Why you should take out life insurance as a young adult
From the outside looking in, so many people assume it’s pointless to get a life insurance policy when you’re young. But this couldn’t be further from the truth.
There are countless benefits to getting a life insurance policy when you’re younger. Let’s go through some of the top reasons you should be considering cover as a young adult.
What is life insurance?
Life insurance is a product that can pay out a tax-free lump sum of money, if the policyholder (the person who took out the policy) were to pass away during their term length (the time they are covered by the policy for).
The money from your life insurance policy can be used by your loved ones, if you have passed away. Or the money can be used by yourself, if you have a policy that could pay-out whilst you’re still alive.
What is the best life insurance for young adults?
There are so many different types of life insurance available. Here are some of the top policies that young adults could benefit from:
- Income protection is a type of life insurance policy that can act as your regular income, if you were unable to work as normal, due to sickness or injury. This policy can cover up to 60% of your income and will pay-out each month*. This is one of the top insurance policies for young adults and is great for those who don’t have a lot of money in savings.
- Critical illness insurance can cover you for a defined list of critical illnesses. This type of life insurance allows you to use the pay-out whilst you’re still alive. So if you were diagnosed with a critical illness, your cover could pay-out a lump sum which you can make use of whilst you’re still alive or pass on to your loved ones.
- Life insurance is one of the most basic forms of life insurance you can get. This type of cover is probably what springs to mind when you think of a classic life insurance policy. It can pay out a lump sum, if you were to pass away and if it’s index-linked, it means the amount of money you’re covered for and your monthly premiums would usually increase roughly inline with cost of living.
What about life insurance for young parents?
Being a young parent can be so rewarding. But it doesn’t come without its pressures, whether it’s pressure to be a good parent, financial pressure, or even pressure to make sure they have a happy childhood.
A life insurance policy doesn’t just give you a bit of a financial safety net but it also means that some of the weight and worry can be taken off your shoulders. One of the biggest worries every parent shares is if something were to happen to them, what would happen to their children and family. A life insurance policy can help to alleviate some of these worries.
What is the minimum age for life insurance?
You usually need to be at least 18 years old to get life insurance.
All you need to remember is the younger you get your cover, the cheaper your life insurance premiums are likely to be.
Why doesn’t everyone have life insurance?
Looking at recent research from Direct Line Group, only 35% of people have life insurance, despite six in ten households agreeing it would benefit their family. Over a third of those that don’t have cover, believe that policies are too expensive.
When you come to a life insurance broker (AKA us) for help with taking out your life insurance policy, we assess aspects of your life, current circumstances, affordability, and health to ensure that you get the right policy for you and your loved ones.
Why is life insurance cheaper when you’re younger?
When taking out life insurance, quite a few of the questions you’ll be asked will be based on your health. Typically, the younger you are, the better your health is likely to be which is often why your monthly premiums will be cheaper.
In a nutshell, getting life insurance when you’re young would mean you’ll most likely end up paying less in monthly premiums and potentially less over the course of your policy.
What age should you get life insurance?
There is a common misconception that life insurance is not for young people but this couldn’t be further from the truth. Policies such as income protection and critical illness cover can pay-out whilst you’re still alive, meaning you can use the money yourself. Some of the top reasons you should consider life insurance as a young adult are:
- You’re self employed
- You rent a property
- You don’t have much money in savings
- You’re a big worrier
- You have kids or you’re thinking about starting a family
- You have a mortgage
In general, how much does life insurance cost?
Apart from your age, our life insurance experts will assess a range of factors to calculate how much your life insurance monthly premiums could cost, some of these factors are:
- Whether you smoke or not
- The medical history of your family
- Your hobbies
- The level of cover you want
- Your job
- Your health
- The time length of your policy
If you’re still not sure about life insurance because you’re worried about the cost, then you’re in luck. At Caspian Insurance, we’ve created a life insurance calculator that can tell you an estimate of how much your policy could cost you in just 30 seconds.
Worried you’ve left it too late?
If you’re still without a life insurance policy, don’t feel like you’ve been left behind.
You can get life insurance for 30 year olds, life insurance for 40 year olds, 50, 60, 70 year olds. Plus, some life insurance providers even offer specialist cover for those over the age of 50.
One difference with getting life insurance later down the line is that you’ll likely be paying more for your policy, compared to if you took out your cover when you were in your 20’s or 30’s.
Our no fuss service
At Caspian Insurance, we make life insurance simple.
We search through the UK’s leading life insurance companies to find the best cover for you and your loved ones. To start your free life insurance quote, click the button below today!
*Your policy will pay you a monthly amount until you return to work, your policy ends or you have reached your pre-chosen maximum claim period.
