---
title: Life insurance in your 20s: What You Need and Why
url: https://coverfolk.com/for/in-your-20s
updated: 2026-10-08
---

# Life insurance in your 20s

Your 20s are often the cheapest time in your life to buy life insurance.

[How much do I need?](/calculator)

Updated October 8, 20263 sources[Fact checked](/editorial-standards)

The short answer

If anyone counts on your income or you have shared debt, a term policy now can lock in a low price. If no one depends on you, you may not need much yet.

**71%**Share of Gen Z adults who guessed life insurance costs three or more times what it really does.[Source: LIMRA and Life Happens, 2025 Insurance Barometer Study, Report 1](https://dbs-lifemark.com/wp-content/uploads/study_Insurance_Barometer_Study_2025.pdf)

Most young people think it costs way more than it does. In LIMRA's 2025 study, 71% of Gen Z guessed the price at three times or more what it really is.

Adults under 31 guessed a median of $2,000 a year for a $250,000, 20 year policy. That was about 10 to 12 times the real median price, the study said.

Price goes up as you age and as health changes. Buying young can lock in a rate for 20 or 30 years. Some people also buy now to cover student loans with a cosigner.

## Tips that help

* Get a real quote before you decide it costs too much.
* Buy coverage if a partner, child or parent counts on you.
* Cover any loan a parent cosigned.
* Pick a long term, like 30 years, to lock in the price.
* Do not count only on a work plan. You may change jobs a lot in your 20s.

## Coverage that fits

[**Term life: The most coverage for the least money, for 10 to 30 years.**](/coverage/term-life)[**No exam: Many plans let you skip the needles and the nurse visit.**](/coverage/no-exam)[**IUL: Permanent coverage with cash value tied to a market index.**](/coverage/iul)

## Common questions

Do I need life insurance if I am single?

Maybe not much. You may want some if a parent cosigned your loans or you want to cover a funeral.

How much does it cost in my 20s?

MoneyGeek (updated September 22, 2026) shows $30 a month for a 25 year old woman and $32 for a 25 year old man, for $500,000, 20 year term, nonsmoker, average health. Your quote will differ.

Should I buy whole life now?

Most people in their 20s start with term. The NAIC says term gives lower cost coverage for a set time.

## Sources

1. [LIMRA and Life Happens, 2025 Insurance Barometer Study, Report 1 (hosted copy)](https://dbs-lifemark.com/wp-content/uploads/study_Insurance_Barometer_Study_2025.pdf)
2. [MoneyGeek, How Much Does Term Life Insurance Cost? (2026 Rates)](https://www.moneygeek.com/insurance/life/rates/term-life-insurance-rates-by-age/)
3. [NAIC, What Type of Life Insurance Is Right for You? (September 6, 2023)](https://content.naic.org/article/consumer_insight_what_type_life_insurance_right_you.htm)