Car insurance may have gone up but your life insurance price is locked in

The ebb and flow of the financial world can be unpredictable and confusing. Market conditions, economic fluctuations - the list goes on. Long story short, it can all substantially impact the insurance sector.

Recently, we've witnessed a surge in car insurance prices after the latest figures showed premiums were up *43% on last year.

However, while car insurance might become more expensive with age or due to a change in your circumstances, have you ever considered the opposite could be true for life insurance?


The importance of getting life insurance young

When it comes to life insurance, it’s not a legal requirement, leading many to assume it’s optional. However, on the contrary, it’s quite the opposite. The younger and healthier you are, the less you pay for coverage. But here's the catch many overlook: once you lock in that price, it stays that way.

A 25-year-old who secures a policy now will enjoy the same rate at 50 (subject to the term of the policy), while someone getting insured at 45 or 50 will invariably pay more. Why? Because life insurance prices are predominantly based on your age and health (amongst other criteria) when you take out your cover.

The exceptions to the rule

There are only a few circumstances in which your life insurance could change in price, such as:

  • Cancelling your cover - You'd start from scratch by cancelling your life insurance policy. If you ever wanted to take out cover again in the future, it would be based on your current age and circumstances, and you’d struggle to get back the same price that you initially had.

  • Your policy is index-linked - If you have an index-linked policy, it means the price of your policy will rise roughly in line with the costs of goods and services in the UK. Having indexation on your cover is optional. Your provider should contact you each year, allowing you to opt out if you decide to.

Early bird advantage

Committing to a life insurance policy while you’re young isn't just about benefiting from a cheaper premium. It's about enjoying peace of mind for longer.

It's about the peace of mind that comes from knowing you've made a financially savvy move. And it's about ensuring your loved ones have a safety net, no matter where life's journey takes you. Ask yourself: Why would you pay more in the long run for less time covered?



Embrace commitment

A common misconception is that life insurance is a massive, unchangeable commitment. In reality, policies can be adapted to life’s changing scenarios. Marriage, children, a mortgage? You can add to your cover and even remove more than one policy!

Plus, sometimes we actually recommend having more than one type of life insurance policy; the more cover, the better.

When is the right time for life insurance?

Choosing the right moment to take out life insurance varies for each individual. However, certain life events or situations might nudge you toward considering such a policy.

Options like income protection insurance and critical illness cover can pay out. At the same time, you're still alive, allowing you to use the money from your cover whilst you’re still here. Key motivators for young adults to think about life insurance are:

  • Being self-employed
  • Renting a home
  • Minimal savings
  • You’re a worrier
  • Starting or thinking about a family
  • Possessing a mortgage


The time is now

We live in a world of uncertainty. While some financial elements are out of our control, like rising car insurance costs, life insurance can offer stability. Don't let fluctuations elsewhere deter you from securing a steadfast rate. Getting life insurance younger means:


  • Cost-efficiency: Lock in a cheaper rate the younger you are

  • Extended peace of mind: You're covered for longer, ensuring you and your loved ones can have peace of mind for longer In the grand scheme of things, life insurance is one of the best money moves you can make when you’re younger.

So, as the world changes and car insurance rates are at risk of soaring, remember: your life insurance policy is safe from this risk.





*Source: Sky News