Affordable life insurance for young adults

Taking out life insurance as a young adult can help you to secure the most affordable life insurance premiums.

While you may not have a mortgage and/or have started a family yet, you can provision for these future life events.

By arranging cover as a young adult, you can take advantage of your age and good health, allowing you to lock-in super-low premiums for years to come.

Using an FCA-regulated life insurance broker, like Reassured, you can compare multiple quotes to find the right policy at the best available price.

In fact, life insurance for young adults starts from as little as 20p-a-day through Reassured. Contact Reassured for your free, no-obligation quotes.

Should you get life insurance when you are young?

Arranging life insurance in early adulthood means your premiums will be significantly cheaper than if you were to wait until later in life.

Many life insurance policies can last for over 40 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 benefit from low-cost premiums, 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.

Life cover for young adults with dependants

Young adults with dependants

A life insurance pay out could help to:

  • Keep your loved ones in the family home (by covering mortgage or rent payments)
  • Cover future family living costs (so your loved ones can continue their current lifestyle)
  • Pay for additional childcare that may be required after your passing (childcare can cost up to £263.81 per week[1])
  • Alleviate your loved ones of the financial commitment of paying for your funeral
  • Provide an inheritance for your loved ones to spend as they wish
Life cover for young adults without dependants

Young adults without dependants

A pay out from a life insurance policy could help to:

  • Lock-in super low premiums and provision for the future (you may be able to increase your cover amount if your circumstances change overtime)
  • Cover the cost of your funeral so this financial burden isn’t left for your family to cover the cost of a basic funeral now stands at £4,056[2])
  • Pay off any outstanding debts in your name
  • Provide a cash gift for family and/or friends in the form of an inheritance

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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£121,687 is the estimated average outstanding mortgage per household in the UK.

Our property is generally the largest financial commitment any of us will make.

Your life insurance should cover this significant debt should you no longer be around.

£
?

According to Money Advice Service, full-time childcare in the UK now costs £242 a week.

The loss of a parent could result in the need for additional childcare whilst the surviving parent increases their hours to account for lost income.

Your life insurance cover should factor in this additional required outgoing.

£
?

The average level of debt (minus a mortgage) in the UK is £15,385.

Factoring in any outstanding debts in your name when arranging life insurance ensures this burden is not passed to loved ones.

£
?

You may wish to leave your loved ones an inheritance or lump sum gift upon your passing.

Factoring in the gift amount when arranging your cover will ensure the pay out amount will be sufficient to provide your loved ones with this selfless gesture.

£
?

According to SunLife, the average cost of a UK funeral is now £4,417, whilst the total cost of dying is £9,493.

This is a 130% increase over the past 16 years and shows no signs of slowing down.

A significant cost which should be factored into the amount of life insurance you secure.

£
?

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.

£ -

Your total cover estimate

£ 0

Let us find your best quotes.

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 for life insurance.

While you’re in young adulthood you may not have a steady partner or children but it’s important to consider that the cost of your funeral will still need to be covered.

The average cost of dying has risen significantly over the past 17 years and now resides at £8,864[2].

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.

Best life insurance for young adults

The best life insurance for a young adult will depend on your individual circumstances.

There are multiple life insurance policies available, each with their own price point and each well suited to protecting different aspects of your life.

These include:

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

Therefore, the best life insurance for you will be the policy that meets your specific needs and is at a price you can afford.

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

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 from some of the UK’s leading life insurance providers, as well as smaller specialists, to find the right policy at the best price.

Our award-winning quote service is fee-free.

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 life insurance for young adults
  • Cover lasts for a specified period of time (up to 40 years)
  • Pay out will be paid 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 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 life insurance for young adults
  • 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 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 for young adults
  • 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
Whole of life insurance for young adults
  • Cover lasts for life
  • Guarantees a pay out when you pass away (not if)
  • Will pay out a fixed lump sum
  • Sum assured up to £1,000,000
  • Not the best option for young adults as you’ll be required to pay premiums for life. This could become costly over the policy lifetime and you could pay more in than it will pay out
  • Premiums start from 27p-a-day through Reassured ±

How much life insurance do I need?

When determining how much life insurance do I 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 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.

However, even if you're unsure of what the future holds, there's still the option to increase your cover at a later date with a special events option.

How much is life insurance for a 30-year old?

At Reassured, life insurance for a 30-year old can be arranged from just 20p-a-day.

Although the price you pay will vary as insurers calculate the exact price of life insurance premiums based on the level of risk you pose.

Being a young adult means you can benefit from lower premiums due to your age and likely better health.

Factors life insurance providers take into account to calculate your premium include:

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

The table below shows example prices for those in their 30s. Quotes are based on a non-smoker, in good health, for £100,000 of cover:

AgeLevel term price per month (30 year term)Decreasing term price per month (30 year term)
30£5.56£4.55
31£5.88£4.68
32£6.22£4.80
33£6.58£5.01
34£6.97£5.20
35£7.43£5.38
36£7.98£5.64
37£8.57£5.93
38£9.21£6.28
39£9.90£6.62


As you can see from the table above, pricing can increase significantly based on age. Waiting until your late 30s could mean you pay much more for your cover.

Seize the day and arrange affordable cover as a young adult to lock-in your lowest premium, contact Reassured for your free quotes.

Life insurance for first-time buyers

Due to surging house prices, it can now take longer than ever to save to buy a property. However, the average age of a first-time buyer in the UK is still in early adulthood at 32-years old (having risen over the last 3 years[5]).

Whilst it isn’t a legal requirement to have life insurance when purchasing a property, it’s usually recommended.

Even if you have no dependants who are reliant on a family home, if you’ve purchased a property with a partner, friend or family member a pay out from a life insurance policy can help them to keep up with mortgage payments after your passing.

Without life insurance, your death could mean that the house is repossessed or sold to cover any outstanding debt.

Taking out life insurance at the point of purchase means you’ll benefit from locking in low premiums due to your age, allowing you to safeguard this large asset for any children you may have in the future.

Therefore, you can rest assured that if the worst were to happen, your mortgage would be covered.

Contact Reassured for your free mortgage life insurance quotes.

Life insurance for young parents

Despite many choosing to become parents later on in life, the average age of a first-time mum is still in early adulthood at 31 years old[3].

Having a child is often a defining life event when people start to seriously plan for the future.

Sadly, a child loses a parent evert 22 minutes in the UK[4].

Taking out family life insurance can ensure that if the worst were to happen, your partner would receive the funds required to stay in the family home and support your children.

Alternatively, if you’re a single parent, or both you and your partner were to pass simultaneously, your child would be provided for.

Protect the financial future of your family with Reassured, simply get in touch for your free quotes.

Life insurance for young smokers

While taking out life insurance at a young age can help you save money on your premiums, if you’re a young adult who smokes you’re likely to experience inflated premiums.

Not to mention, as a smoker, the longer you put off taking out cover the more you’ll pay compared to a non-smoker.

For example, a smoker in their 20s may face an increase of around 25% - 30%, whereas someone in their 50s could end up paying double the price of a non-smoker[6].


The table below shows the price comparison between a smoker and a non-smoker.

Quotes are based on an applicant in good health for a level term life insurance policy with a 20-year term for £100,000 of cover:

AgePremium price per month for a smokerPremium price per month for a non-smoker
20£4.02£3.50
25£5.38£3.77
30£6.88£4.55
35£9.84£5.68
40£15.28£7.81
45£24.86£11.12
50£40.93£16.53


As the table shows, it’s even more beneficial for smokers to take out life insurance as young as possible to secure the most affordable rate.

Quitting smoking can help you to save money on premiums regardless of age, however, you’ll need to be free of nicotine for at least 12 months before you’ll be offered non-smoker rates.

Find the most affordable smokers life insurance using the fee-free services of Reassured.

Life insurance for under 30s

For many under the age of 30, the main financial focus is keeping up with day-to-day outgoings.

As a result, you may be reluctant to take on another monthly outgoing.

However, most life insurance policies are available to you from the age of 18 and the sooner you take out cover the more money you could save on your premiums in the long run.

For those under 30, life insurance premiums are significantly cheaper due to the reduced risk you pose.


The table below shows example quotes for life insurance under 30.

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

AgeLevel term price per monthDecreasing term price per month
18£3.58£3.93
20£3.66£3.98
25£4.57£4.05
29£5.31£4.42


As the table above shows, it’s possible to secure life insurance in your 20s for less than £5 a month. The closer you get to your 30s, the more you’re likely to pay.

Don’t hesitate and lock-in low premiums by taking out life insurance under 30.

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 cover the remaining balance of any debt in your name.

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

Can you change your cover amount during the term?

Yes, it can be possible to increase your level of cover during your policy term with 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.

Having a policy which includes a special events option will allow you to lock-in super low premiums in young adulthood, while meeting your future needs when the time comes.

This option will allow you to change your level of cover due to a change in circumstances, for example buying a bigger home or growing your family.

The specific circumstances in which you can increase your cover may vary between providers and will be outlined in the policy.

If you choose to increase your cover your premiums will also increase. However, you won’t need to provide any additional medical information.

Please note that not all polices will offer this option.

To discuss the guaranteed insurability 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 will only be one pay out (which is usually after the first death).

This could mean that not enough cover is in place should you both pass away at the same time, affecting the financial stability of your children.

Due to your age it could be financially viable to take out two single policies to provide two separate pay outs.


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

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

AgeJoint life cover price per monthTwo single policies price per month
20£6.28£7.32
25£6.92£8.56
30£8.00£11.12
35 £9.90£14.86


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

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 you’ll 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 actually 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.

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 very good investment.

To obtain your free life insurance quotes, contact our award-winning team.

Other policies for young adults

There are also a number of additional policies available to young adults, including:

Income protection

An income protection policy can pay out up to 70% of your usual annual income in monthly (tax-free) payments while you’re unable to work due to illness or injury.

Payments can help you to continue living your current lifestyle while you’re unable to 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.


Critical illness cover

Critical illness cover can be added to a life insurance policy to provide an additional level of cover, or can be taken out as a standalone policy through some providers.

It will provide you with a lump pay out if you’re diagnosed with a serious illness. 

This funds could be used to cover lost income and/or pay for private medical treatment.


Terminal illness cover

Terminal illness cover comes free of charge with all term life insurance policies.

It will allow you to make an early claim on your policy if you’re diagnosed with a terminal illness and given less than 12 months to live.

The funds could pay for private medical treatment and/or allow you to get your financial affairs in order.

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 best available price.

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.

Whether you’re in your 20s or 30s, why not seize the day, lock-in the lowest premium and secure your long-term future?

Sources:

[1] https://www.moneyhelper.org.uk/en/family-and-care/becoming-a-parent/childcare-costs

[2] https://www.sunlife.co.uk/siteassets/documents/cost-of-dying/cost-of-dying-report.pdf/

[3] https://www.refinery29.com/en-gb/average-age-of-new-mum-uk

[4] http://www.childhoodbereavementnetwork.org.uk/research/key-statistics.aspx

[5] https://www.theguardian.com/money/2022/jan/22/average-uk-first-time-buyer-is-now-older-than-30-says-halifax

[6] https://www.confused.com/life-insurance/guides/does-smoking-affect-my-life-insurance-premium

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