Life Insurance for Young Adults (Under 30)

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By Cai Bradley

on Friday 9 August 2019

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Although it may not be at the forefront of most young adults’ minds, taking out life insurance as a young person could result in very cheap premiums for a good level of cover.

Life insurance premiums are calculated based on risk and the likelihood of the policyholder making a claim within the policy terms, so it’s generally a rule of thumb that the younger you are, the less you’ll pay per month for your life cover policy.

The truth of the matter is that taking out life insurance when you’re older, and perhaps unwell, could result in higher premiums and a limited level of cover, so the best time to take out a policy is while you’re still young, healthy and full of life.

Get the cheapest life insurance as a young adult

If you want to know how to get cheap life insurance cover, it’s quite simple - take it out while you’re still young!

The younger you are, the less likely you are to fall ill or pass away. You’re therefore less likely to make a claim on your life insurance policy, which means the provider will reward you with cheaper monthly premiums.

In fact, life insurance for young people can be taken out for as low as 20p per day in some cases, highlighting the most important benefit of purchasing cover as an 18 to 30-year-old – it’s cheap!

But, despite the benefits of life insurance for young people, almost a third of those under 30 don’t have a policy in place. Why?

Life insurance is usually taken out to:

  • Cover any unpaid debts, bills, or mortgage payments
  • Provide a gift or inheritance to loved ones
  • Help your family and dependants financially
  • Cover the cost of your funeral to take the burden away from family members

Because the above reasons for taking out life insurance are unlikely to cross the minds of most young people so early on in their lives, it’s easy to dismiss the thought of cover and wait until it is needed (which is often too late).

Remember, many life insurance policies have fixed premiums, so you’ll continue paying the exact same amount throughout the length of the term – whether that’s 20 years, 40 years, or more – and it won’t change, even if you’re diagnosed with an illness later on in life.

You may not see the benefits immediately as a young person, but a lot can change during the course of your life insurance policy, so be sure to plan ahead with your future needs in mind. 

If you don’t purchase life insurance at a younger age and decide to take it out when you’re over 50 and perhaps not as healthy as you once were, you’re bound to be charged significantly higher premiums.

It’s almost certain that your future self will thank you for taking out a policy as a young adult!

Young people with children or a partner (dependants)

A dependant is anyone that would be affected if you were no longer able to provide for them financially.

Some younger adults will have dependants, others won’t. Either way, it’s important to consider taking out cover as early as possible.

Those with children or dependants will be able to see the benefits of life insurance more clearly – as they’ll have the peace of mind in knowing that their loved ones will be financially provided for in the event of them passing away.

Your life insurance payout could provide financial support for your children while they’re in full-time education, or it could be used as a fund for their first home, or perhaps simply to help dependants with their day-to-day needs when you’re no longer around.

What about those without dependants?

Not all young people have dependants who rely on their income to get by, so it might be more difficult for them to see exactly why they should take out life cover.

In the UK, the average cost of a funeral alone is £3,757, so even if you don’t have dependants, your loved ones will still be hit with a pretty significant financial burden if you don’t have cover in place.

The emotional distress of losing a friend or family member is bad enough, without the added worry of not being able to cover the cost of a suitable funeral.

Debts you may owe as a young person

When you pass away, your debts are usually cleared by taking the value from your estate – which would otherwise go to your family.

As a young person, you may not have a mortgage to pay off just yet, but there are some debts that will need clearing, for example:

  • Credit cards
  • Overdrafts
  • Rental agreement
  • Car finance

That’s where life insurance would come into play – covering any debts in your name after you pass away, without taking anything away from the value of your estate and what’s left behind for your loved ones.

The best life insurance for young people at Unite Life

If you’re looking for low cost life insurance, get it done while you’re young – and that’s right now! Those who are under 30 will almost certainly get cheaper life insurance deals than the equivalent person who’s a few decades older.

Regardless of your age, call us today for a free, no-obligation chat about your situation and the type of life insurance policy you should have.

Whether you need whole of life cover, term life insurance, or critical illness cover, we can help.

Our friendly and trained advisors are on-hand to find the best life insurance deals for you, young or old! Simply complete our short contact form or give us a call for free using the number below.

08000 106 194

Unite Life can help you save on insurance – get in touch with us today!

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