Life Insurance for Young Adults

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As a young adult under the age of 30, you may think that life insurance isn’t for you. That’s especially true if you’ve seen adverts for the service, as they often focus on older people. Even as a young adult though, life insurance is something you should be thinking about. Here’s what you need to know about life insurance, and why you should start getting quotes.

Why Do You Need Life Insurance As A Young Adult?

For people under 30, they think that life insurance isn’t applicable to them. For example, they may not have even bought a home yet, so they’re not thinking about how the mortgage would be paid in the event of their death.

It’s true that you may not need these benefits right now, but you’ll certainly need them in the future. There are life insurance policies out there that last for decades, so you could take one out now and start reaping the benefits later down the line.

Life insurance for young adults

There are life insurance policies out there that last for decades, so you could take one out now and start reaping the benefits later down the line.

Another good reason to get insured now is because the price is often cheaper for young people. As you’re younger, you’re less likely to be dealing with things such as ill health. Because of this, you’ll be able to secure a cheaper price on your insurance now. It makes more financial sense than taking out a policy once you’re older.

What Will People Under 30 Pay For Life Insurance?

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If you’re considering life insurance as a young person, you will be concerned with how much you’ll need to pay. It’s true that you won’t see the benefit of the policy for years, and younger people are often working harder to make ends meet.

The good news is that because you’re younger, you’ll typically pay less on your premiums. It’s an investment into your future too, as spending a small amount now is the best way to avoid spending a lot later.

Like all insurance policies, the exact amount you’ll spend will vary depending on several factors. These include:

  • Your age
  • Amount of cover
  • Your health
  • Whether or not you smoke
  • Type of cover
  • Term length

Because these differ from person to person, there’s no exact amount that everyone pays. If you’re interested in finding out how much insurance would cost, you can start shopping around to see what’s available to you.

Life Insurance Quotes For Young Adults

As with most insurance policies, the price of your insurance policy will vary depending on a variety of factors. For example though, let’s take a 25 year old who wants £150,000 of cover. Depending on the insurance company they go with, they could be paying as little as £7.11 per month in insurance.

How Much Life Insurance Will You Need As A Young Adult?

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The cost of your life insurance will depend on what you need to be covered. When you start shopping around, have the following details in mind:

  • Remaining mortgage debt
  • Any loans, credit cards and other debt
  • Childcare costs
  • Funeral costs
  • Any existing life insurance death in service or savings available
  • Additional lump sum gift

You can use all this information to understand how much you’ll need from your life insurance policy. Essentially, you’ll use the following equation:

Debt in your name + mortgage costs + funeral costs + inheritance + family living costs = sum assured.

Having these numbers will help you accurately price up a policy, and see what’s available to you.

Can You Buy Life Insurance As A Young Adult?

When you hear of life insurance, you’ll often think of it being bought by older people. However, you can buy life insurance as a young person. As you’ve seen above, it makes a lot of sense to do so. As such, there are some types of policies that are going to work well for you:

Term based insurance: This is the most common life insurance type for those under 30. Term based insurance is one that covers a certain time frame, or term. If you die within that time frame, then the policy will pay out. There are two different types of term based cover that you can get.

The first is level term life insurance. This helps you protect any future assets you have, such a house that you’re likely to buy in the future. The sum assured holds its value throughout the whole policy, so it’s particularly useful for covering an interest only mortgage. The amount you get as a payout remains fixed throughout the whole term.

The other option is a decreasing term life insurance policy. The sum assured with this policy decreases the longer you have it. That way, it does work out to be cheaper overall.

Whole of life insurance: This is another life insurance type that you can buy, but it doesn’t make a lot of sense to do so. These guarantee a payout, but if you live long enough you’re likely to pay in more than you’d get out. As a young person, it’s likely that this would be the case for you.

How To Save Money On Life Insurance As A Young Adult

Younger people are more aware of their limited disposable income, and so are looking for ways to save money. You can get life insurance for cheaper than you’d think, you just need to know what you’re looking for.

  • Taking out cover as soon as possible means you’ll get better prices, as they do rise due to age.
  • Only arrange cover for what you need, so you don’t pay for things that won’t be required.
  • Live a healthy lifestyle, as this will help reduce premiums further.
  • Shop around and compare quotes, so you get the best price possible.

As a young person you can benefit from cheaper prices on your life insurance policies. Start shopping around now, and see what kind of deals are out there. It’s never too soon to start making this investment.

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