Navjot Brar | Aug 27 2026 19:00
Think You’re Too Young for Life Insurance? Here’s What You May Be Getting Wrong
When you're young, life insurance may not be at the top of your financial to-do list. Between building a career, paying down debt, saving for a home, investing for the future, and managing everyday expenses, life insurance can feel like something to think about later.
But many young adults may be making that decision based on misconceptions rather than actual numbers.
According to the 2025 Insurance Barometer Study from LIMRA and Life Happens, healthy adults between ages 18 and 30 estimated the cost of a $250,000, 20-year level term life insurance policy at approximately 10 to 12 times its actual median cost. That gap between perception and reality is worth paying attention to.
Before deciding you're too young, don't need coverage, or can't afford it, here are a few common misconceptions worth reconsidering.
Misconception #1: Life Insurance Is Too Expensive
One of the biggest misconceptions surrounding life insurance, particularly among younger adults, is cost.
LIMRA's 2025 research found that perceived cost remains one of the primary reasons younger consumers don't own more life insurance. Nearly half of Millennials (48%) and 39% of Gen Z adults cited perceived cost as a reason for not owning more coverage.
The problem is that perceived cost and actual cost can be very different.
Life insurance premiums are determined by several individual factors, which may include:
-
Age
-
Health and medical history
-
Tobacco use
-
Type of policy
-
Amount of coverage
-
Length of coverage
-
Underwriting and other risk factors
Because of this, an online average or a friend's premium doesn't necessarily tell you what your coverage would cost.
For a healthy young adult, coverage may be more affordable than expected. The best way to find out isn't to guess. It's to look at personalized options based on your circumstances.
Misconception #2: “I’m Young, So I Can Wait”
Being young can actually be an advantage when purchasing life insurance. Age and health are important factors insurers consider when determining eligibility and premiums. Generally, applying when you're younger and healthier can result in more favorable pricing than waiting until later in life.
Consider two versions of yourself.
One applies for coverage while young and healthy. The other waits 10 or 15 years.
Your income may be higher in the future, but your age will also be higher, and your health may have changed. A new medical diagnosis or other change in health could affect your eligibility, policy options, or cost. Certain types of coverage allow you to lock in a premium for a specified period, while some permanent policies are designed to provide lifelong protection as long as policy requirements are met.
Buying earlier isn't automatically the right decision for everyone. But being young isn't necessarily a reason to postpone the conversation either.
Misconception #3: Life Insurance Is Only for Parents
When people hear "life insurance," they often picture parents protecting young children. That's certainly an important use for life insurance, but it's far from the only one.
Ask yourself a different question:
Would anyone experience a financial burden if you were no longer here?
Depending on your situation, life insurance could help provide funds for a spouse or partner, outstanding financial obligations, final expenses, or other people who depend on you financially. Your need for coverage can also evolve.
At 25, your primary concern might be protecting a partner or addressing certain financial obligations. Later, you may get married, buy a home, start a business, have children, or take on additional financial responsibilities.
Life changes, and your financial protection strategy can change with it.
Misconception #4: Buying Life Insurance Is Too Complicated
Cost isn't the only area where younger consumers report uncertainty.
According to LIMRA, fewer than one-quarter of Gen Z and Millennial adults surveyed said they were knowledgeable about life insurance underwriting. Roughly one-third also reported being unsure about how much coverage they need or what type of life insurance to purchase. That's understandable.
Terms such as term insurance, permanent insurance, death benefit, cash value, underwriting, riders, and beneficiaries can make a relatively straightforward goal feel complicated.
You don't need to become an insurance expert before exploring your options.
A financial professional can help you understand what different policies are designed to accomplish, compare potential options, and determine whether coverage makes sense based on your goals and financial situation.
Misconception #5: “I Have Life Insurance Through Work, So I’m Covered”
Employer-provided life insurance can be a valuable benefit, but it shouldn't automatically be assumed to provide all the protection you need.
LIMRA reports that a majority of working adults with life insurance have coverage available through their employer.
The important question is not simply whether you have a policy. It's whether the amount and structure of that coverage are appropriate for your needs.
For example, consider:
-
How much coverage does your employer actually provide?
-
Would that amount be enough for the people who depend on you?
-
What happens to the coverage if you leave your employer?
-
Do you have financial responsibilities that require additional protection?
Workplace coverage can be one part of your financial protection strategy, but it's worth understanding exactly what you have.
The Bigger Mistake May Be Making the Decision Without the Numbers
Life insurance isn't something every young adult needs in exactly the same way. The important part is making an informed decision.
If you assume coverage is too expensive without getting a quote, you may be basing a long-term financial decision on a misconception. If you assume you don't need it because you don't have children, you may be overlooking other people or obligations you want to protect.
And if you're waiting simply because you believe life insurance is something you're supposed to buy when you're older, you may be overlooking one of the advantages you have today: your age.
Instead of starting with "Do I need life insurance?", consider starting with a few different questions:
Who or what would I want to protect?
How much protection would make sense?
What would coverage actually cost me today?
Once you have those answers, you can decide whether life insurance deserves a place in your overall financial plan.
Curious What Coverage Could Look Like for You?
You don't have to make a decision before understanding your options. At Benefit Consultant Inc., we can help you explore the numbers, understand the different types of coverage available, and determine what may fit your current needs and longer-term financial goals.
Whether you're starting your career, building a family, buying a home, growing a business, or simply becoming more intentional about your financial future, a conversation can help you understand where life insurance may fit.
Contact our team to request a personalized life insurance review and explore your options.
