Best Life Insurance Companies for Millennials in 2019

Life insurance isn’t something many Millennials think about.

Quite the opposite actually – only 10 percent of Millennials have the life insurance coverage they need, making it the least prepared generation for unexpected life events.

But having life insurance is a crucial component for anyone who wants to have a strong financial foundation and achieve their financial goals before they’re middle-aged.

Contrary to what many people seem to think, the best time to buy life insurance is not when you’re older and have several health problems, but when you’re young and healthy – that’s when the rates are at their best.

So, today, let’s talk about why you absolutely need life insurance – and the best life insurance companies for Millennials out there.

Millennial Money’s Top 10 Life Insurance Companies

What’s Stopping You From Getting Life Insurance?

I understand why life insurance is the last thing on young people’s minds. And that’s not only because death and terminal illness are generally something people don’t want to think about until they’re forced to.

Getting life insurance just doesn’t seem like a pressing matter.

Several other financial priorities occupy your time and energy, like the challenge of saving enough for retirement and doing everything you can to retire early.

There’s also getting on the property ladder, and trying out different investments and side hustles to make your money work for you.

I get it – there are many other things on your mind, and life insurance just isn’t a priority right now.

Plus, you’re thinking, “I’m young and healthy, aren’t I? It’s not really necessary.”

And you’re not alone. Many people think like you, which is why the incidence of Millennials who have life insurance is so low.

But not being insured could have serious repercussions should anything unexpected happen.

10 Best Life Insurance Providers for Millennials in 2019

When it comes to life insurance for Millennials, you’ll want to find something that provides sufficient cover but also doesn’t put a strain on your wallet.

So, here are the 10 most affordable life insurance companies for Millennials you’ll want to check out.

The quotes were sourced from Policygenius. They are for Millennials aged 25 and 30, for a 20-year policy worth $500,000, non smoker in excellent health.

Haven Life

Haven Life has created a unique niche in the life insurance world.

They are one of the newer life insurance companies entering the insurance ring (but they are in a partnership with MassMutual, which is over 150 years old).

How is Haven Life different? Well, they think life insurance should be simple.

Life insurance can be complicated, but buying it doesn’t have to be. Haven Life prides themselves on how quickly you can apply for coverage.

For products, you can buy term life insurance up to $3 million, as long as you’re under 60.

Cost:

  • Age 25: $19.03
  • Age 30: $19.46

Pros

  • Speed. Haven Life is one of the quicker applications out there
  • Easy to apply. You won’t have to jump through a million hoops to apply.
  • Coverage limits. Higher than average coverage limits.

Cons

  • Limit policy options. As long as you want term, you’ll be happy – because that’s the only option.
  • Only for the healthy. Because of how quick the application is, Haven Life isn’t perfect for people with health problems.

Haven Life Haven Life provides a simple application process and higher than average coverage for healthier individuals. Compare Rates Now Haven Life

Banner Life

Banner Life is an insurance option provided by Legal & General America. It’s one of the best-rated companies and the most cost-effective insurance option for Millennials.

Cost:

  • Age 25: $24.95
  • Age 30: $25.80

Pros

  • Excellent health condition cover. It’s a good option to consider if you have medical issues (for example, diabetes, high cholesterol, etc.) or are a former tobacco user.
  • Electronic application. No need to go anywhere – get insured without lifting yourself off the couch.
  • Policy delivered by email. If you’re someone who hates paper clutter – then this is a bonus.
  • Great customer service. They are also highly ranked for their customer service.

Cons

  • No online policy cancellation. You can’t cancel a policy online – you’ll need a notarized paper form.

Banner Banner is one of the most cost-effective life insurance options for Millennials. Learn More Banner

Protective

Protective was founded in 1907 and is now one of the highest-rated insurance companies in the U.S.

What they offer is a unique universal life insurance policy which is somewhat similar to a term life policy. It acts as a term policy at first – then converts to a permanent policy after the agreed term.

Cost:

  • Age 25: $24.96
  • Age 30: $25.81

Pros

  • Good health condition cover. The cover for various medical issues Protective offers may not be as great as offered by Banner Life, but it’s still pretty good.
  • Shorter than the average application form. No need to fill in a long (and tedious) application form with Protective – it’s short and sweet.
  • Policy delivered by email. You won’t receive paper documents – just a quick email.

Cons

  • Slow approval. That said – if you want life insurance here and now, Protective may not be your best choice. Their application approval can be quite slow.

Protective Protective is one of the highest-rated insurance providers in the United States. Learn More Protective

AIG

AIG is an excellent option for Millennials because of how quickly they process applications. It’s also different from other providers because it allows you to choose non-standard term lengths.

Cost:

  • Age 25: $25.22
  • Age 30: $25.94

Pros

  • Wide range of policies. AIG offers whole life, universal, and term policies.
  • Award-winning company. In 2015, AIG scooped up four awards at Global Finance’s World Best Global Insurers awards!
  • Faster-than-average approval. You can go from application to signed policy super quickly.
  • Non-standard term lengths. While most other companies offer standard term lengths (10, 15, 20 years, etc.), with AIG, you can choose non-standard ones, such as 18 or 22 years, for example. It’s good to have the option.
  • Online actions. You can perform a variety of tasks online – from updating your beneficiaries to changing payment info.

Cons

  • Application process. Not terrible, but could be better.
  • No online policy cancellation. You’ll need to phone to cancel.

AIG AIG is an award-winning provider with excellent options and features for Millennials. Learn More AIG

Transamerica

Transamerica stands out from other providers with its unique policy options that would be very beneficial in the case of a chronic or terminal illness.

Cost:

  • Age 25: $25.37
  • Age 30: $26.23

Pros

  • Living Benefits. Term life products which you can access early in case of terminal or chronic illness.
  • Income Protection Options. You can select from a variety of income stream and lump sum pay-outs for beneficiaries.
  • No need to do a medical exam. Not required for policies below $250.000.
  • Low minimum face amount (minimum death benefit). With Transamerica, the minimum death benefit an investor is required to purchase is $25.000.

Cons

  • Health cover. If you have certain health conditions (such as diabetes or high cholesterol), you may be issued a lower rating and pay higher rates.
  • Policy delivered by mail. Yup, you’ll receive another pile of papers.

Transamerica Transamerica offers unique policy options for people with a chronic or terminal illness. Learn More Transamerica

SBLI

SBLI offers speedy application turnaround time – but has limited online functionality.

Cost:

  • Age 25: $25.12
  • Age 30: $25.97

Pros

  • Fast-track process. If you don’t have any medical issues, your application will be processed super quickly.
  • Good for people with specific health conditions. SBLI offers competitive underwriting for people with hypertension, family history of gender-specific cancers, and anxiety.

Cons

  • Limited digital functionality. You can update address and payment info online – but everything else requires a paper form, which seems a little outdated.
  • Policy delivered by mail. I’d prefer to have mine sent via email, thanks.

SBLI SBLI has a fast application process and offers competitive rates for several health conditions. Learn More SBLI

Principal

Principal is great if you don’t have any health conditions – and want to take out a larger policy amount.

Cost:

  • Age 25: $27.56
  • Age 30: $27.69

Pros

  • Competitive policies for healthy applicants. If you don’t have any medical conditions, Principal is worth considering.
  • Widely available. Principal offers insurance products in all 50 states.
  • Great for more substantial term life policies. If you want to take out a term life policy for a larger amount, Principal offers competitive pricing.
  • Suitable for applicants with medical conditions. Interestingly, Principal also offers good and excellent coverage for people with medical conditions.
  • Fast application approval. You can get your application approved in just 15 days!

Cons

  • Policy delivered by email. Yup, more
  • Can’t update beneficiaries online. You guessed it – you’ll need paper forms.

Principal Principal offers competitive pricing for healthy individuals who need a larger policy. Learn More Principal

Mutual of Omaha

Mutual of Omaha is also great for applicants with a range of health conditions.

Cost:

  • Age 25: $28.17
  • Age 30: $28.17

Pros

  • Competitive underwriting for health conditions. These include high benefits for accelerated death. This means that people who have been diagnosed with a terminal illness can access a portion of their policy’s death benefit while alive.
  • Award-winning employer. This doesn’t affect you directly, but isn’t it good to know your insurer is a great place to work?

Cons

  • Not great for former tobacco users. If that’s you, you could get a lower rating and have to pay higher rates.
  • Slower than the average application process. The process could be a little speedier. In this area, Mutual of Omaha is outperformed by insurers like Principal.

Mutual of Omaha Mutual of Omaha is a great option for a variety of health conditions. Learn More Mutual of Omaha

Lincoln Financial Group

Lincoln Financial Group is more expensive than most the other providers I’ve listed – but it is a worthwhile option if you have a medical condition.

Cost:

  • Age 25: $32.38
  • Age 30: $35.18

Pros

  • Competitive rates for people with medical conditions. Lincoln Financial Group offers competitive underwriting for several substantial health conditions.
  • Selection of riders available. You can personalize your policy with a varied range or riders.
  • Quick approval. LFG does offer faster than average application approval (20 days).

Cons

  • Mostly offline. You won’t be able to change any of your information online, so get ready for paper forms and calls with customer service agents.
  • Longer-than-average application form. If you hate forms and think simplicity is key, you may want to look elsewhere.

Lincoln Financial Lincoln Financial offers competitive coverage for people with medical conditions. Learn More Lincoln Financial

Prudential

Prudential is one of the best life insurance providers for people with complicated medical histories (like cancer or diabetes).

Cost:

  • Age 25: $37.19
  • Age 30: $39.38

Pros

  • Living Needs Benefit. Prudential has a policy which makes part of the death benefit accessible if you have been diagnosed with an illness with a maximum life expectancy of 6 months or confined to a nursing home.
  • Award-winning insurer. In 2016, Fortune magazine named Prudential #1 Life or Health Insurance company. It was also named the World’s Most Ethical Company in 2015.
  • Quick turnaround times. Application turnaround time is faster than average (23 days).

Cons

  • More expensive than other providers. Compared to the other providers I’ve mentioned, Prudential rates are much higher.
  • Phone interview during application. The application process includes a phone interview with an underwriter – which many other providers don’t require.

Prudential Prudential is one of the best life insurance companies for people with medical conditions. Learn More Prudential

5 Reasons You Should Buy Life Insurance Right Now

Let me tell you the reasons why you should buy life insurance right now:

#1. Your family will be protected.

The last thing you would want is to leave your parents with a heavy debt burden on their shoulders because of your record-breaking student loan. For example, if your parents took out a PLUS loan – the balance would fall on them if you suddenly passed away. Or maybe you’re married and have accumulated other types of debt. That debt would then land on your spouse’s plate, and they would need to handle it alone. Finally, did you know that, on average, funerals cost between $7,000 and $9,000? That’s quite an expense to spring on someone. Buying a sufficient life insurance cover could take care of all these things.

#2. Your business will be protected.

If you’re an entrepreneur, you’ll know that running a business requires a lot of Business life insurance may help protect the equipment and the premises should something unexpected happen to you. There are many different business life insurance covers available – but the main premise is that, after the death of the business owner, a lump sum would help cover business loans and other business debts.

#3. You would be saving money in the long term.

Life insurance premiums increase with age – which is why getting life insurance when you’re young would be the smartest thing. You would be saving money in the long run.

#4. Some policies may offer built-in savings.

Some policies, like a whole life insurance policy, act as a permanent life insurance coverage until your death, which grows tax-free and accumulates cash over time. In other words, it’s like a savings vehicle.

#5. Not having it isn’t financially smart – it’s a gamble.

Yes, there’s a chance your life insurance won’t pay out – but that’s not a good enough reason to risk leaving your loved ones on the hook if you suddenly die. It may feel like you’re throwing money away, but not having life insurance is a questionable gamble that nothing will happen to you.

Things to Consider When Looking for Life Insurance

So now that you know about the best life insurance companies and the reasons to have coverage, here are a few things you may want to consider when deciding which life insurance company to use.

  • Your health. Is the insurer a good match for your health? Some companies offer better premiums for people with complex health histories. Make sure you know what your options are so that you don’t end up spending more than you should.
  • Digital features. Millennials have a reputation for doing everything on their smartphones – and there is some truth to that. You’re likely to spend years dealing with the same insurance provider, so make sure you’re clear about what you want in terms of their online features. If you hate speaking to customer service providers on the phone, you may want to limit your choices to companies that allow you to perform actions like changing addresses, payment info, and other things online.
  • Types of policies and riders. Make sure you’re aware of the types of policies and riders each company offers so that you make an informed decision. Some companies will return your premiums at the end of your policy term – while others may allow you to access your death benefit early. Before you make a decision and commit to one company, make sure you know exactly what they offer.
  • Knowing how quickly you need your life insurance can give you a pretty good idea of which provider to go for. Some have longer application processing times – while others could have your policy ready within a few weeks.

Get The Right Type of Life Insurance For Your Needs

There are more types of life insurance policies than you can imagine – but to save time, we’ll look at the main ones. There are three main types of life insurance you need to know about – whole, universal, and term.

Whole Life Insurance

Whole life insurance policy sits under the umbrella of permanent life insurance and covers you for the rest of your life. There is a guaranteed cash value accumulation, and there will be a payment to your dependants regardless of when you die.

Whole life insurance generally costs more than other types of insurance policies, because it is guaranteed to pay you at some point in the future. It won’t be the most cost-effective option – but it is reassuring to know your family would get a lump sum when you pass away, provided you have paid your premiums.

Universal Life Insurance

The universal policy falls under the same blanket of insurance as a whole insurance policy, but it gives you the flexibility when it comes to the premium you pay, the savings element of the policy, and the death benefits. You can adjust your premiums and death benefits.

Universal life insurance policy can also accumulate cash value – which policyholders may access without affecting the guaranteed death benefit.

Term Life Insurance

Term life insurance is essentially a coverage for a certain period of time (for example, the next 10, 20, 30 years). If the insured dies during the time period specified in the term policy (and the policy is active) – then a death benefit will be paid.

It is much less expensive than a whole life insurance policy, making it a great choice if you’d like a life insurance cover without having to invest a pretty penny.

I think term life insurance policies are an ideal option for Millennials. Not only because they’re more affordable, but also because of the flexibility they provide. You can choose how long you want the cover for, which gives you more control.

Finding The Best Life Insurance Policy

Life insurance may not be something many Millennials think about – but hopefully, you now understand why I think it’s smart to do so.

When looking for the right life insurance policy for you, you need to find one that offers sufficient coverage without adding a substantial amount to your monthly spend. I hope that this list of best life insurance companies for Millennials will give you a better idea of what types of coverage you could get from each, and which company would be the most suitable choice for you.

To sum up, I know that, when it comes to life insurance, we often think, “I’ll do it when I get to it. I understand why we put it on the back-burner, and I’ve been there myself. But taking out life insurance can provide peace of mind to you and others around you. And the sooner you get it – the better.

And now – onto lighter topics! Need help finding the best deals on auto insurance? Check out my post Best Car Insurance Companies in 2019 to discover the best providers.

Grant Sabatier

Creator of Millennial Money and Author of Financial Freedom (Penguin Random House). Dubbed "The Millennial Millionaire" by CNBC, Grant went from $2.26 to over $1 million in 5 years, reaching financial independence at age 30. Grant has been featured in The New York Times, Wall Street Journal, BBC, NPR, Money Magazine and many others. He uses Personal Capital to manage his money in 10 minutes a month.

Latest posts by Grant Sabatier (see all)

Posted in: Insurance, Life Insurance

2 Comments
    Chris Acker, CLU, ChFC
    Posted Aug 19 2019
    Hi Grant. Nice overview of some of the top life insurance carriers in the business. I find it interesting that you single out some of the carriers for offering "living benefits" for terminal illnesses- virtually ALL carriers offer this FREE rider on their life insurance policies. In fact, if you own and old policy, most carriers will add a living benefit rider to the existing coverage AT NO COST.
      Grant Sabatier
      Grant Sabatier
      Posted Aug 29 2019
      Thanks Chris. This is really helpful to know. I didn't realize that most carries would add it to an old policy. I appreciate you sharing.

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