Life Insurance For Young Adults

Life Insurance For Young Adults

23 Apr 2019

Life Insurance is hardly a product that is associated with young people. Those in their 20s and 30s are much more accustomed to the notion that it’s only something those entering their 50s should really concern themselves with. Is that a very wise stance to take though?
After all, people tend to take out life insurance not just because of any worries about what could befall them one day, but primarily to ensure that those they leave behind – should the worst happen – will be well looked-after. That’s something of relevance to a huge proportion of the population, beyond merely those in their middle age or twilight years.
So, if you’re a 20-something or 30-something, could Life Insurance be a product for you – and if so, what else do you need to think about?

If you have responsibilities, give some thought to Life Insurance

If you are a young person with financial responsibilities – such as children, care for elderly relatives or a mortgage – it might be well worth considering Life Insurance. It’s important now and it will be all the more  important in the years to come.
Yes, it’s true that many Life Insurance providers do focus squarely on the over-50s market. However, the relevance of Life Insurance to your needs isn’t just dictated by your age. It’s more about the stage of life you’ve reached and are likely to reach in the future, including how circumstances such as your finances might change in light of your commitments. The minimum age for Life Insurance is as young as 18, as this is when we begin to build up our lives and gain things that really matter to us.

Then, there’s the cost factor to think about...

One of the best reasons to take out a Life Insurance policy as a young adult is the saving that you can enjoy, compared to if you had started such a policy at an older age. The younger you are, the lower your risk is likely to be of dying during the policy term, from the insurer’s perspective. And the lower the risk, the lower the premiums.
If you purchase Life Insurance during your 20s, you could find yourself paying less than £10 a month for your policy, dependent on other criteria like your lifestyle and general health. In contrast, you could end up being charged well in excess of £20 or £30 a month if you wait until your 40s or 50s to take out a Life Insurance policy.

What else should you consider before buying Life Insurance?

If you have a spouse or partner who also needs life cover, purchasing a joint Life Insurance policy may represent better value for money than the two of you each buying your own policies. That being said, you should consider whether this would be the best for your own circumstances, given that if one of you passed away, a joint policy would end after a single lump sum payout, leaving the other person uninsured.
If the worst was to happen and you both pass away at the same time - for example in a traffic accident - there would only be one payout instead of two. You need to consider whether the payout would provide the right support for any dependents you leave behind.
Finally, it is important not to confuse Life Insurance with Critical Illness cover. The latter, as its name suggests, protects you if you are diagnosed with a serious illness, by providing a lump sum until you have recovered sufficiently to return to employment. Life Insurance will only pay out if you actually pass away, but this cover can be combined with something such as Critical Illness. Regardless, our advisers here at LifeSearch can clarify the differences between these two types of policy if you give us a call.
Phone 0800 316 7253 today to talk to one of our experts about your requirements in relation to all aspects of Life Insurance as a young adult?.

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