There’s been a steep rise in applications for Life Insurance in 2020 as the COVID-19 pandemic has made us all more acutely aware of our own mortality and how vulnerable we all are.

This is especially true amongst younger people, who may have never previously considered the need or benefits of having life insurance in place. The good news is, if you’re looking for a life insurance policy, there’s never been a better time with all the options available.

It’s worth bearing in mind that if you’re a younger person (who’s inherently at the beginning of their financial journey) there will be lots of change due to happen over the coming years, as will the needs of the policy.

Don’t assume that life insurance is too expensive

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 stage of life you’re at.

The question of who needs life insurance is entirely subjective, but 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. 

However, millenials and 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.

Know what you’re buying

The two types of life insurance policies you’re most likely to come across are ‘term insurance’ (the more basic form of life insurance) and ‘whole-of-life’.

The vast majority of life insurance policies taken out by younger customers are term insurance policies, however it’s worth understanding both:

‘Term’ life insurance policies run for a fixed period of time (known as the ‘term’ of your policy) eg. 10, 15 or 25 years - but only pay out if you were to die during the term of the policy. There’s no lump sum payable at the end of the term.

With a ‘whole-of-life’ insurance policy, the clue is in the name. Unfortunately, we all die one day, so as this policy is ongoing, it will pay out a lump sum whenever that day comes. Understandably, 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.

At Cavendish Online, we have a wide range of policies from dozens of providers that specialise in low cost life insurance for all ages, including younger people. Speak to the team today to choose the life insurance policy that's right for you.

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