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Affordable life insurance for young adults (18-29)

If you’re over the age of 18 and you have a partner and/or children, it’s important to consider the benefits of life insurance for young adults, including:

  • Financial protection for your family if you were to pass away unexpectedly
  • Low-cost monthly premiums for the entire policy term (from just 20p-a-day † )
  • Peace of mind for many years to come

Even if you’ve not had children or secured a mortgage yet, it could still be worth taking out a policy to prepare for these future milestones.

At Reassured, we compare quotes from some of the best life insurance providers for young adults to help you find our most competitive deals.

Simply fill in our simple online form to get started.

Life Insurance for Young Adults Quotes »

What is life insurance for young adults?

Life insurance is a type of policy that pays out a cash lump sum if you pass away during a set period (the term).

How much that’s paid out and the length of time you’re covered for will depend on your needs and circumstances.

The lump sum can provide a crucial financial safety net for loved ones when you’re no longer around.

Life insurance for young professionals and adults can help to cover:

  • Mortgage or rent payments so your loved ones can remain in their home after you’re gone
    The average mortgage debt is £132,378[1] and the average rent per month is £1,301[2]. Could your partner afford to repay the mortgage or cover rent without your income?
  • Cover day to day living costs so that your loved ones can continue their current lifestyle
    UK families spend on average £2,700 a month on expenses such as bills, transport and food shops[3]. And, for a lone parent, the average cost of raising a child to 18 is around £220,000[4]
  • Additional childcare that may be required after your passing
    Full-time childcare can cost up to £120.93 per week (for those entitled to 30 hours free)[5]. Would your partner need to increase their hours at work or take time off to look after the children if you were no longer around?
  • Pay off any outstanding debts in your name
    Young people in the UK are more likely to have loans, credits cards and overdrafts[6]. Those aged 18 to 34 have the highest level of personal debt, averaging around £10,400 per person[7]
  • The cost of your funeral
    The average cost of a basic funeral now stands at £4,141 and the total cost of dying is £9,658[8]. Is this an expense that your close relatives or dependents could afford if you were to pass away unexpectedly?
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How much life insurance do you need?

Enter your financial commitments below to understand the level of life insurance cover you need as a young adult.

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£137,934 is the estimated mortgage debt per household in the UK.

The purchase of a home is likely to be the largest financial commitment any of us will make in our lifetime. Your life insurance should cover your remaining mortgage balance to allow your loved ones to stay in the family home should anything happen to you.

Source: Moneynerd.co.uk
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The average monthly household budget in the UK is £2,548 (that’s £30,576 per year), which is spent on transport, food & drink, utilities (gas, electricity, water etc), clothing, council tax and leisure activities.

With energy prices hitting a record high and the cost of living rising sharply in the UK, you may wish to factor in utility bills and family living expenses into your cover.

Source: Nimblefins.co.uk
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The average personal debt of UK adults has risen to £34,566 (not including mortgage debt), with credit cards, personal loans and overdrafts being the most common forms of debt.

Factoring in any debts into your life insurance cover means that, if they need to be paid back from your estate after your passing, your loved ones won’t miss out financially.

Source: Money.co.uk
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According to SunLife, the average cost of a funeral in the UK is £3,953 (with the overall cost of dying at £9,200).

Funeral costs have increased by 116% since 2004 and are a significant cost which should be factored into the amount of life insurance you secure.

Source: SunLife.co.uk
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When factoring in cover for your children, you may wish to calculate the amount based on how long it is until they reach financial independence.

This could include childcare (£7,000 per year for part-time care), school expenses (£1,519 per school year for uniforms, lunches, stationary etc), as well as an additional sum for further education (this could be a contribution of up to £5,000 per year).

Sources: Daynurseries.co.uk, Primarytimes.co.uk & Savethestudent.org
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If you are one of the 65% of the UK who are lucky enough to have savings, this could be used as protection if you were to pass away.

Any pay outs from existing life insurance policies and investments can also be used as financial protection for your loved ones if you were no longer around.

Factor this into your required cover amount.
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If you’re lucky enough to have your own savings or are part of the 30% of UK residents who already have a life insurance policy in place, this can provide financial protection for loved ones.

By entering your current cover, savings or death in service amount you can reduce the sum assured you require.

Source: Scottishbusinessnews.net
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What are the benefits of life insurance for young adults?

One of the benefits of arranging life insurance in early adulthood is that your premiums will be significantly cheaper than if you were to wait until later in life.

Many life insurance policies last for over 20 years and any changes during the policy term, such as your health, won’t increase your premiums.

Therefore, taking out a policy whilst you’re young allows you to take advantage of low-cost premiums for the entire term, even as your lifestyle and responsibilities evolve.

In life insurance terms, there are two types of young adult:

  1. Those with dependants
  2. Those without dependants

A dependant refers to someone who depends on you financially, such as a child or partner.

If you’re a young adult with dependants, then life insurance can be extremely beneficial in protecting them financially.

While it can be harder to see the benefits of life insurance if you don’t have anyone who depends on you, it can still be wise to secure cover while you’re young and in good health.

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Why compare life insurance for young people through Reassured?

  • Save money by comparing our best life insurance policies for young adults & families
  • Get free, no-obligation quotes from multiple leading insurers to find an excellent deal
  • Buy life insurance online or over the phone depending on your needs and circumstances
  • We’re the UK’s largest life insurance broker * with over 15 years industry expertise
  • Fee-free and award-winning service rated ‘Excellent’ on Trustpilot from 80,000+ reviews
  • Terminal illness cover comes as standard with all of our term life insurance policies
  • Avoid or minimise 40% inheritance tax by using our free trust writing service (available with most policies)

Best life insurance for young adults

The best life insurance for a young adult depends on your individual circumstances. For example, what you need your policy to cover and your budget.

Whether you want to help protect a mortgage or help cover bills or funeral costs, there are multiple life insurance policies available to suit varying needs.

The most popular types for young people and young families include:

  • Level term life insurance
  • Decreasing term life insurance
  • Family income benefit

Read on as we explore the different types of life insurance available…

Life insurance policies for young adults

As a young adult there are a range of life insurance policies you can choose from, including:

Level term icon

Level term life insurance

  • Cover lasts for a specified period of time (up to 40 years)
  • Pay out will be made if you pass away during the term
  • Will pay out a fixed cash lump sum
  • Sum assured up to £1,000,000
  • Ideal for young adults who want to help protect future assets (such as family living costs or an interest-only mortgage) due to the large sum assured potential
  • Premiums can be as little as 20p-a-day through Reassured †
Decreasing term icon

Decreasing term life insurance

  • Cover lasts for a specified period of time (up to 40 years)
  • Pay out will be made if you pass away during the term
  • Lump sum value reduces throughout the policy lifetime
  • Sum assured up to £1,000,000
  • Ideal for young adults who want to help protect a repayment mortgage as the sum assured can reduce in line with your mortgage balance
  • Premiums start from 20p-a-day through Reassured ¥
Family income benefit icon

Family income benefit

  • Cover lasts for a specified period of time (up to 40 years)
  • Pay out will be made if you pass away during the term
  • Pays out a fixed sum assured in monthly (tax-free) payments
  • Monthly payments will be made until your policy expires
  • Sum assured up to £5,000 per month
  • Ideal for young adults with a family to help with long-term family budgeting after your passing

All term-based life insurance policies arranged through Reassured come with terminal illness cover as standard.

This means if you’re diagnosed with a terminal illness during the term, with less than 12 months life expectancy, you’ll be able to claim early on your policy.

Compare Free Life Insurance Quotes for Under 30s »

What are the best life insurance companies for young adults?

Whilst certain life insurance companies specialise in providing cover for the older generation, it's rare to see a company that specialises in young adults.

As a result, the best life insurance company for you will be one that provides the type of cover you require at the lowest price.

Compare life insurance quotes from some of the UK’s leading life insurance providers through us to see if we can help you save money on your premiums.

Our award-winning quote service is fee-free.

How much is life insurance under 30?

At Reassured, life insurance for young adults can be arranged from just £5 a month.

£5 a month is based on a healthy 20-year-old non-smoker taking out £237,000 of term life insurance over 20 years.

Although the exact cost of your life insurance will depend on the level of risk you pose to the insurer (the risk of a claim being made on your policy).

Being a young adult means you can benefit from cheaper life insurance rates due to your age.

Other factors which can affect your monthly life insurance premiums include:

  • Health
  • Smoking status
  • Occupation
  • Lifestyle (such as alcohol intake and hobbies)
  • Weight (BMI)
  • Type of policy cover
  • Length of term
  • Amount of cover (sum assured)

The tables below show example term life insurance quotes for applicants aged 18 to 29 with Reassured.

Table 1. Example monthly premiums for level and decreasing term life insurance. Quotes are based on a non-smoker, in good health, taking out £200,000 of cover over 25 years:

Age

Level term price per month (20 year term)

Decreasing term price per month (20 year term)

18

£4.67

£4.64

19

£4.68

£4.66

20

£4.74

£4.73

21

£4.99

£4.98

22

£5.22

£5.12

23

£5.51

£5.18

24

£5.81

£5.22

25

£6.11

£5.31

26

£6.48

£5.42

27

£6.78

£5.56

28

£7.41

£5.71

29

£7.65

£5.89

Table 2. Compares example monthly premiums for level term life insurance from leading insurers. Quotes are based on a non-smoker, in good health, taking out £150,000 of cover over 30 years:

Age

Aviva

Legal & General

Scottish Widows

18

£4.44

£6.07

£5.62

19

£4.45

£6.07

£5.62

20

£4.50

£6.07

£5.69

21

£4.64

£6.03

£5.99

22

£4.78

£5.97

£6.23

23

£4.98

£5.93

£6.27

24

£5.16

£5.90

£6.36

25

£5.38

£5.93

£6.50

26

£5.68

£6.39

£6.69

27

£6.08

£6.88

£6.93

28

£6.71

£7.38

£7.22

29

£6.92

£7.92

£7.56

As you can see, the cost of life insurance for young adults varies between different insurers.

For this reason, comparing quotes is important to secure your lowest premium.

At Reassured, we provide a fee-free comparison service to help you quickly and easily find a suitable price for the policy of your choice.

Make the most of our award-winning service today.

Reassured top tips

How to secure cheap life insurance for young adults [Top tips]

Nowadays, it's common for many young adults to have limited disposable income. As a result, taking on another monthly outgoing, such as life insurance, can seem unnecessary.

However, there are a number of steps you can take to ensure you don't pay more than is necessary:

  • Take out cover as young as possible - This will help you to avoid inflated premiums due to your age. The younger and healthier you are, the cheaper your premiums
  • Live a healthy lifestyle - Quitting smoking, reducing your alcohol intake (if over 14 units a week) and regular exercise are all steps you can take to help lower your premium
  • Arrange the right type of cover to meet your needs - Decreasing term life insurance is usually the most affordable and can help protect large debts, such as a mortgage
  • Only take out the level of cover and term length that you need - Ensuring that your policy aligns with your financial commitments will ensure that you’re not paying for unnecessary cover
  • Always compare multiple quotes - Comparing your available options will allow you to find the cover that best meets your needs for the most affordable price
  • Factor in any cover you may receive from your employer - Some employers offer death in service which will pay out a lump sum (usually a multiple of your salary). While this may not cover all expenses, it can help minimise the level of personal cover you need

Other outgoings you may not have considered

Debt in the UK is on the increase and is particularly prevalent amongst young adults.

Do you have any of the following?

  • Credit cards
  • Store cards
  • An overdraft
  • Rental agreement
  • Car finance
  • Any other form of payment plan

The remaining balance of each of these could be repayable upon your passing.

Whilst debts don’t become the individual responsibility of others, the outstanding balances will be recovered from your estate.

If you were to die with no assets, the balance of your debt is written off but there’ll be no legacy to leave behind for loved ones.

In some instances, payment plans or rental agreements are put in place with the use of a guarantor, (usually a parent). If this is the case, your death could mean the responsibility of this outgoing becomes theirs.

The pay out from your life insurance could be used to help cover the remaining balance of any debt in your name.

To ensure your loved ones, including parents, are protected, contact Reassured.

Can you make changes to your policy during the term?

Yes, it can be possible to make changes to your life insurance policy if your circumstances change during the term.

The types of changes you can make will be defined in your policy terms.

For example, most policies give you the ability to increase your cover amount at certain life events, such as getting married, having a child or securing a new mortgage, without requiring new medical information.

This is called a special events or guaranteed insurability option.

As a young adult, it can be hard to plan for every aspect of life you’ll need to cover in the future.

Therefore, it could be beneficial to take out a policy that includes the special events option, locking-in low monthly premiums while also meeting your future needs when the time comes.

To discuss the special events option, contact our award-winning team who’ll be happy to help.

Joint life insurance vs 2 single policies for young adults

For young couples, taking out a joint life insurance policy can help you to save even more money.

This is because you’ll only need to pay one premium for a policy that covers both lives simultaneously.

However, there’s only one potential pay out during the term (which is usually after the first death).

The table below shows a price comparison between taking out one joint life insurance policy compared to two single policies.

Quotes are based on two non-smokers, in good health, for a level term life insurance policy with £100,000 of cover over a 30-year term:

Age

Joint life insurance cover price per month

Two single policies price per month

20

£5.72

£7.00

25

£8.08

£8.72

29

£9.85

£11.02

Joint life insurance is an affordable option for young couples on a budget, however, it doesn’t provide the same level of cover as two single policies.

One of our life insurance experts would be happy to help you conduct a full joint vs single life insurance comparison.

What about whole of life insurance for young adults?

Whole of life insurance works differently to term life insurance, as it provides cover for the rest of your life rather than for a set term.

If you keep up with your monthly payments, the policy guarantees to pay out when you pass away, whether that happens in 30 or 70 years’ time.

It’s often taken out to help cover:

  • Funeral costs
  • Family living costs
  • An inheritance

Whole of life tends to be an expensive option compared to term-based cover, particularly for a young adult.

This is because, depending on how long you live, you may pay more into the policy than what it pays out upon your death.

Compare whole of life insurance quotes through Reassured’s advised team from £8 a month ± .

Other protection options for young professionals

Critical illness cover

You can take out critical illness cover for an additional cost with your life insurance policy. It gives you extra protection in the event you’re diagnosed with a life-changing illness during the term.

You’ll be covered for around 30 illnesses, including cancer, heart attack and stroke (although these will be specified by the insurer when you take out your policy).

Available through Reassured from 33p-a-day º .

Income protection insurance

If you want to help protect your income in the event you become unwell or injured during your working life, then you may consider an income protection policy.

It pays out in monthly payments, allowing to you to cover your financial commitments until you’re well enough to return to paid work.

This form of cover could be particularly beneficial for young adults who don’t have a large amount of savings to fall back on.

Whole of market comparison available through Reassured’s advised team.

Compare life insurance quotes for young adults

Lock-in the most affordable life insurance premiums by taking out cover as a young adult.

Why not use the award-winning broker service offered by Reassured to compare quotes from some of the UK’s top insurers?

This way you can find the right policy to meet your needs at the right price to suit your budget.

Our quotes are personalised, fee-free and completely without obligation.

We'll also be on hand to help you through the entire application, answer any questions you may have and decode any confusing industry jargon.

Why not seize the day, lock-in the lowest premium our comparison service can offer and secure your long-term future?

Compare Life Insurance Quotes for Young Adults »

Life insurance for young adults FAQs:

When should young adults get life insurance?

If you’re over the age of 18 and you have dependents, such as a partner or children who rely on you financially, then it could be a good time to get life insurance.

As mentioned, waiting to take out a policy could mean paying higher premiums, or that you’re unable to secure the amount of cover you need, in the future.

Many young people take out life insurance at certain life events, like:

These are crucial moments that could prompt the need for financial protection, whether you’re in your 20s, 30s or 40s.

At what age should you get life insurance?

There’s no definitive age which is best to arrange life insurance, so this decision will be unique to you.

It’s possible to take out cover up to the age of 85 but you should be aware that the longer you put off securing cover, the more you’re likely to pay.

While you’re in young adulthood you may not have a steady partner or children but it’s important to consider your funeral costs if the worst happened.

The average cost of dying has risen significantly over the past 18 years and now resides at £9,658.

If the value of your estate (any money, possessions and property you own) is not sufficient, your loved ones will need to pay for this cost out of their own pocket.

Therefore, even at a young age it can be beneficial to have some form of life insurance in place.

The younger you arrange life insurance, the cheaper it is. So, the sooner you arrange cover the better.

Is life insurance a good investment for young adults?

It's ideal to take out life insurance in young adulthood as you can lock-in low premiums for the foreseeable future.

As discussed, invoking a special events option allows you to adjust your cover at a later stage to suit any change in circumstances.

Putting off arranging cover until you're older will mean you're subject to increased premiums that come with age.

Therefore, arranging cover as a young adult can be a sensible decision.

How much life insurance do I need?

When determining how much life insurance you need it’s often recommended to calculate the value of what you’d like to protect.

When arranging life cover as a young adult you should consider the different aspects of your life you currently need to help protect and those which may come into play in the future.

For example, if you don’t have a mortgage or family, you may only need to consider any debts you currently have. However, if you wish to buy a property and start a family in the near future you may want to factor in these future costs.

The sum assured you choose should be capable of covering all aspects.

For example: Credit card debt (or any other debts you have) + Car finance + Mortgage balance (or rental agreement) + Future family living costs = Required sum assured

Taking out enough cover to protect all potential future avenues allows you to lock-in lower premiums.

Should young adults write their life insurance in trust? (Avoid/minimise 40% inheritance tax)

When you pass away your life insurance proceeds form part of your estate (your estate is made up of any money, possessions and property you own).

If your estate exceeds £325,000, your loved ones will have to pay 40% inheritance tax (IHT) on the excess.

Whilst the £325,000 threshold may not seem relevant for many young adults, it can be easy to exceed this amount.

For example, if you have a policy of £200,000 coupled with a 1-bedroom flat worth £150,000 your estate already exceeds this by £25,000 before any savings are factored in.

Writing your life insurance in trust can detach the value of your policy from your estate, meaning that it’ll not be taken into account with regards to the £325,000 threshold.

This provides the following benefits:

  • Reduce / avoid inheritance tax (charged at 40% on anything over £325,000)
  • Bypass the probate process (for a faster pay out)
  • Specify how you wish the proceeds to be distributed (upon your passing the funds will be paid to a nominated trustee who will make sure they are distributed as per your wishes)

At Reassured we're able to offer a dedicated free trust service on the majority of the policies we arrange, at no cost.

Sources:

[1] https://www.finder.com/uk/mortgages/mortgage-statistics

[2] https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/june2024

[3] https://www.nimblefins.co.uk/average-uk-household-budget

[4] https://cpag.org.uk/policy-and-research/findings-our-projects/cost-child-reports

[5] https://www.daynurseries.co.uk/advice/childcare-costs-how-much-do-you-pay-in-the-uk

[6] https://researchbriefings.files.parliament.uk/documents/CBP-7584/CBP-7584.pdf

[7] https://moneyadvisor.co.uk/average-debt-uk/

[8] https://www.sunlife.co.uk/funeral-costs/

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