About Life Insurance
When it comes to insurance coverage and the protections they afford, the types are usually broken down into two (2) categories: Those that you are mandated to have such as auto insurance and health insurance, and those that you can opt in to such as life insurance. Life insurance can be particularly valuable to have, even for young adults who may view it as an extra financial burden.
What is life insurance for young adults?
Life insurance is a contract between you and a life insurance company. You’ll pay a certain amount of money through monthly or annual premiums in exchange for a death benefit that loved ones can receive if you pass away. Your loved ones can use this money to cover expenses like paying off the mortgage to keep your family in their home, raise children, even set aside college funds. The enrollment in life insurance is often associated with key milestones such as getting a job, getting married, becoming a parent, or starting a business. In fact, some young adults may delay getting life insurance until they marry, even though getting insurance at a younger age has great advantages. Securing life insurance when you are young means lower premiums initially, as premiums increase based on age. Additionally, electing life insurance when you and your dependents are initially eligible will allow you to purchase the benefit without completing Evidence of Insurability (EOI) up to the guaranteed issue amount. PEF MBP’s Group Voluntary Life coverage for active, dues-paying PEF members, reduces after age 70. Different levels of coverage are available.
Reasons Why Group Term Life Insurance is Worth it for Young Adults
It costs less
Younger people are generally considered to be healthier with a lower risk of medical conditions, and, thus, less of a risk to insure. Securing life insurance when you are young means lower premiums initially, as premiums increase based on age. Older individuals who purchase life insurance may pay higher premiums for the same amount of coverage. But if you enroll now, when you’re as young as you ever will be, you can take advantage of the lower life insurance rate. The PEF MBP insurance department can provide you with current rates. Enrolling during a modified open enrollment period will also allow you to enroll with no medical questions asked up to the guaranteed issue amount.*
It gives you peace of mind
It’s always better to have financial peace of mind instead of worrying about the future. This is always true, but especially now when prices are high, and inflation has eroded the purchasing power of your dollar. You’ll want to make sure your loved ones are protected should the worst-case scenario arise. You may or may not be married yet, you may or may not have a house, but you may have large debts, such as student loan debt, that a partner or other loved one such as a parent, may have to pay off if you pass away, creating a financial burden for your loved one. As a PEF member in the age range of 20–30, you should be able to obtain $20,000 in life insurance for as little as $.54 per pay period, less than the average price ($3.65) of a regular Starbucks coffee. Therefore, it could be well worth it, particularly if you have family members or beneficiaries who depend on you or if you have a mortgage or other debts that will get passed on in your absence.
How Much Life Insurance do I Need?
It’s wise to consider factors like your income, your debts, and your dependents’ needs when deciding how much life insurance you need. You should also consider how your financial situation may change in the future. For instance, you may get married and have children. You don’t need to factor in every possible goal when determining how much coverage you need, but it’s a good idea to be mindful of what your needs may be in the long term.
Ask yourself these questions:
- Who depends on you? Do you have a partner, children, or aging parents who rely on your income? Their potential financial needs could be a big factor in determining your coverage amount.
- How much debt do you have? If you have car payments or credit card debt, these financial obligations don’t necessarily disappear if you’re gone. Life insurance can help ensure they don’t burden your loved ones.
- Do you want to leave a legacy? Maybe you’d love to fund a younger sibling’s education or leave a generous gift to a charity or organization close to your heart. If so, factor those costs into your coverage amount.
- What’s your income? Whether you’re the primary earner for your household or not, consider how much your loved ones would need to keep their lifestyle if your income isn’t there.
Group Term Life insurance may not be the first thing on your mind, but it’s worth considering as a way to protect the people you care about. It’s like a safety net for your loved ones, ensuring that your responsibilities don’t become financial burdens if something unexpected happens to you. When you’re young and healthy, Group Term Life insurance may be much more affordable than you think, providing coverage for the years you and your loved ones need it most.
Here’s what you need to know:
- Younger generations recognize the value of protecting their financial future. A recent study by LIMRA (Life Insurance Marketing and Research Association) found 44% of Gen Zers plan to buy life insurance in the next year. If you’re one of them, Group Term Life insurance can be a key part of your plan.1
- Many young adults like you are in similar situations. While only 40% of Gen Zers say they have life insurance, almost half recognize they need it or more coverage.2
- Life changes fast. A new job, a growing family, a mortgage—these milestones often bring new financial responsibilities. Group Term Life insurance can help you adapt and ensure your loved ones are protected every step of the way.
Misconceptions About Life Insurance
Life insurance might not be the most exciting topic, but there’s a lot of misinformation out there that can make it seem even more confusing. Here’s the truth behind these misconceptions and answers to common questions.
I’m young and don’t need coverage.
Even if you’re young and healthy, accidents happen, and life throws curveballs. If you don’t have dependents right now, think about your parents, siblings, or close friends. Life insurance is for today as well as the future. Maybe you don’t have a spouse or children or a mortgage right now, but you may in the future and having a policy already in place can help give you peace of mind when life changes do occur.
It costs too much.
You may assume life insurance is out of your budget. But the truth is, Group Term Life insurance rates can be surprisingly affordable, especially when you’re young and healthy. The rates are age-banded, which means the younger you are, the lower the premium.
I’m single with no kids.
Life insurance can still be valuable even if you don’t have dependents right now. It can cover your final expenses, like funeral costs, so your family doesn’t have to worry about paying for it. You may also want to leave a death benefit to your parents to help them with their retirement.
I need to answer medical questions.
Not always! During our modified open enrollment from September 2 to October. 31, you can enroll up to the guaranteed issue amount, with no medical questions asked.
Life insurance is primarily about protecting your loved ones during your prime working years.
Key Features of PEF MBP’s Sun Life Group Term Life InsuranceFootnotes, Additional Details & Disclaimers
1LIMRA (Life Insurance Marketing and Research Association)
2LIMRA (Life Insurance Marketing and Research Association)
Group life insurance policies are underwritten by Sun Life and Health Insurance Company (U.S.) (Lansing, MI) under Policy Form Series 15-GP-01, 13-GP-LF-01, 13-LF-C-01, 12-GPPort-P-01, 13-LFPort-C-01, 15-LF-GP-01, 15-LF-C-01, 12-GPPort-P-01, 15-LFPort-C-01, 13-GP-LH-01 and 13-ADD-C-01.
© 2025 Sun Life Assurance Company of Canada, Wellesley Hills, MA 02481. All rights reserved. The Sun Life name and logo are registered trademarks of Sun Life Assurance Company of Canada. Visit us at Sun Life.
