Do young people need life insurance?

A group of young adults hiking up a hill

June 8, 2021

When it comes to thinking about life insurance when you’re under 30, it’s probably not a subject that you really feel ready to broach. After all, you’re still incredibly young, so why should you be thinking about what is the best type of life insurance for a young person?

If you are wondering whether or not you need life insurance then you’re probably already aware that it’s a good thing to look into, regardless of how old you are.

In our guide to life insurance for young adults, we talk about why you should buy insurance when you are young, what the minimum age for life insurance is and answer the question “is it worth getting life insurance in your 20s?”.

Why should young people take out life insurance?

There are many reasons why young people should take out life insurance. Life insurance is usually synonymous with older people, typically those aged 50 and over, who are coming into their later life who want to ensure that their loved ones are protected in the event of their death.

However, as a young person, especially if you’re starting to gain more responsibility such as owning a home or becoming parents, life insurance is something you should definitely be thinking about.

Life insurance for new parents is one of the most common reasons for the purchase of a life insurance policy amongst younger generations, as it helps give them peace of mind that their child or children will be well looked after (financially) if they die.

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The benefits of life insurance for young people

There are many benefits of taking life insurance out at a young age; check out some of the most obvious benefits below:

  • You can usually benefit from very low premiums, especially if you’re fit and healthy.
  • Your premiums won't change when you're older (unless you have a decreasing term policy where the premiums will go down).
  • You’ll have the comfort of knowing your family will be looked after and covered from a young age.
  • If you’ve got dependents who rely on you, you know that they’ll be looked after under your life insurance premium and you don’t have to worry about taking out a policy at a later age.

At what age should you get life insurance?

There’s no set age at which you should get life insurance; it’s all down to personal circumstances and preferences.

However, if you are in the position of purchasing your first home, you may find that your mortgage provider will require you to have a life insurance policy in place when you buy a property. So, even if you’re 23 years old and looking to buy your first home, you might have to start thinking about life insurance then.

Read more: What is the best age to get life insurance?

Can you get life insurance at 18?

The legal minimum age for getting life insurance in the UK is 18-years-old, so if you feel like you’re ready to take the next step in your life as soon as you turn 18 (such as getting married, buying a house or having a baby, for example), then as long as you’re 18 or over, you can take out a life insurance policy.

How much is life insurance for a 30-year-old?

The cost of life insurance for a 30-year-old is dependent on factors such as the amount of cover you need, the type of policy you’re looking for, your health and your lifestyle.

It’s not just your age that affects the cost of life insurance, it also depends on the type of lifestyle you live and how healthy you are. For example, if you’re a smoker, your life insurance premiums are likely to be higher as you’ll be deemed to be more “at-risk”. 

In order to find out how much life insurance will cost you if you’re 30, compare quotes from different providers to find the best policy for you. 

You might like: How much does life insurance cost?

Should I get life insurance in my 20s?

The question of whether you should get life insurance in your 20s can only be answered by you as it depends on your own personal circumstances. 

If you’re in your 20s and you’re in the position of buying your first house or becoming a parent for the first time, then taking out a life insurance policy might be something that you want to consider in order to ensure your family is protected should anything happen to you.

The different types of life insurance for young people

If you’ve thought about taking out life insurance as a young person, but you’re not entirely sure what kind of policy will be best suited to you, take a look at the different types of life insurance below so that you’re better informed.

Decreasing term life insurance

This is usually one of the cheapest types of life insurance that pays out less, the more time goes on. It’s usually taken out to cover a specific type of debt, such as a mortgage, so that in the event of your death, your loved ones won’t have to worry about paying off a whole chunk of your mortgage as it will hopefully already be covered under this policy.

Level term

This insurance works by you choosing the size of the payout, known as the “sum insured” and the length of time that you want the policy to last for. Your dependants will then be paid the lump sum whenever they need to make a claim once you die.

Learn more: Level term vs decreasing term life insurance

Whole of life

Whole of life cover does exactly what it says in its name and covers you for the entirety of your life, so whenever you pass away, your loved ones will recieve a tax-free lump sum upon your death. This means it’s usually one of the most expensive types of life insurance because it covers you for so long.

How to get a life insurance quote

In order to find the best life insurance policy for you, it’s always a good idea to carry out as much research as possible before committing to a policy and you should always compare life insurance quotes from numerous providers to get the best value policy suited to you.

Get a quote

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