Generally speaking, there’s usually no better time than now to arrange life insurance cover, however it’s important to understand the range of options and products available to you, whatever your age.
From your 20s to your 60s and beyond, we’ve put together a guide for what to consider once you meet these milestones.
Life Insurance in your 20s & 30s
Typically, when it comes to buying life insurance: the younger you are, the less expensive it will) be.
However, younger people tend to put off buying life insurance due to other financial concerns, such as car finance, student loan repayments and paying a mortgage. While paying bills is critical, missing out on buying life insurance policy at a young age can be costly, much like delaying saving for your retirement.
If you have other people who depend on your income and you don’t already have life insurance in place, it’s important that you consider taking out a policy as soon as you can.
It’s also worth bearing in mind that if you’re at the beginning of your financial journey, there will be lots of changes that will happen over the coming years. As these changes come, so will your insurance needs.
Life Insurance in your 60s & beyond
We all know life insurance is crucial if you have family members who are financially dependent on you, however as you get older, your loved ones may have become more independent and are no longer reliant on your income. You may have now cleared your mortgage and your children may have since left the home to start their own families.
Now may be the best time to consider a ‘whole-of-life’ policy. With a whole-of-life insurance policy, the clue is in the name. As we all (unfortunately) die one day, this policy is ongoing so it will pay out a lump sum whenever that day comes.
TIP: Whole-of-life insurance is also known as life assurance by many insurers.
Naturally, these policies are typically more expensive than term insurance policies since as long as you keep paying your premiums, the insurer will always have to pay out, whereas you may outlive a term insurance policy.
One of the main benefits of whole-of-life insurance is that it can help your family deal with any bills associated with inheritance tax. Currently, if an estate is valued at more than £325,000, inheritance tax will be charged at 40% on the value of the estate above that threshold (correct for the 2020/2021 Tax Year).
For the best rate and policy, shop around.
Cavendish Online is committed to ensuring our fees and charges are highly competitive and transparent - so you know exactly what you are paying for when you use our different services.
We can help you find the best and most affordable option for your individual circumstances, with products from leading financial service providers and the best value possible with minimal charge amounts.
To help find the best life insurance policy for you, we won’t limit your search to just one company.
Get A Quote Online Today
Once you’ve given this information some thought, it’s then really easy to arrange and compare online life insurance. Simply enter your details into our site and we’ll ask some questions to generate quotes so you’ll be able to see what policy works out best for you.
Prefer to phone?
Sometimes, it’s easier just to give us a call and speak one-to-one with one of our insurance specialists, who can guide you through the process and support you in choosing the best cover for you and your family.
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