5 Reasons Millennials and Gen Z Should Buy Life Insurance Now

Millennials and Gen Z — young adults born between 1981 and 2012 — are in the prime stages of life to lock in the benefits of life insurance. There’s a wide variety of experiences among these generations -some may already have life insurance to protect their families, while others may not be thinking about it because they are young, single and healthy.
In reality, this is a great time to consider life insurance for young adults – even if don’t have a family or mortgage to think about. Affordable life insurance policies are more accessible when you’re young, and the sooner you purchase them, the better. Here’s why you should purchase life insurance in your 20s and 30s — and what type of life insurance to consider.
One of the most common life insurance myths is that only certain populations — people with a mortgage or children — need life insurance. The truth is that life insurance is actually the ultimate protection and a useful financial tool, even if you don’t have a mortgage or family. You don’t want to think about having to use life insurance when you’re young, but there are plenty of reasons for Gen Z and Millennials to buy insurance now.
One of the biggest reasons to consider purchasing life insurance when you’re young is that your insurance costs are lower. Age and health are two major factors that affect life insurance premiums; when you’re young, you’re usually at your healthiest, and hopefully a long way off from needing to use your policy. That means your premiums are low, and you can lock those rates in for the lifetime of your policy. Your older self will thank you when you’re still paying the rates of a healthy 22-year-old at age 50!
Even if you do not have large, locked-in expenses, such as a mortgage, there are a variety of other things that life insurance can cover, such as funeral costs (the median cost of which in 2025 was $7,360). Life insurance can also help cover any outstanding student loan debt, car payments or credit card debt should something happen to you. The peace of mind that life insurance provides is immense, knowing that should your family have to deal with the worst, they won’t have an additional financial burden.
Life insurance can serve other uses besides paying out a death benefit. Some types of policies can actually help you accumulate money. After paying into certain policy types for a while, you can cash out whole life insurance for a lump sum if you no longer need the protection life insurance offers. Another option is return of premium life insurance, which insures you for a set time period, then returns the premiums at the end of the term.1 Indexed Universal Life policies earn interest based on market performance, so they can accumulate value quickly that you can then use through planned loans2 and withdrawals3.
Though many employers offer life insurance as an employer benefit —and those are good policies to have access to — purchasing own policy ensures you remain protected if you decide to leave your company or lose your job.
A worst-case scenario is that you opt for just your employer-provided life insurance when you enter the workforce, then work somewhere for 20 years before leaving — and all of a sudden, you’re without life insurance during a time when you really need it and are facing higher premiums. Carrying a policy on your own means you’ll be covered no matter what.
Of course, the main reason people purchase life insurance is to protect their loved ones. Even if you don’t need it now, it’s never too early to start planning ahead and protecting your family, now or in the future.
Not all types of life insurance policies are equally beneficial for everyone. Young adults may have an even harder time choosing a policy if they want their life insurance to serve a variety of purposes. Talk to your local Farm Bureau agent about your goals for life insurance. They can help you find options that fit your life now and into the future.