Term Life Insurance: A Must-Have for Gen Z Adults

Many young adults in Generation Z—those between the ages of 18 and 28—are focused on managing daily life. From paying rent and student loans to starting their careers, life insurance often seems like something to think about later.

But experts say term life insurance is something Gen Zers should consider right now, especially if they have a partner, children, or family members who rely on them financially.

A 2025 study by New York Life Insurance found that 64% of Gen Z adults have no life insurance at all. That’s the highest uninsured rate of any generation—even among those who have children or share financial responsibilities with a partner or parent.

For those starting families, the need is growing. In 2025, childcare costs average between $10,000 and $15,000 per child per year, putting added pressure on budgets. If the worst were to happen, a term life insurance policy could provide money for things like daycare, rent, or tuition—helping loved ones stay financially stable during a difficult time.

What Is Term Life Insurance?

Term life insurance is a type of policy that lasts for a specific number of years—usually 10 to 20 years—and pays a set amount of money to your beneficiaries if you die during that time. It’s the simplest and most affordable form of life insurance, especially when purchased young and in good health.

Unlike whole life or universal life policies, which are more expensive and include investment features, term life is designed purely for protection. It’s a way to guard your loved ones from sudden financial burdens.

How Much Insurance Do You Need?

Financial advisors in 2025 often recommend coverage worth 7 to 12 times your annual income to provide enough support for long-term needs. But if you’re young and don’t have dependents, a smaller policy—$100,000 to $250,000—can still cover things like funeral expenses or unpaid debts.

Funeral costs in 2025 range from $10,000 to $15,000. Even if you don’t have children, a life insurance policy can prevent your family from taking on that burden.

What Does It Cost?

Thanks to their youth and good health, many Gen Zers can lock in very low premiums for term life policies—often less than the cost of a monthly streaming subscription.

Here are some example monthly premiums in 2025 for a healthy, non-smoking Gen Z adult buying a 10-year term life policy:

• Men, Age 20: $10–$14 for $250,000 / $18–$24 for $500,000
• Women, Age 20: $9–$12 for $250,000 / $16–$22 for $500,000
• Men, Age 25: $12–$16 for $250,000 / $20–$28 for $500,000
• Women, Age 25: $10–$14 for $250,000 / $18–$25 for $500,000
• Men, Age 28: $14–$18 for $250,000 / $24–$32 for $500,000
• Women, Age 28: $12–$16 for $250,000 / $20–$28 for $500,000

Rates vary depending on your health, location, and insurance provider, so it’s important to shop around.

Why Buy Now?

The younger and healthier you are, the less you’ll pay—and once you lock in a premium, it stays the same for the life of the term. Waiting just a few years can mean higher monthly costs or fewer options if health conditions arise.

Life insurance isn’t just for older people or parents with grown children. For Gen Zers building a future, buying term life insurance now can be one of the smartest and most affordable steps toward long-term financial responsibility.