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 40s & 50s
Many people say that life really does start at 40. Many of the initial financial pressures that come with being younger have now subsided, however looking after yourself is now more important than ever.
As you’re now getting older, the likelihood of a medical condition developing starts to rise and if a serious medical condition were to occur, so would the costs of taking out a policy or even the possibility of being ineligible for cover at all. Living a healthy lifestyle, however, can massively help cut down costs and (as ever) the sooner you decide to purchase, the better.
Up until now, you may have only considered a ‘term’ life insurance policy which pays out a set amount if you pass away in a given period; although you may now want to start considering a ‘whole-of-life’ policy which covers your life until you pass away. Knowing the pros and cons of both to make an informed choice is absolutely crucial, and Cavendish can help.
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).
However, the tax will need to be paid before your loved ones are given access to your estate. This can put your family in a difficult position - they need to pay a tax bill which may run into (tens of) thousands of pounds, but they wouldn’t be able to use the money in your estate to do so.
As a result, many families are forced to take out loans just to cover this bill, which at an already upsetting time, may be particularly stressful. A whole-of-life insurance policy could help avoid this issue. The payout would provide the funds required to clear the inheritance tax bill without your loved ones needing to take out a loan or go into their own savings to cover it. This though, is reliant on the policy being written in trust.
Whole-of-life cover may also appeal if you are determined to leave some form of inheritance to your loved ones, or if you want to help with your funeral costs.
Many people who have a life insurance policy in place tend not to review it very often, however, it’s important to understand if the policy still meets your needs (as well as finding cheaper life insurance) - that’s where Cavendish can help.
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.
Get a quote now...
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