Life moves so quickly when you’re in your 20s. In a flash, you’re starting a career, beginning to save for retirement, and perhaps starting a family. With so much to consider, it’s easy to overlook the future.

When you're in your 20s, life insurance may not be a top priority, but it is worth considering for several reasons. From securing lower premiums to protecting your loved ones from financial burdens, there are plenty of reasons life insurance can be a valuable investment.

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Do I need life insurance when I'm in my 20s?

Life insurance can be an important part of protecting your future. You may not think about it now, but choosing the right cover can help secure a financial future for your family/loved ones.

Everyone has different circumstances by the time they're in their 20s. Some people may already be married and have children, others might be living alone or with friends. Regardless of your situation, life insurance can help to cover any expenses incurred if you were to pass away at some stage.

Read more: When Should You Buy Life Cover?

Benefits of having life insurance in your 20s

There are several benefits to buying life insurance when you're in your 20s:

Lower premiums

Having life insurance when you’re young is beneficial in many ways. Most notably, by locking in a lower premium rate when you are younger and healthier. This way, you can benefit from a more affordable plan in the future.

Premiums are typically calculated based on age and health status. So getting cover at an early stage can help get you a better rate now and in the future.

Cover for your family/loved ones

If you have a spouse/partner or children, life insurance can help see that they’re cared for financially. If you’re the sole financial provider for your family, it could provide them with the money they need if something were to happen to you.

Easier cover approval

You’re likely to be in better health in your 20s, than if you were older. This means that it’s easier for insurers to approve your application. At your age, it’s more unlikely for you to have been diagnosed with serious health conditions that may increase your premiums.

Types of life insurance

There are two main types of insurance: term and whole life. However, it's important to note that these categories don't fully represent the wide range of insurance options available. Both term and whole insurance come in many forms, so it's important to explore all the options before deciding.

Term life insurance

Term life insurance is one of the most common types of protection. It provides cover for a specific period, as agreed with your insurer. During this time, if you die, your family/loved ones receive the death benefit. Once the term ends, the policy expires and there is no payout or cash value. Since a payout is not guaranteed, this is one of the cheapest types of life insurance policies available.. 

There are three types of term life insurance:

Level term life insurance

With this option both the payout value and premium rate remain fixed throughout the policy term. Even as you get older, your premiums won't be affected.

Decreasing term life insurance

This type of cover is typically used to protect a repayment mortgage in case you die before it's repaid. The payout value decreases over time as repayments are made. If you die before it's repaid your family can use the remaining payout to cover the rest of the mortgage. Your premiums remain the same for the life of the policy, but they generally start out a bit cheaper than level term insurance to account for the fact that the payout value is decreasing.

Increasing term life insurance

This form of cover increases in value over time, but your premiums will also increase too.. This option is usually used to keep pace with inflation and protect against the rising cost of living.

Read more: What is the best length for term life insurance?

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Whole life insurance

Whole life insurance offers permanent life insurance cover, paying out a lump sum whenever you die. As long as premiums are paid, the policy will remain in force until you die. This is beneficial for those who want to ensure their loved ones will receive a payout no matter when they pass away.

Read more: 5 Reasons why you should buy whole life insurance

Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.

If you are facing financial difficulties and can no longer afford your premiums, please contact your insurer as soon as possible to stop the plan from lapsing automatically. They may have a scheme that allows you to keep the cover.

Life events that require life insurance

Having life insurance is an important way to protect your family and loved ones in the event of your death. Examples of life events that may require you to take out a policy include:

  • Getting married: When you get married, you enter into a partnership with someone else. It’s important to protect your spouse/partner in case something happens to you. Having cover can give them the financial security they need in the event of your death.

  • Having children: Bringing a child into the world creates new responsibilities. If the worst were to happen and you were no longer around, cover can help ensure that your children are provided for financially and their future is secure.

  • Buying a home: One of the biggest investments most people make in their lifetime. If you don't have life cover in place, it could put your family at risk if you die before you've paid off your mortgage.

  • Starting A Business: Life insurance can help to ensure that your business is financially secure and can continue to operate if you are no longer around.

No matter which type of policy you choose, remember that the cover amounts should be tailored to meet your needs. The amount should be enough to cover any debts or other financial obligations your family may face.

To get an estimate of how much life insurance you need, it's a good idea to speak with one of our experienced advisers.

Speak to the experts...

Give our advisers a call today.

Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance.

The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way. 

01392 43 61 93(Monday to Friday, 9am - 5.30pm)

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