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Life insurance for young adults

At what age should you take out life insurance?

Rachel Ditchburn
Written by  Rachel Ditchburn
8 min read
Updated: 20 Feb 2024

You might think you’re too young to need life cover, but taking out life insurance under 30 could save you money – and protect your loved ones should the worst happen

When should you start thinking about life insurance?

How old do you have to be to need life insurance? If you’re under 30, it might seem like something you’ll only need much later in life. However, life insurance isn't just for those in their golden years or for parents with young children. It's a common misconception that life insurance is something to put off until later, but the reality is that the right time to consider it may be much sooner than you think.

But if you have a mortgage or people who depend on you to pay the bills, life insurance will protect them from financial hardship and even more heartache should you pass away. And the younger you are, the less you’ll pay for it. This is because insurers view younger policyholders as less of a risk, which translates into lower premiums for the same level of coverage.

three young people travelling in a car

What triggers the need for life insurance?

There isn't a perfect age to take out life insurance, but there are certain life events that might indicate that it's a good time to buy. For example, some mortgage lenders may ask you to have some form of mortgage life insurance in place if you want to buy your first property to mitigate the risk should you pass away early in the mortgage term. This is a clear sign that life insurance isn't just an option but a necessity for some financial commitments.

Marriage or having children are also pivotal moments when you might start to consider the financial future of your loved ones. The thought of leaving a spouse or children without support is daunting, and life insurance can offer the reassurance that they'll be taken care of financially.

Can you be too young for life insurance?

When it comes to life insurance, age is just a number, but your personal circumstances and those of your dependents are the true indicators of whether you need a policy. Here are some questions to ponder:

  • Do you have any debts that could be passed on to your family?

  • Are there people who rely on your income?

  • Do you have a mortgage that needs to be paid off?

If you answered yes to any of these, then it's worth considering life insurance, regardless of your age.

What influences life insurance premiums?

The cost of life insurance, however, doesn’t just depend on your age. Your health and your lifestyle choices – particularly smoking or vaping – have an impact too. So does the size of the payout you want your loved ones to receive. You’ll also pay more for certain types of life insurance, such as a whole-of-life policy that covers you for your entire lifetime rather than a set term.

For instance, life insurance premiums can be as low as £4.02i for a 30 year-old non-smoker with no pre-existing medical conditions over a 20-year period (April 2024). This affordability can make life insurance an attractive option for young adults.

Are there age limits for life insurance?

Upper age limits for life insurance will depend on the different providers and policies they offer. Most providers will have an age limit of around 60 to 70 years of age. However, some specialist providers offer senior life insurance, so it's not impossible to find a policy although policies operate differently and you should check policy details carefully to check they offer what you expect.

Life insurance gets more expensive as you get older, so taking out a policy in later life may not always be worth it but you can still take out over 50s life insurance if it meets your needs.

Why should young, healthy individuals consider life insurance?

Life insurance is often framed as a means of protection for those we leave behind. It's about ensuring that your loved ones aren't left with debts or financial burdens in the event of your unexpected death. This is why it's recommended to consider life insurance regardless of age if you have dependents or significant financial obligations like a mortgage.

Moreover, life insurance can be surprisingly affordable for young adults, providing peace of mind without breaking the bank.

Finding the best life insurance for young adults

When searching for the best life insurance, it's important to consider all your options. A joint life insurance policy that covers you and your spouse/partner can prove a cheaper option than buying two separate policies. However, it's crucial to understand the terms, such as the policy only paying out once, leaving the surviving partner without cover.

You can add critical illness cover to a life insurance policy, which pays out if you become seriously ill, but this will increase the premium.

What type of life Insurance suits young adults best?

There are lots of different types of life insurance for young people. These include decreasing term, level term, and whole-of-life. Which one you need depends on your individual circumstances. Reading our life insurance guides may help you find the best fit. Our comparison service can then help you find affordable life insurance for young adults.

Concerns about delaying life insurance

If you're worried that you've missed the boat by not taking out life insurance at a young age, don't be. While it's true that premiums are lower for younger individuals, it's not too late to find affordable coverage after 30. The key is to shop around and compare policies.

How to get started with life insurance for young people

Getting life insurance as a young adult is straightforward with tools like MoneySuperMarket. You can compare life insurance deals for young adults and find a policy that matches your needs and budget.

When using MoneySuperMarket, you'll need to provide some personal details and information about your circumstances. This helps to ensure that the offers you receive are tailored to your specific situation, making it easier to find the right life insurance policy for you.

Life insurance is a valuable tool for financial planning, offering security for your loved ones and peace of mind for you. Whether you're just starting out in life or you're well on your journey, it's never too early—or too late—to consider how life insurance can fit into your financial strategy.

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  1. Based on £100,000 worth of level term cover for a 30 year-old non-smoker with no pre-existing medical conditions over a 20-year period (April 2024).