Why Term Life Insurance is the Best Option for a Young Adult

Shawn Plummer

CEO, The Annuity Expert

Term life insurance is often considered the most suitable option for young adults due to its affordability and specific coverage benefits during crucial life stages.

1. Affordable Premiums

  • Cost-Effective: Term life insurance typically offers lower premiums than permanent life insurance options.
  • Budget-Friendly: This affordability makes it an attractive choice for young adults, often on tighter budgets.

2. High Coverage During Key Years

3. Catering to the Most Expensive Years

  • Financial Burden: Young adults face significant financial responsibilities like mortgages, loans, and child-rearing costs.
  • Appropriate Duration: Term life insurance covers these years effectively, providing peace of mind during potentially high-debt periods.

Alternative: Combination of Permanent and Term Policies

  • Blended Approach: Combining a smaller permanent life insurance policy with a term policy can provide lifelong coverage while addressing immediate financial needs.
  • Later Years Security: The permanent policy remains after the term policy expires, ensuring coverage continues into later years, albeit with less need for high coverage.

Term Life vs. Combination Policy

AspectTerm Life InsuranceCombination of Permanent and Term Policy
Coverage DurationFixed period (e.g., 20 or 30 years)Term plus ongoing permanent coverage
Premium CostLower, more affordableHigher due to permanent policy component
Coverage AmountHigher during the termVaries; typically lower in permanent part
Later Years CoverageExpires at the end of the termPermanent policy continues


Term life insurance is an excellent choice for young adults due to its affordability and substantial coverage during life’s most financially demanding years. It provides significant protection for families and key responsibilities. Combining term and permanent policies can be an effective strategy for those seeking a balance of immediate coverage and long-term security.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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