Why get life insurance at a young age?

It’s possible to obtain some of the cheapest premiums available when securing life insurance in your 20s.

Life insurance can be significantly more expensive as you get older, due to an increased risk of health issues and/or lifestyle changes.

Therefore, locking in a fixed premium rate at a younger age could save you money over time, while financially covering your loved ones if the worst was to happen to you.

As there isn’t a set age you should secure life insurance, it’s worth considering it in your 20s. The minimum age to secure life insurance is 18, while the maximum age limit differs between insurers.

The key benefit of purchasing life insurance in your 20s is you could lock in a very low premium for a sustained period.

For example, non-smokers in good health securing £100,000 of level-term life insurance on a 20 year term could pay fixed premiums of:

  • £3.50 per month if taken at 20 years old
  • £4.29 per month if taken at 30 years old
  • £7.81 per month if taken at 40 years old

However, whether life insurance for young adults is worth it is dependent on your individual situation.

Keep reading as we cover:

Reassured can help you make an informed decision about what type of life insurance is best for you. Our friendly team are available to answer all your questions.

Simply contact us today.

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What are the pros and cons of life insurance in your 20s?

Depending on the type of life insurance you wish to secure, there are reasons for and against taking out cover in your 20s, with the main factors being:

ProsCons
Cheaper premiums - On average, new life insurance policies are more expensive the older you are. Being in your 20s with no pre-existing health conditions can help you secure the cheapest available cover over the lifetime of your policyPossible to outlive the policy - If you secure term-based life insurance, you’re more likely to outlive the term if it’s secured at a younger age
Dependents - You may be married, have children, or relatives that need your financial support. Life insurance can ease fears of their future if you were to pass awayPremiums may have to be paid long-term - While monthly premiums may be cheaper, you’re likely to pay more over the lifetime of life assurance (whole of life) policies
Peace of mind - Life can be unexpected. Knowing those who you would leave behind are financially covered can help provide peace of mindDisposable income - You may only be starting out in your career, or a student. As a result, you may not currently have spare income for life insurance
You can amend the policy with some providers - If your circumstances change in the future, then you can take out more cover. Alternatively, some insurers offer a guaranteed insurability option to increase your existing cover (available with some policies) and suit your new circumstancesOther protection - You may find other protection more appropriate in your 20s. For example, income protection is an alternative that can help to cover your financial commitments should you become too ill or injured to work


However, everyone’s personal reasons for securing or not securing life insurance will vary.

Our expert team at Reassured can talk you through your options and help you find which cover may be best suited for your circumstances.

Why get life insurance in your 20s?

While you may not have many financial commitments in your 20s, life insurance can help you plan for the future.

The pay out could help to cover:

Re payment mortgage house

Mortgage costs - The average UK mortgage debt is £142,755[1]. Although the average age of a first time buyer in the UK is around 30 years old[2], if you’re on the property ladder in your 20s, life insurance could help to protect your home should the worst happen.
Debts

Your daily living costs - Life insurance could be used to cover some of the daily household costs for your loved ones, including utilities, council tax, food, travel and quality of life money.
Couples Protection

Your partner - Whether you’re married, in a civil partnership or co-habiting, you may wish to obtain life insurance or joint life insurance to financially support your loved one if you were to pass away.
Family Protection

Your dependents - If you have children or elderly relatives who rely on you, it can be worth securing life insurance to protect them financially.
Guaranteed acceptance

Your income - If you passed away, would your family be able to financially continue without your income? Life insurance can provide a lump sum payment which could substitute your income for a period.

Other reasons that people may wish to secure life insurance, which you may currently not be concerned about include:

Health

You have pre-existing health issues - If you’re concerned about any current health issues you have and how it may impact your family if you were to pass away, it’s worth considering life insurance to help financially support your family in this situation. If you have a pre-existing condition, ensure that it’s covered on any secured policy. You may experience additional loading (higher price) on your policy.
Payment Period

It’s cheaper - As per the table below, life insurance is, on average, at its cheapest for those in their 20s.
Funeral director

Funeral costs - The average UK funeral costs £3,953, with the total cost of dying averaging £9,200[3]. Life insurance can provide a lump sum to cover your funeral costs. This may not be something you’re concerned about in your 20s, but it’s also worth factoring in when considering life insurance.
Inhertiance

Inheritance/charity donations - Many people wish to leave a financial legacy to loved ones or important causes when they pass away. You may not be considering this yet, but it can save you from being unable to if the worst was to happen.

Who should get life insurance?

Anyone over the age of 18 can benefit from having life insurance. However, different age groups may find life insurance beneficial for different reasons.

The below gives examples of what you may be facing each decade. However, these are only examples, and everyone experiences their own journey at their own pace:

Those in their 20s - You may have left home and started the first steps into your career. You may have met someone and be looking at your long-term future or be in a partnership and have children.

Because of the exciting and rapid number of changes you may face in your 20s, life insurance can help to cover a growing family, your home and more.

Those in their 30s - Many people will have left home and be renting, looking at attaining a mortgage or be currently paying a mortgage. You may be married or in a civil partnership and raising children.

As you may be building the foundations of your long-term life in this decade, life insurance can help to cover these aspects.

Those in their 40s - You may be beginning to experience health issues or have children that are at school age. You may also be progressing further in your career and be well into paying your mortgage.

Life insurance could cover pre-existing health conditions if purchased before developing certain medical conditions. It may also help to cover your day-to-day life expenses and additional childcare costs.

Those in their 50s - Your children may be starting to leave home and your elderly relatives may be requiring additional support. You may also be looking towards the next stages of your life.

Life insurance could help cover costs to help your children on the property ladder, ensure a partner can retire, or help with elderly relative’s medical costs if the worst were to happen to you.

If you’re experiencing or beginning to experience ill-health, you would be eligible at this age to apply for over 50s life insurance.

Those in their 60s and beyond - You may be beginning to look at retirement options and start to be contemplating your funeral and its costs.

You may have paid off a mortgage by this point and be starting to slow down. Further along, you’ll be progressing to your twilight years and start to think about a financial legacy you can leave.

Life insurance could help cover the majority of funeral costs, help a long-term partner with their retirement or help your children be more financially secure by providing an inheritance.

What type of life insurance do you need in your 20s?

While there isn’t a specific life insurance policy for people in their 20s, there are three different types of life insurance which could be beneficial:

Type of life insuranceTerm length with ReassuredFixed premiums?Medical information required?Guaranteed pay out?Maximum sum assured availableHow much does it cost through Reassured?Good for twenty-somethings who
Level term life insurancePredefined - up to 40 years Icon green tick Icon green tick Icon ruby cross Up to £1 millionFrom
20p-a-day † 		Have interest-based mortgages
Decreasing term life insurancePredefined - up to 40 years Icon green tick Icon green tick Icon ruby cross Up to £1 millionFrom
20p-a-day ¥ 		Have repayment based mortgages or are looking for the cheapest possible option
Whole of life insuranceUntil you pass away Icon green tick Icon green tick Icon green tick Up to £1 millionFrom
27p-a-day ± 		Want to guarantee a payment is made to loved ones when they pass


Reassured can help you compare quotes for all these policy types to help you find the right policy to meet your needs.

What age is best to get life insurance?

There’s no universal age for securing life insurance. However, the younger you are, the cheaper your premiums are likely to be.

The below table shows example costs of life insurance policies for a non-smoker, in good health, with a 20-year term and £100,000 of cover:

AgeLevel term premiumsDecreasing term premiumsWhole of life premiumsx
20£3.50£3.50£61.02
25£3.50£3.50£67.84
30£4.29£3.81£74.84
35£5.46£4.37£89.31
40£7.81£5.24£104.33
45£11.12£7.27£121.85
50£16.67£10.73£129.67

xWhole of life insurance lasts until you pass away and has no set term

Whole of life insurance is significantly higher in cost, on average, due to lasting until the policy holder passes away. Because of the guaranteed nature of the sum assured, the premiums will reflect the higher risk imposed on the insurer.

However, the most important thing to note is buying life insurance in your 20s can allow you to lock in the cheapest premium.

Reassured can help you determine which life insurance policy is best for your individual circumstances. Simply contact us today.

How much life insurance do you need?

Work out how much life insurance you may need based on your current financial commitments and what you want your policy to cover. Simply fill in the fields which apply to you for an instant calculation.

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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
£
?

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
£
?

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
£
?

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
£
?

2 in 5 adults say they are relying on an inheritance to fund their retirement.

Factoring in an inheritance to your sum assured could allow loved ones to live a more financially comfortable life. Alternatively, you could leave a cash gift to a charity of your choosing.

Source: Moneyage.co.uk
£
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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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How much does life insurance cost in your 20s?

Life insurance through Reassured can be secured from as little as £3.50 a month in your 20s.

The below prices are also based on a non-smoker, in good health, with a 20-year term and £100,000 of cover:

AgeLevel term premiumsDecreasing term premiumsWhole of life premiumsx
20£3.50£3.50£61.02
21£3.50£3.50£63.07
22£3.50£3.50£64.65
23£3.50£3.50£65.90
24£3.50£3.50£66.93
25£3.50£3.50£67.84
26£3.61£3.50£68.77
27£3.87£3.50£69.81
28£4.01£3.51£71.10
29£4.11£3.68£72.73

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What other factors impact life insurance pricing?

As well as your age, life insurance providers take other factors into consideration when calculating your premiums:

  • Health - Health complications, or pre-existing medical conditions (those that existed before, or currently exist when, applying) can result in higher premiums
  • Smoking status - In 2022, 18-24 year olds were the biggest consumers of e-cigarettes[4]. Vapers, smokers, or those who have recently used any form of nicotine product pay more on average. Insurers have differing periods that you need to be nicotine free to be classified as a non-smoker
  • Occupation - Employment perceived as dangerous, hazardous, or having a risk to your personal safety will result in higher premiums (on average)
  • Your weight and/or BMI - If you‘re considered overweight or under a healthy weight range, insurers may add an additional loading (amount) to your premiums, due to the associated health risks
  • Lifestyle choices - This can range from weekly alcohol consumption, your diet and activity levels, drug use and if you partake in any dangerous hobbies or activities. The riskier your lifestyle is perceived by insurers, the higher your premiums will be
  • Level of cover - The higher the sum assured (the pay out amount), the higher your premiums will be to accommodate this
  • Length of cover - Shorter term-based policies will be cheaper than longer term-based policies, as they cover a smaller period. This is also why life assurance (whole of life insurance) is more expensive, as it covers you for the rest of your life

It’s essential to accurately disclose this information to ensure your cover is valid when it comes to making a claim.

Failure to do so is known as 'non-disclosure'. This is a type of insurance fraud and can be done intentionally or unintentionally.

If non-disclosure is discovered, either during the policy’s term or upon a policy holder passing away, claims will be unsuccessful, and your loved ones would receive nothing.

Our expert team can ensure all the information on your application is correct and walk you through the whole application process.

Can you change your life insurance policy?

Yes, some insurers offer a 'special events clause' where your policy can be changed to reflect any additional changes in your life.

This is also known by some insurers as a ‘guaranteed insurability option’.

Because you can experience a rapid amount of change throughout your 20s and beyond, some insurers will let you amend your policy if:

  • You’ve recently got married or divorced
  • You’ve had a child
  • You’ve moved house and increased your mortgage
  • You’ve secured a new job


Providing these options are offered, you would be able to amend the policy by either:

  • Reducing/increasing the sum assured
  • Reducing/increasing the length of your policy

Amending a policy will impact the cost of your premiums but may also be cheaper than cancelling and securing a new policy later in life.

Not all insurers offer a special events clause. However, Reassured can determine whether your existing policy has this, or locate you a policy which does.

Can you buy life insurance online?

Yes, you can purchase life insurance online through Reassured.

The process is similar to purchasing life insurance over the phone and will require completing a questionnaire with your key information and the required sum assured.

You’ll be able to check quotes from some of the UK’s leading life insurance providers to secure the policy best for you.

However, if you would prefer or need to ask any questions, you can also call Reassured and one of our friendly experts can help.

We can remove all the unnecessary jargon and take the stress out of the application.

Do you need terminal or critical illness cover in your 20s?

Terminal illness cover and critical illness cover are additional layers of protection. Whether you need them will be based on your personal circumstances and what you’d like to cover.

All term-based life insurance through Reassured comes with terminal illness cover as standard and can include critical illness cover for an additional cost. However, these can't be added to whole of life insurance products at Reassured.

Terminal illness cover allows for early claims to be made if you’ve been diagnosed with a condition which results in you having less than 12 months to live. The sum assured would be received before you pass away and could help you to cover end of life care costs and other wishes you may have.

The policy will expire after the claim is made. Terminal illness cover can't be secured by itself.

Critical illness cover provides a cash lump sum if you have a serious, life changing, illness which isn’t terminal and is listed in the policy by the provided insurer. A claim can be made to cover additional care costs, home adaptations and quality of life changes.

Like terminal illness cover, the policy expires upon a successful claim. However, critical illness cover can be purchased separately with some providers.

If you’re unsure which of these are more beneficial to you, you can check our terminal illness vs critical illness article for more information.

Should I get income protection in my 20s?

Income protection is a type of policy which pays a percentage of your income if you’re too ill or injured to work.

Where life insurance pays out a lump sum if you pass away, income protection pays out in monthly instalments when you’re too ill or injured to work, imitating a portion of your usual earnings.

Income protection can:

  • Pay out up to 70% of your income (depending on the provider)
  • Be taken out with a short-term (up to 2 years) or long-term (until you retire) payment period
  • Be taken out with Reassured Advice from as little as 20p-a-day ‡

This can be a beneficial option if you don’t have adequate savings or are in a position where you don’t receive traditional sick pay benefits - like the self-employed.

For those in their 20s who may not have people dependent on them and are more concerned about affording their life expenses if incapacitated, it may be worth considering income protection instead, or alongside a life insurance policy.

The Reassured Advice team offer a whole of market comparison service and can discuss your options for income protection insurance.

Life insurance FAQ

What is the minimum age for life insurance?

You need to be at least 18 years old to secure your own life insurance policy.

Children can be added to some family life insurance policies and be covered for critical illnesses. However, life insurance for young people (those under eighteen) isn’t offered through Reassured.

Is there a maximum age limit for life insurance?

This is dependent on the insurer and type of policy you wish to secure.

The life insurance age limit can range from 70 years old, up to around 85. The exception is life assurance policies (like whole of life insurance) which will cover you until you pass away.

Do my premiums increase as I get older?

No, if you keep your policy and don’t amend its terms, then the premiums you pay will be locked in throughout the policy’s lifetime.

How much cover should I secure?

While there’s no universal amount that someone in their 20s should obtain, it’s important to make sure the cover reflects your personal circumstances.

For example, if you’re taking out a policy to only cover your remaining mortgage, you’ll need to align your sum assured with your remaining mortgage balance.

Secure life insurance in your 20s with Reassured

If you’re in your 20s and are currently considering life insurance, or looking to discuss your options, it’s worth contacting Reassured.

Reassured can compare personalised, fee-free quotes from some of the UK’s top providers - helping you find the cheapest and most accurate life insurance in your 20s for your individual needs.

Our UK based team are award-winning and can support you throughout the complete application process.

Best of all we can help you secure life insurance from £3.50 a month.

Save time and money by comparing quotes through Reassured today.

Compare Life Insurance Quotes »

Sources:

[1] https://www.finder.com/uk/life-insurance-statistics

[2] https://www.money.co.uk/mortgages/uk-mortgage-statistics-and-facts

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

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