Are you aged under 30 with a mortgage or people who depend on you financially? Safeguard your family’s future with young adult life insurance from less than £5 a month.
You’re never too young to start thinking about the future. Whether you’re planning to buy a home, start a family, or continue your education, there’s no better time to learn more about your options than the present.
However, if you’re yet to turn 30, thinking about life insurance might seem a bit premature. After all, for most young and healthy people, dying is likely to be decades away, so why take out a policy now?
Typically, life insurance for young adults is cheaper than policies designed for older people, meaning you may pay less over the course of your life. Young adult life insurance can also help you to secure a mortgage more easily and provide security for anyone that depends on you for financial support.
What Age Should You Get Life Insurance?
The age you take out life insurance will depend on your personal circumstances and needs. While taking out a policy when you’re younger is likely to be cheaper, it may not be the right decision for everyone.
Life insurance premiums often increase the most after the age of 35, but taking out level term life insurance or decreasing term life insurance too early could mean you are left without the cover you need in your 40s and 50s.
The two most common life events that prompt young adults to buy life insurance are applying for a mortgage and having children. Regardless of your age, if you foresee one or both of these events happening in the near future, life insurance could be something to consider.
Is Life Insurance Necessary for Young Adults?
Life insurance isn’t necessary for all young adults, but it can provide peace of mind to those who have families that depend on them. For example, if you have a partner who would struggle to pay the bills without your income, or young children who rely on you for all their basic needs, life insurance could provide them with financial security if you were to pass away.
To help you decide if life insurance is necessary for you, consider the following questions:
· Do you have children or relatives you take care of?
· Are you married, in a civil partnership or a long-term relationship?
· Does your partner rely on your income?
· Do you have a mortgage on your home or another property?
· Do you support your parents or extended family financially?
· Does your partner have life insurance and would you like a joint policy?
If your answer to any of these questions was yes, life insurance could be something to consider.
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How Much Does Young Adult Life Insurance Cost?
The cost of life insurance for young people is usually lower than for older adults, especially if you’re taking out a policy before you’re 35. However, age isn’t the only factor that helps life insurance companies decide your premiums, meaning that life insurance for over 30s isn’t always that much more expensive than policies for those in their 20s.
Your lifestyle choices and overall health can have a big impact on how much you pay for life insurance. Behaviours such as smoking, vaping, and substance abuse can all increase your life insurance costs, as can certain pre-existing medical conditions. If finding affordable life insurance is particularly important to you, you may want to take steps to improve your health and change your habits.
The type of life insurance cover you take out also has an impact on cost. For example, a whole life insurance policy is likely to cost more than one for a specific term. Similarly, add-ons such as critical illness cover or family income benefit could increase your monthly premiums. It’s really important you only take out the cover you need to avoid increasing your costs needlessly.
At Money Expert, we can provide you with a range of life insurance quotes to help you make the right decision for you and your family.
Are You Too Young for Life Insurance?
UK residents can take out life insurance once they turn 18, but it can be worth exploring your options before then. There’s nothing stopping you from enquiring about different life insurance policies in the lead up to your birthday to help you make an informed decision.
However, many young people don’t explore life insurance options until their 30s because they feel too young. While it’s true that the risk of dying in your 20s is significantly lower than in your 60s, it’s important to think about what would happen to your family if you were to pass away unexpectedly.
Ultimately, your decision to take out life insurance shouldn’t rest on your age, but the people around you who may need financial protection after you die.
What is the Best Life Insurance for Young Adults?
The best life insurance for young people is the type that meets their needs. As a result, there’s no one policy that’s right for every young person. However, if you’re thinking about buying young adult life insurance and aren’t sure where to begin, here are some types of life insurance that could work for you:
· Level Term: Level term life insurance will provide you with a set amount of cover over a specific time frame. This means that the payout your family receives will stay the same, making it a reliable policy to choose.
· Whole of Life: Whole of life cover will provide you with protection throughout your entire life. This means that no matter when you die, your family will receive a payout. Whole of life policies can be more expensive, but they may be more affordable if you take them out when you’re young.
· Joint: Joint life insurance is ideal for young people that are married or have a partner. Joint cover typically costs less than two separate policies, but it’s worth keeping in mind that if one of you dies, the surviving partner will no longer be covered by that same policy.
· Decreasing Term: Popular amongst people with mortgages, decreasing term life insurance reduces over time. This means that as you pay off your debt, your life insurance will proportionally decrease to give you only the cover you really need.
· Increasing Term: If you expect your costs to increase over time, increasing term life insurance may be right for you. For example, young adults that plan to grow their family or move to a larger home may choose increasing term insurance to make sure their loved ones are protected as their lifestyle changes.
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How can life insurance help you and your family?
Life insurance can offer an important helping hand to any financial dependants you have should you pass away. The payout will help cover general expenses like bills or food shopping that you might have been responsible for. But life insurance policies are often taken out to cover debts or expenses like mortgages or funeral costs.
Mortgage Protection
If your family would struggle to keep up with mortgage payments without your income, most policies will ensure they don’t lose their home if you pass away. Decreasing term policies are designed to cover specific debts like this.
Loss of Income
If you have any dependents that rely on you for day-to-day living expenses, then a level term policy that pays out a fixed lump sum in the event of your death can be an important source of peace of mind
Funeral Expenses
If you want to ensure that your family can meet funeral or burial expenses following your death, you can seek out dedicated funeral cover policies. The average funeral in the UK cost ££4141**.
**SunLife's annual Cost of Dying Report 2024.
Your Children's Education
A life insurance policy can help you make sure there is money available for your children’s future, even if you are not there to see it.
Check out our life insurance guides
We endeavour to keep our users fully informed when it comes to taking out a life insurance policy. Please read through our handy guides to find the information you need.
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FAQs
Which life insurance is best for 30 year olds?
The best type of life insurance is the one that meets your needs, so make sure you’re only taking out cover that matches your current circumstances. Many 30 year olds qualify for young adult life insurance, which may keep costs lower over the years.
Should I get life insurance in my 30s?
If you have someone who depends on your income to cover their living costs, it can be worth taking out life insurance in your 30s. This could be a partner that you have a joint mortgage with, children who need you to provide them with a place to live, or other family members that you are financially responsible for. Everyone’s circumstances are different, but age shouldn’t be the deciding factor when it comes to taking out life insurance.
How much life insurance do I need in my 30s?
The amount of life insurance you need in your 30s depends on your circumstances and living costs. In general, many people in their 30s with families take out cover that’s roughly 10x their annual income, but this may or may not be right for you. Suppose you have an expensive mortgage or a high salary and are the sole earner in your household. In that case, you may need more cover to allow your family to maintain their lifestyle should you die unexpectedly. On the other hand, if you have a partner who works and you’ve paid off your mortgage, you may not need such comprehensive cover.
How does your payout change over time?
The answer to this question changes depending on the type of insurance policy that you take out. If you take out a level term insurance policy, the amount that you receive as a payout will stay the same no matter when you die - provided you die within the term of the policy.
You also have the option of taking out a decreasing term life insurance policy, these policies give a lower payout the longer that the policy goes on for. This means that if you were to die in the first year of your policy, your family could receive something like £150,000. If you were to die in the last year of your policy, your family would receive a much lower sum. The main reason that people take out decreasing term policies is to cover their outstanding debts in the event of their death. Things such as mortgages will be paid off as time passes and you move through the term therefore your family will need less money to finish its payment the later your insurance pays out.
Does the cost life insurance increase after 30?
Life insurance premiums can be higher after you turn 30, but usually not by a significant amount. While you will be seen as a higher risk to insurers than someone in their 20s, most of the time your payments shouldn’t be more than a few pounds different each month. This doesn’t take into consideration any changes in your health, however, which may impact your premiums more.
Last reviewed: 1 May 2024
Next review: 1 June 2024