Which type of life insurance is typically more affordable for young people?

Term life insurance is typically more affordable for young people due to its structure and purpose. This type of insurance provides coverage for a specific period, or term, usually ranging from 10 to 30 years. Since term life insurance is designed to provide a death benefit to beneficiaries if the insured passes away during that term, it does not accumulate cash value like whole life or universal life insurance policies.

Young individuals often seek coverage primarily for the protection of dependents or to secure financial stability for their families, which makes term life insurance an ideal choice. Additionally, because it is pure insurance without any investment component, the premiums for term life policies are generally lower compared to whole, universal, or variable life insurance options. Consequently, young people benefit from lower rates, making it a cost-effective way to obtain life insurance protection during their most financially vulnerable years.