Buy life insurance as young as you can to save in the long run
Nearly everyone in the UK will have a need for life insurance at some point in their lives. Life insurance has been designed to help people look after their financial responsibilities if the worst happens, and is a great way of making sure your family are looked after if you were to die unexpectedly.
Life insurance is currently at the lowest cost it’s ever been, as people are living for longer, and the number of people claiming has reduced. It does still however hold its place as the most important form of insurance you’ll buy, and the amount you spend on it now can hugely influence the amount you’ll spend over your lifetime.
Many people leaving university and getting their first jobs will not even be aware that life insurance exists, let alone the importance of the cover, and they also won’t be aware that the cheapest time for them to buy life insurance is in their early twenties, and that the level of cover they can buy then will not increase or the whole term of the policy.
If a 21 year old took out a 40 year policy covering them for £300,000 they may be hugely over covered at the beginning of their lives, but by the time they have had a family and bought a house their level of cover would be about right. They’d also only expect to pay about £15 a month for that cover for the whole policy, costing £7200 over the whole 40 years.
If the same customer bought their cover at 31, for a 30 year policy they’d expect to pay around £40 to £50 a month for their cover, spending a massive £9000 more over the thirty years, spending £16200 over the 30 year period.
Whilst the 21 year old has ten years of outlay whilst they don’t really need the cover, in the long run they are far better off, and protected just in case.
Life insurance provides cover at a great rate, but if you can afford to cover yourself young, it will really make a huge difference to your overall lifetime outlay on life insurance.