Should a 18 year old get life insurance?

Asked by: Kayla Daugherty  |  Last update: October 14, 2025
Score: 4.5/5 (22 votes)

Life insurance for young people is a particularly good idea if you have dependents who rely on your income, you have a lot of debt, or you want to lock in lower premiums while you're young and generally healthy. If you are younger when you buy your policy, you may qualify for lower premiums.

Should I get insurance at 18?

It's a good idea for 18-year-old drivers to buy a full coverage policy. Young drivers are more likely to get into an accident, and full coverage insurance helps pay for damage to your own car.

What happens to life insurance when child turns 18?

Once your child becomes an adult, you can transfer the policy to them. Adult children may be able to maintain these policies until the child is between the ages of 18-25. After that, they can turn their policy into an individual whole life insurance policy.

At what point is life insurance not worth it?

If you have no dependents, lots of money, and no estate that needs liquidity, then you don't need life insurance unless you need it for business purposes. In general, if you have no children or others you're financially supporting, most people don't need life insurance.

At what age should you drop life insurance?

At What Age Is Life Insurance No Longer Needed? Life insurance is no longer needed for many people once they reach their 60s or 70s. At this point they have retired, their kids have grown up, and they've paid off their mortgage and other debts.

How Does Life Insurance Work?

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How long do you need to have life insurance before it pays out?

Insurance companies can delay payment for six to 12 months if the insured party dies within the first two years of the policy.

What happens if you don't have life insurance?

What Happens If You Have No Life Insurance? Those without life insurance may pass away with financial obligations such as debts and unpaid bills that become the responsibility of their heirs. Their heirs would also need to pay for your final expenses out-of-pocket.

What is the downside of life insurance?

Cons of life insurance

One disadvantage of life insurance is that the older you are, the more you'll pay for a policy. This is because you're more likely to pass away during the policy period than a younger policyholder and will, in turn, cost the life insurance company more money.

Does life insurance affect your credit score?

Getting multiple life insurance quotes won't affect your credit score, so there's no need for concern there. Ask the insurance company about the underwriting process and what type of credit inquiry they may perform. This can help you prepare for any potential impact to your life insurance application.

Does your money grow in life insurance?

Your cash value grows based on a fixed interest rate set each year in your policy by the company. Some whole life policies let you pay premiums for a shorter time, such as 15 years or until you reach age 65. Premiums for these policies are higher because you make premium payments during a short time frame.

Do 18 year olds need life insurance?

Life insurance for young people is a particularly good idea if you have dependents who rely on your income, you have a lot of debt, or you want to lock in lower premiums while you're young and generally healthy. If you are younger when you buy your policy, you may qualify for lower premiums.

Can parents kick you off insurance at 18?

The Affordable Care Act requires plans and issuers that offer coverage to children on their parents' plan to make the coverage available until the adult child reaches the age of 26.

Why would a parent take out a life insurance policy on their adult child?

Parents or grandparents often get life insurance on their children and grandchildren. The insurable interest would kick in if the child were to pass away before the parent. Parents could suffer financially should they need to pay for unexpected medical bills, funeral costs and other final expenses.

Is it better to stay with your parents insurance or be with your own at 18?

Once you turn 18, your health care bills are ultimately your responsibility, and so is having health insurance coverage. Getting your own policy through your employer or school may even be cheaper or offer better coverage than staying on a parents' policy until you age out.

What is the cheapest insurance for a 19 year old?

Travelers and State Farm have the cheapest car insurance quotes for most young drivers. This includes teens on a parent's policy and teens on their own. USAA has the cheapest rates overall, but it's only available to teens in military families.

Is it bad to be declined for life insurance?

If you're denied life insurance, take comfort in the fact that you're not alone—and that there are options. People are typically denied life insurance because they fall into a high-risk category. This is often due to health challenges like diabetes, obesity or a previous diagnosis of serious disease.

Do credit cards give life insurance?

Mahavir Chopra, Founder, Beshak.org, an insurtech platform, said, “Many credit card and debit card companies do have life insurance, accident insurance, or a cyber insurance cover as part of their value-added offerings.

What is the score for life insurance?

An insurance score is a credit rating used by insurance companies to assess a potential insured consumer's level of risk. The insurance score is one of the primary determinants in how much monthly insurance premium the consumer will be assessed. Scores range between 200 and 997, with low scores reflecting higher risks.

Who should not get life insurance?

If you have no financial obligations at your death, have no spouse or dependents that rely on your income now or in the future, or you own no property or business that would need to be purchased at your death by your business partners or liquidated for income needs, then you may not need life insurance.

Is it better to save or have life insurance?

Using this very simple example of the most typical use of life insurance against a similar amount paid into a basic savings account, it is easy to see that for at least the first two decades, the life insurance policy provides a far better level of security than savings.

What are 2 disadvantages of whole life insurance?

A more complex product than term life insurance. Higher premiums than term life insurance. Could be costly if coverage lapses early.

What age should you get life insurance?

As we age, we're at increased risk of developing health conditions, which can result in higher mortality rates and higher life insurance rates. You'll typically pay less for life insurance at age 25 than at age 40. Waiting until age 60 may mean an even bigger rate increase and limited policy options.

What happens to someone who dies with no money?

The burial may take place in a designated section of a cemetery reserved for indigent burials or in a communal grave. In some cases, your remains may be cremated, and the ashes may be interred or scattered in a designated area.

What not to say when applying for life insurance?

Tobacco use: Lying about smoking on a life insurance application likely constitutes a misrepresentation, even if you only smoke occasionally. Drug and alcohol use: Someone who engages in drug or alcohol misuse may omit this information.