Life insurance for young adults

At what age should you take out life insurance?

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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

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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.

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.

At what age should I take out life insurance?

There’s no set age to take out life cover. But most mortgage lenders will require you to have life insurance if you want to buy a property. So for many people, the age at which they buy their first home is the age they take out life insurance for the first time.

Life insurance for young adults is also a good idea if you become a parent, or have a partner or other family member who relies on your income – whatever age you are.

How does age affect the cost of life insurance?

Life insurance is usually cheaper when you are younger. As your premiums will stay the same throughout the term of the policy, this means you’ll get the same cover for much less if you take out a life insurance policy under the age of 30 – rather than waiting until you’re 35 or 40.

Our research shows you can expect to pay around £5 a month for £150,000 life insurance if you get it at 20. By the time you hit the 35-45 bracket, this jumps to £18.28. So even if you’re paying for longer, you’ll pay less overall – and have cover for longer.

Example: An 18-year-old takes out £150,000 life insurance at £5.00 a month, due to last until he is 68 years old. Total cost for 50 years of cover = £3,000.

A 30-year-old takes out £150,000 life insurance at £11.79 a month, due to last until he is 68 years old. Total cost for 38 years of cover = £5,376.

Cheapest life insurance quotes for adults under 30; cover amount - £150,000

Age

Average monthly premium

18

£5.00

19

£5.27

20

£5.17

21

£6.56

22

£6.99

23

£7.34

24

£7.67

25

£8.32

26

£9.01

27

£9.69

28

£10.31

29

£10.83

30

£11.79

Source: MSM, July 2019 – June 2020

What else affects my life insurance premiums?

The cost of life insurance doesn’t just depend on your age. Your health and your lifestyle choices – particularly smoking or vaping – have an impact too, as 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.

Are there age limits for taking out life insurance?

There’s no lower age limit for life insurance; you can get life insurance for a child if you want. But you’ll need to be 18 to take out an adult life insurance policy in your own name. Life insurance gets more expensive as you get older, but you can still take it out at 60 or more if you need it.

Some providers even offer life insurance for the over 80s. However, most people only take out life insurance to cover them while they’re earning.

I’m young and healthy – why do I need life insurance?

Life insurance is designed to protect your loved ones – and pay off your debts – if you pass away unexpectedly. Accidents do happen, and if you have a mortgage or dependents, life insurance is a good idea whatever your age.

A life insurance policy for young adults gives you the peace of mind of knowing that your loved ones will be ok financially should something happen, and can cost as little as a few pounds a month.

How can I find the best life insurance for young adults?

Decreasing term, level term, whole-of-life… there are lots of different types of life insurance to choose between. Which one you need depends on your individual circumstances, so check out our life insurance jargon buster to find the best fit. Then use our comparison service to take out cheap life insurance for young adults.

Other things to think about when choosing the best life insurance for under 30s include:

  • A joint life insurance policy that covers you and your spouse/partner can prove a cheaper option than buying two separate policies. Remember though that if one of you passes on, the other will receive a payout, but will be left without cover. And if you both die in an accident, for example, your dependents will receive just one payout
  • You can add critical illness cover that pays out if you become seriously ill to a life insurance policy, but this will bump up the price
  • You must tell your insurer if you’re a smoker. Otherwise, your family may not receive a payout if you die of a related disease. The same goes for pre-existing medical conditions
  • You’re considered a smoker for insurance purposes if you’ve had any tobacco products in the last 12 months. So you’ll have to give up for at least a year to buy life insurance as a non-smoker

What if I didn’t take out life insurance while I’m young?

You should pay less per month for life insurance if you take it out when you’re younger. But not buying a life insurance policy as a young adult doesn’t mean it’s too late to protect your family. You can still find cheap life insurance after the age of 30 if you shop around for the best deal.

Compare life insurance for young adults

A good way to find affordable life insurance for young adults and protect your loved ones is to compare deals with MoneySuperMarket.

All you need to do is provide us with a few details about yourself and your circumstances, and we will find a range of offers to suit your needs

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