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Why Waiting to Get Life Insurance Could Cost More Than You Think

Many people in their 20s or 30s delay getting life insurance because they feel young, healthy or don't yet have dependents. However, buying earlier can be a cost-effective decision.

Key Takeaways

  • Life insurance premiums increase with age: A 20-year, $500,000 term policy for a healthy 25-year-old male costs about $25/month, at 35 costs $28/month, at 45 costs $56/month, and at 55 costs $137/month.
  • Poor health can significantly increase rates – at age 45, a male in good health pays $56/month while one in poor health pays $89/month for the same coverage.
  • Healthy adults under 30 can pay less than $200 per year for $250,000 of term life coverage (Life Happens).
  • Younger applicants often qualify for accelerated or simplified underwriting without a medical exam, making the process faster and easier.

Does it matter when you get life insurance? Yes, buying earlier may give you more options, lower rates and more time to build protection for future responsibilities.

Quick takeaway: One of the main benefits of life insurance is that buying earlier may help you lock in lower premiums while you’re younger and in better health.

The financial risk of putting off life insurance

Many people delay buying life insurance until they have children or are more financially established, but waiting can be a mistake. There are three key reasons why:

1. Policies generally get more expensive with age

Regardless of what type of life insurance you choose – term or whole life – premiums generally increase with age.

For example, say you're in good health and want to buy a 20-year, $500,000 term life policy. If you're 25 and male, the policy could cost just $25 per month for the length of the policy. Wait until you're 35, and the premiums may rise to $28 per month. If you purchase a policy at 45, the premiums jump to $56, which is more than double the cost of a policy for a younger applicant.

Age at issueMaleFemaleWhat it shows
25$25$20Buying earlier may help you start with a lower premium.
35$28$23Even a 10-year delay can raise costs.
45$56$44Waiting longer can significantly change affordability.
55$137$99Rates often rise as age-related risk increases.
65$450$316Late applications may face much higher premiums.

Quotes assume a 20-year term and $500,000 death benefit.

2. Health issues are more likely to hamper getting coverage

When you purchase a life insurance policy, the insurer will review your medical history, and it may require a medical exam. If you have existing health issues, such as a heart condition or high blood pressure, the insurer may charge higher premiums.

In general, younger adults are healthier than older people and are less likely to have health issues or preexisting conditions, so coverage is generally less expensive.

As you age, your risk of developing health issues rises. If you develop any such conditions before purchasing coverage, your policy will likely be much more expensive. For example, below are the sample rates for an adult in good health compared with one whose health is poor:

Age at enrollmentGood healthPoor health
25$25$36
35$28$41
45$56$89
55$137$220
65$450$700

Quotes are based on an adult male.

3. Getting a policy can be a faster, easier process

Younger adults are generally healthier, making it easier and often faster to purchase coverage in your 20s or 30s. Many insurers offer accelerated or simplified underwriting for young, healthy adults, so you can purchase coverage without a medical exam.

With some insurers, you can complete your application and receive approval within minutes. That can be one of the overlooked benefits of getting life insurance when you’re young; the process may be simpler if your health history is more straightforward.

As you get older or develop health conditions, you can usually still qualify for life insurance. However, the process can be more intensive and time-consuming. You may have to undergo a medical exam, complete with bloodwork, and the underwriting process can take days or even weeks.

Benefits to purchasing life insurance while you’re young

As a young adult, just starting out in your career, you may be on a tight budget. The idea of taking on premiums for life insurance may seem impossible, but it can be a worthwhile investment for the following reasons:

1. It’s less expensive than you might think

Life insurance is often less expensive than many people expect. Life Happens, a nonprofit professional association for the life insurance industry, reported that healthy adults under the age of 30 pay less than $200 per year for $250,000 of term life coverage. When you buy life insurance, you can secure a low rate for the duration of the policy term selected.

2. You can lock in a policy

Purchasing life insurance becomes more difficult with age or health issues. Buying when you're young and healthy lets you lock in premiums for 20 years or more without worrying about rising premiums. 

3. It can provide peace of mind

With life insurance in place, you’ll have more reassurance about the future. Whether you have children or are caring for aging parents, a life insurance policy can help support loved ones financially.

Quick checklist for young adults:

  • Lock in lower premiums while you're young and healthy 
  • Choose a term length that matches your anticipated financial responsibilities (e.g., 20-30 years) 
  • Consider accelerated underwriting options. Depending on your age, coverage selection and health care factors that may not require a medical exam.
  • Review coverage again after major life changes (marriage, children, home purchase) 

If you’re exploring options, you may also want to review how much life insurance you need, how life Insurance rates are determined and find out if you need life insurance.

FAQs about buying life insurance when you're young

Yes, it can. Buying earlier may help you qualify at a lower rate, especially if you’re younger and in good health. Waiting can mean higher premiums or a longer underwriting process.

Common benefits of life insurance for younger adults include lower premiums, a better chance of qualifying while healthy and the ability to put protection in place before major life changes happen.

Buying young may help you lock in lower costs, keep coverage in place through key life stages and reduce the chance that future health changes will affect your options.

Often, yes. But depending on your age and health, coverage may cost more or require more underwriting steps than it would have earlier.

It depends on your financial goals and whether anyone would be affected financially by your loss. Some people buy coverage early to protect future insurability, cover debts or support loved ones later on.

Also of Interest

Your Policy, Policy Declarations or Amended Declarations in effect on the date of loss is the primary source of reference for your coverage, coverage limits and deductible amounts. This inclusion of non-Amica companies, products, services or statement herein (“Third-Party Content”) is for general informational purposes only and does not constitute a recommendation or endorsement by Amica Insurance. Policies, views, opinions or positions of Third-Party Content expressed herein are those of the authors and do not necessarily reflect the policies, views, opinions or positions of Amica Insurance. Amica Insurance makes no warranties, expressed or implied, as to the accuracy and reliability of Third-Party Content. This content may contain helpful tips, explanation and advice. Your use of this information is voluntary and may not be effective in every circumstance. Amica encourages you to use good judgment and put safety first. For more information on our editorial process and content standards, take a look at our editorial guidelines.

ALIC07325 Mar-27

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