a 21 yr-old Male is $20.88 per month.

SelectQuote

SelectQuote

The benefit of working with SelectQuote when getting your life insurance is that you gain access to higher coverage amounts than many other companies, policies are renewable, and it's easy to convert your policy to permanent in the future if you'd like. 

For Term Life Insurance (20-year term):

Assuming the individual is healthy, a 21-year-old can expect:

Death Benefit Average Cost
$250K - The Premium of a Life Insurance policy for a 21 year-old Female is $11.39 per month.
- The Premium of a Life Insurance policy for a 21 year-old Male is $12.83 per month.
$500K - The Life Insurance policy Premium for a 21 year-old Female is $16.40 a month.
- The Life Insurance policy Premium for a 21 year-old Male is $19.29 a month.
$1M - The monthly Premium of a Life Insurance policy for a Female at the age of 21 is $23.97.
- The monthly Premium of a Life Insurance policy for a Male at the age of 21 is $31.44.

Ladder

Ladder

Getting a policy with Ladder can be a great option for policyholders interested in a company that has no fees, offers cancelation anytime, allows you to adjust coverage whenever you need to (HUGE for 21-year-olds since you're likely not in an established career just yet), and coverage is customizable. 

You can receive up to $8 million in term coverage, with most policies ranging between $100,000 and $8 million in coverage. The perk with this company is you can customize your policy price to fit your needs now, which may be low (still consider a life insurance calculator to prevent it from being too low!). As you get older, you may want to consider increasing. 

Ethos

Ethos

The benefit of getting a life insurance policy with Ethos is that you can get same-day coverage, the policies are pretty affordable, and the company is known for giving honest advice without up-selling to get an extra buck from you. This is important since you're only 21 and just learning about your life insurance options.

For Term Life Insurance (20-year term):

Assuming the individual is healthy:

  • 21 yr-old Female is an estimated monthly between $9 and $12 for $100,000 face value.
  • 21 yr-old Male is an estimated monthly between $10 and $14 for $100,00 face value.

Bestow

Bestow

The benefit of working with a company like Bestow for your life insurance is that they cover between $50,000 and $1.5 million. You can also apply in minutes, and the process is considered one of the easiest to complete. 

For Term Life Insurance (20-year term):

Policy Face Value Policy Cost
$200,000 - A Healthy 21 yr-old Female can expect a $12.15 monthly premium.
- A Healthy 21 yr-old Male can expect a $19.17 monthly premium.
$1,500,000 - The estimated monthly premium for a Healthy 21 yr-old Female is $43.50.
- The estimated monthly premium for a Healthy 21 yr-old Male is $78.50.

Haven Life

Haven Life

The benefit of working with Haven Life when searching for cheap life insurance providers is that the application takes only five minutes to complete. You also don't have to worry about including in time to make a doctor visit, fill out additional paperwork or acquire a physical. Even better, you can get up to $3 million in coverage.

For Term Life Insurance (20-year term):

Policy Face Value Monthly Premium
$500,000 - For a Female at the age of 21 is $23.80.
- For a Male at the age of 21 is $33.83.
$3,000,000 - For a Female at the age of 21 is $84.07.
- For a Male at the age of 21 is $113.75.

What's Next?

Now that you're fully covered with life insurance from one of these cheap providers at just 21 years old, you can now get back to living your life to the fullest. There's no better time to take in all the wonderful opportunities and experiences available to you in your early twenties. Even better, you can rest assured that when it does come time to take on more responsibilities and settle down, you have already locked in the very best rate you could get for your future and your family's future. 

Cheap Life Insurance Quotes by Age

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