Many young people don’t think about life insurance. It’s often seen as something that you don’t need until you’re older, or something to sort out later. Many people don’t realise the importance of life insurance until they have a significant change in their life i.e. a mortgage, a baby or a new job, by this time your life insurance premiums will already have become more expensive.
Obviously, if you have new importance in your life then that is a brilliant time to get life insurance, to protect you and your family. However, it is also important to protect yourself before this; because you never know when an accident may happen, and you need the support of life insurance. One main thing that may change as you get older is your health, as the older you get the more likely you are to develop conditions and illnesses such as diabetes, high blood pressure and arthritis etc.; and if left untreated can cause further serious complications like heart attacks or strokes, the aftermath of which can be life altering. If you do suffer from a medical condition, finding life insurance afterwards can be difficult and, depending on your condition, you should expect to pay more or possibly not be able to get full cover. Therefore, it is important to get life insurance while you’re young and at your healthiest as it will save you money and keep you protected.
Furthering this, even if you are lucky enough to age without developing a medical condition, the price of your cover will still rise. This is due to the unfortunate fact that the older you are, the more likely you are to pass away and your policy to pay out. This means that you are a higher risk for the insurer, and they will therefore increase your premium as a result of this. For example, if you wanted to take out £100,000 of cover for 20 years when you are 25 years old, providing you don’t have any severe medical conditions, this would be a fairly cheap premium, around £5-10 a month. However, if you were to take out the same level of cover when you are 50, the premium would be significantly more expensive, and you could expect to pay around 4 times the premium you would pay when you were younger, and this increases rapidly the older you get.
In addition to this, the amount and type of cover available to you reduces as you get older. This means that as well as having to pay more for your cover, you may also have less cover available to you. A prime example of this is over 50’s cover, this is designed to be funeral cover and you don’t need to answer any medical questions to take out this cover. Although the maximum amount of cover you can have is severely limited compared to regular life insurance policies, the maximum amount you can take out is around £35,000; and this is if you are 50 years old and a non-smoker at the time of your application. Whereas with a regular life insurance policy you can take out millions of pounds of cover (as long as you can afford it and the insurers approve your application). It is possible to take out a regular life insurance policy if you are over 50, however it can be difficult to obtain if you have any pre-existing medical conditions and it will mostly likely be considerably more expensive than taking out cover when you were younger.
There is no “perfect time” to take out life insurance, and there are loads of different types of life insurance available to you so you can get the right cover for you no matter your age. However, the earlier you get cover, the more protection you have. The youngest you can take out life insurance is 18 years old, if you are over 18, we can help you to find that life cover to give you peace of mind.