Life insurance at 23 years old is so important because you have many big milestones ahead of you to prepare for. You're reaching your mid-twenties soon, and policy rates are sure to spike up by 30 when most people think it's more appropriate to get life insurance.
What We'll Cover
- The Importance of Life Insurance
- Types of Life Insurance You Can Choose From
- Six of the Best Life Insurance Providers for a 23 year-old
- Your Future Is Secured
The truth is, it's much better to get life insurance as soon as possible rather than waiting until you're 30 or older. This is because rates rise by as much as 10% for every year you wait to lock in your low rate. What's more, almost half (40%) of Americans with life insurance regret not getting their policy at a younger age. At the young age of 23, it's not too late for you to avoid the same mistake!
Here's what you need to know about selecting cheap life insurance providers at 23 years old.
The Importance of Life Insurance
The importance of life insurance is that it protects those you love from going into debt if something were to happen to you. Life insurance can be a great way to ensure your beneficiary has the extra income to:
- Cover funeral expenses — the average cost of a single funeral is estimated between $7,000 and $12,000.
- Replace lost income for spouse or dependents — may not be super relevant for some at 23, but it may in the future!
- Pay off your debt — a lot of debt can accrue as a young adult, with research showing nearly $22,000 in debt is acquired between 18 and 24 in just student loan debt. Your debt does not disappear when you die. Someone will have to pay for it. Your life insurance ensures that someone is crippled by your debt from school and other things.
Types of Life Insurance You Can Choose From
When you’re researching cheap life insurance providers for 23 years old, you need to know what you’re looking for. The most relevant types of life insurance for you at 23 are Term Life Insurance and Whole Life Insurance. Term Insurance is typically prioritized at this age because it is the cheapest type of life insurance you can acquire. With that being said, it is always good to be familiar with your options when searching for the perfect life insurance for you and your needs.
Term Life Insurance
Term life insurance refers to policies with a fixed rate of payments on the coverage amount of your choice. It is characterized as temporary, affordable, no catch value, typically renewable, and can often be converted to permanent life insurance. The only cons to getting Term life insurance is that your policy is only for a select amount of years (typically 10, 15, 20, 30), and you must re-qualify at the end of the term. This can make it difficult if you develop a health condition by the end of it.
Whole Life Insurance
Whole life insurance refers to a policy made for the insurance of your entire life as long as you are keeping up with premium payments. The most significant difference with Whole life insurance is that you can tap into your policy's cash value throughout your life when you need it. The biggest benefits of whole life insurance are that the cost and your death benefit are guaranteed to stay the same, and there are tax advantages.
Universal Life Insurance
Universal life insurance is another form of permanent life insurance that covers you throughout the duration of a lifetime. The benefits of Universal are that you can withdraw or borrow money whenever you earn interest on cash value, you can adjust your death benefit, and premiums tend to be pretty flexible.
Variable Universal Life Insurance
When you get a Variable Universal life insurance policy, you get all the benefits of Universal with the option for variable death benefits. This means that you can invest and alter your insurance coverage with ease. The benefits are that death benefits and premiums are very flexible, the cash value is available to tap into when you want, and you have various investment options. The downside, however, is that investments can be risky, there's interest on loans, and it's typically your most expensive option.
Six of the Best Life Insurance Providers for a 23 year-old
At 23 years old, you are in one of the best positions to shop around and compare pricing between life insurance providers. While you are eligible for some of the best rates for your age, presuming you're healthy, pricing varies from company to company. Here are six of the best options on the market of cheap life insurance providers for 23 years old.
Sproutt is unique because they take a creative approach to life insurance by focusing on five pillars in their methodology: Movement, sleep, emotional health, nutrition, and balance. They find it more beneficial for your overall health and wellbeing, keeping your policy nice and low!
20-year term Policy for $500,000:
- A 23-year-old female will pay an estimate of $55/month smoker and $20/month a non-smoker.
- A 23-year-old Male will pay an estimate of $55/month smoker and $20/month a non-smoker.
SelectQuote is another great option because it has over 70,000 policies to choose from that are really easy to access. They're also known for having very knowledgeable agents, allowing you to tap into decades of expertise to create the best policy for you at just 23 years old.
|10 Years||$500,000||Average Cost of a Life Insurance Policy for a 23 yr old is $11.22/month for a Female and $13.17/month a Male|
|20 Years||$500,000||Average Life Insurance monthly premium for a 23 yr old Female is $15.72 and $19.07 a Male|
|30 Years||$500,000||Average Life Insurance cost for a 23 yr old is $22.88 per month for a Female and $28.21 per month for a Male.|
Many people choose Ethos because you can get same-day coverage, they require very few health questions to apply, and it's 100% online, so you don't have to deal with phone calls and doctors visits. At 23, the last thing you want to add to your schedule is a bunch of appointments — Ethos lets you skip those and get back to school, traveling, or whatever else you enjoy doing.
|20 Years||$500,000||The cost of a Life Insurance policy for a 23 yr old is between $17-$30 for a Female and $23-$37 for a Male|
|20 Years||$1,000,000||The Life Insurance premium for a 23 yr old Female is between $27-$54 and $39-$68 for a Male|
|20 Years||$2,000,000||The Life Insurance rate for a 23 yr old is between $48-$102 for a Female and $71-$129 for a Male.|
Haven Life is known for being very beneficial for young generations looking to the future and preparing. Their policies accommodate as young as 16, offer a great online experience, offer coverage as high as $3 million, and are considered the cheapest online for policyholders under 40-years-old.
|20 Years||$500,000||Average Cost of a Life Insurance Policy for a 23 yr old is $23.80/month for a Female and $33.83/month a Male|
|20 Years||$1,000,000||Average Life Insurance monthly premium for a 23 yr old Female is $32.57 and $42.12 a Male|
|20 Years||$3,000,000||Average Life Insurance cost for a 23 yr old is $85.18 per month for a Female and $113.85 per month for a Male.|
The advantage of working with Bestow is that you don't have to go through an agent to get your life insurance and don't need to apply for any kind of medical exam to be eligible for a plan. All you have to do is answer a few quick and easy questions, and you have complete access to various price quotes dependent on your gender, age, height, weight, zip code, smoker status, coverage amount, and years of coverage.
|20 Years||$500,000||Average Life Insurance monthly premium for a 23 yr old is $18.50 for females and $30.17 for males|
|20 Years||$1,000,000||Average premium of a Life Insurance for a 23 yr-old is $31/month females and $54.33/month males|
|20 Years||$1,500,000||Average Life Insurance premium for a 23 yr-old is $43.50 per month for a female and $78.50 per month for a male|
With Tru Stage, you get a bit of a more personal touch with your life insurance. Since you're only 23 and likely unsure about what you want or need, an insurance agent is available to walk you through the whole process and learn more about your options at such a young age. Customers also rave that the agents are timely and professional when getting back to you about any questions you may have about the entire life insurance process.
|20 Years||$225,000||Average Life Insurance monthly premium for a 23 yr old is $41 for females and $45 for males|
|20 Years||$275,000||Average premium of a Life Insurance for a 23 yr-old is $49/month females and $52/month males|
|20 Years||$300,000||Average Life Insurance premium for a 23 yr-old is $53 per month for a female and $56 per month for a male|
Your Future Is Secured
That's it! You now have the information you need to ensure that your future is secured, and your family will be protected if something were to happen to you now — or 80 years from now — with help from these cheap life insurance providers for when you’re 23 years old. While it's easy to push such topics as life insurance to the side when you're only 23, the best move for your future will always be to prepare ahead of time. In this case, you can save yourself thousands in life insurance by getting started sooner rather than later. Even better, you protect yourself and your family much sooner in life from any unexpected changes in health that may prevent you from getting life insurance altogether or hit you hard with pricing for a policy.