What Are The Best Life Insurance Policies For 23 Years Old?

antoine fruchard Antoine Fruchard  updated on June 23, 2020

You just turn 23 Years Old? You’re now wondering if you have to take a life insurance? But, what kind of life insurance should you choose? There are so many things to consider. 

If you are looking for the answer, you’ve come the the right place! 

In this guide, we will explain everything you need to know about life insurance for 23 Years Old: which cover you should get, what life insurance terms you should pay attention to, etc.

Is life insurance necessary for 23 Years Old?

We’ll try to answer to this two following questions: What age should I take a life insurance? And why should I take a life insurance? 

  • First of all, you should consider taking out life insurance In Your 20's because it is the best way to protect your loved ones if something happens to you.
  • Secondly ,taking out a life insurance In Your 20's will make you save money in the long run. The younger you take out your life insurance, the cheaper it’ll be. 
  • Thirdly, it’s simply for peace of mind. Needing to take care of all financial matters during a period of grief is not an ideal situation. Taking out life insurance would take the weight off your shoulders. For example, if you took out a student loan, life insurance can protect your relatives if you were to pass away.

There is no life insurance for 23 Years Old as a policy; it is more a combination of elements in your policy that can give financial protection to you and therefore for your loved-ones.

  • Choosing you coverage: term life insurance or whole life? Single life or joint life?
  • If you are taking a term life: for how long?
  • Will you include add-ons such as critical illness in life insurance for 23 Years Old? 

What are the different types of  life insurance for 23 Years Old? 

When choosing life insurance In Your 20's, you have to make a lot of important choices. You have to choose between different policy types to find what would best cover your needs. As the first big choice, you have to choose between: 

  • Term life insurance. Term insurance splits into two types: level term or decreasing insurance. If you choose a term insurance, once again you would have to choose between these two. 
  • Whole of life insurance. This insurance will pay out when the policyholders die.
Term life and whole life insuranceDetailsReviews
Term level
  • It guarantees that your loved ones get a payment if you die during a specific period of time. 
  • The amount decreases over the policy term.
  • Really useful if you have a loan, as the price tends to decline over time.
If you outlive after the term, your family will never have this sum, and neither will you.
Cheaper than whole life insurance, can be a good choice for young people.
Term decreasing also known as mortgage insurance
  • It guarantees that your loved ones get a payment if you die during a specific period of time. 
  • The amount decreases over the policy term.
  • Really useful if you have a loan, as the price tends to decline over time.
If you are in your 20’s and took out a student loan, for example, it is a good policy to have. 
Whole of life insurance
  • It covers you for your whole life.
  • You pay a premium each month, and your loved ones will receive a fixed lump sum when you die.
  • With this policy you are building a cash value that can be borrowed if needed.
Really protective insurance, as your family will receive a cash sum in all cases as long as you pay your premium.
More expensive than others, such as term life insurance. 
Policy types life insurance for 23 Years Old

For 20 years old, taking a term insurance can be a good alternative, as term insurance can cover you until your 50’s for example, and you could switch to over 50 life insurance that is a specialized insurance for senior. 

If you can afford a whole life insurance, it is always a good choice as it is really protective. 

What could you add to your life insurance for 23 Years Old?  

Choosing family life insurance is not an easy thing to do, because you must consider all the add-ons that you can put in your policy in order to be best protected: 

OptionsDetailsReviews
Critical illness as an add-on 
  • It is an extra that can be added to your policy, or can be combined with your standard life insurance. 
  • Pays out if you contract a disease.
  • The illness developed must be specified in your policy contract.
  • The most common illnesses covered are cancer, heart attacks, etc.
  • If you become really ill, your insurance will pay out exactly as if you’ve passed away.

Can really protect your loved ones in case of illness.
Expensive option for small budget
Policy in trust 
  • Life insurance usually is tax free, but if your policy is not written in trust, your loved ones may have to pay tax on the sum they will get. 
Your family won’t have to pay for taxes when receiving the sum. 

Indexation 
  • Indexing your life insurance allows you to have the equivalent pay-outs today or in 20 years, as life insurance is a long-term product. 
Really protects your family by indexing your life insurance as they are sure to get the same benefit a few years later. 
Add-on to life insurance for 23 Years Old

Critical illness combined with life insurance will pay just once. But critical illness as an add-on will pay for your illness and death. 

Should you take out single or joint insurance In Your 20's? 

You can also choose between having a joint policy or a single policy, if you are in relationship for exemple:

Types of policy Details Reviews
Joint policy
  • Covers two people that are together by the same policy. 
  • At the end it is cheaper than two single policies.
  • Covers both of your contributions to the family.
  • Only pays out once.
  • The sum will be given to the other partner if one dies.
  • Leaves the surviving member of the couple without life insurance after the death of the first partner.
Cheaper than taking two single policies. 
Not really protective, as when one passes away, the other is no longer insured and will have to take out a single policy that will be at higher cost as they are now older.
Single policy 
  • This kind of insurance pays for one person only.
  • Pays out the amount chosen.
Taking out two policies is more expensive. 
You can choose the level you want, beneficial if the two partners don’t need to be insured at the same level. 
Much more protective than a joint policy because you are sure to have two pay-outs, and you are protected in case of a break-up.
Single or joint life for 23 Years Old

How much is life insurance for 23 Years Old?

The big question is knowing how much life insurance you need. Your answer to this question will determine the price of your life insurance. 

  • Your age 
  • Your medical conditions
  • Whether or not you are a smoker 
  • Which add-ons you add to your life insurance for 23 Years Old
  • Your salary if you have one
  • The coverage you want
  • Whether you take out a joint policy or not

So you must ask yourself the relevant questions for your own situation, for example: Do you have a loan? Do you have savings? Do you have debts? Do you have a family that counts on you, such as brothers, sisters or your parents? Does your job offer protection? 

A 30-year-old in good medical condition will pay less than a 45-year-old smoker who’s in bad medical condition, for example. 

So, when you are 23 Years Old, we can imagine that it will be even cheaper! The later you take out your life insurance, the more expensive it will be because the price will be based on your current state of health and age. The higher the risk, the more expensive it is.

Here is a little table so that you can see the difference between the two types of policy, which can help you decide which policy suits you better: 

Age groupJoint life insurance (monthly premium) Single life insurance (monthly premium)
20-30£11.79£7.18
30-40£16.02£8.54
40-50£31.98£17.52
(Term insurance 15-30 years – amount around £175,000)

How much will my life insurance for 23 Years Old cost if I add critical illness insurance? 

In this table, we can see how much it costs to have critical illness cover with either joint life insurance or single life insurance. 

Age groupCritical illness add-on to life insurance with a joint life insurance (monthly premium)Monthly cost of single life insurance with critical illness cover (monthly premium) 
18-28£24.63£12.70
28-38£44.58£26.63
40-48£92.09£50.87
50-57£174.89£103.89
More than 60 years old £528.06£333.10
Adding critical illness to life insurance for 23 Years Old

Average level term insurance (10 years to 20 years): additional critical illness

What are the best life insurance for 23 Years Old?  

You can either choose term insurance or whole life insurance. We have put together a list of the best life insurance quotes and their features. 

Best term insurance (single policy)DetailsReviews Monthly premium (including critical illness as add-on)
vitality logoVitality life insurance:
  • Min entry age: 16
  • Max entry age: 74
  • Min term: 5 years
  • Max term: no max term (but must end before 90 years old)
  • Max cover: £20,000,000
  • Terminal illness cover
5/5 Defaqto rating
Mid-term adjustment
Level: £8,01
royal london logoRoyal London term insurance:
  • Min entry age: 18
  • Max entry age: 78
  • Min term: 1 year
  • Max term: 72 years
  • Max cover: Unlimited
  • Terminal illness cover
2/5 Defaqto rating
Mid-term adjustment
Level: £5,24
aig logoAIG term insurance:
  • Min entry age: 18
  • Max entry age: 88
  • Min term: 2 years
  • Max term: 70 years
  • Max cover: Unlimited
5/5 defaqto Level: £4,82
legal general logoLegal & General term insurance:
  • Min entry age: 18
  • Max entry age: 77
  • Min term: 1 year for level cover and 5 years for decreasing cover
  • Max term: No limit but must end before 90 years old
  • Max cover: Unlimited
  • Terminal illness
4/5 Defaqto rating
Mid-term adjustment 
Level: £6
aegon logo Aegon term insurance:
  • Min entry age:18  
  • Max entry age: 89
  • Min term: 1 year
  • Max term: 50 years
  • Max cover: Unlimited
4/5 Defaqto rating
Mid-term adjustment 
Level: £5,82
zurich logoZurich term insurance:
  • Min entry age:16
  • Max entry age: 83
  • Min term: 1 year
  • Max term: 50 years
  • Max cover: £40 million
  • Terminal illness cover
3/5 Defaqto rating
Mid-term adjustment 
Level: £6,54
logo liverpool victoria 2LV term insurance:
  • Min entry age: 17
  • Max entry age: 79
  • Min term: 5 years
  • Max term: 45 years
  • Max cover: Unlimited
  • Terminal illness cover
3/5 Defaqto rating
Mid-term adjustment 
Level: £5,61
logo avivaAviva term insurance:
  • Min entry age: 18
  • Max entry age: 89
  • Min term: 1 year
  • Max term: 50 years
  • Max cover: Unlimited
3/5/Defaqto rating
Mid-term adjustment 
Level: £5
Best term insurance for 23 Years Old( 20-year term / £150,000 pay-out / 20-30 years old

Can I take out life insurance for my parents? 

Yes, you can decide to take out whole life insurance for your parents. This can help with paying funeral costs and outstanding bills, etc. Of course, you will need their agreement. You can have a look at our article on this subject, about over 50s and 60s life insurance.

 How do I cancel my life insurance for 23 Years Old? 

You can cancel your life insurance, but it means that you and your family won’t be protected anymore. Keep in mind that if you want to take out your insurance again, it will be much higher. If you want to stop paying premiums for a while, this doesn’t make economical sense, because the younger you take out your life insurance, the cheaper it is. 

Sometimes, it happens that you want to cancel your policy because your situation has changed and you no longer need this type of insurance. For example, maybe you’ve finally managed to pay off the loan on your house. 

  • You have 30 days to cancel your life insurance without any charges. 
  • After these 30 days, you must write to the insurer to announce that you wish to cancel your life insurance. Usually there is no extra charge to cancel a life insurance policy, but you won’t be refunded your premium. 

How do I make a life insurance claim? 

Here are the few steps to make a life insurance claim. Usually, it doesn’t take weeks; it is more a matter of days: 

  • Contact life insurance company: explain to the life insurance company that you are making a claim. 
  • A few documents are important in order to make the claim, in particular the death certificate. 

You must fill out all documents and forms. 

Then you will receive the pay-out. Depending on the circumstances, it can arrive quite fast. 

It is better to write your policy in trust because the insurer will pay the nominee on the policy directly, and the pay-out won’t be taxed by the estate tax. 

Can I update my life insurance for 23 Years Old? 

Yes, some insurers leave you this choice to take a higher policy premium if your family is expanding. Your monthly premium will be higher too.

How do I get a life insurance for 23 Years Old quote? 

Applying for life insurance can be a long process. You need to know exactly:

  • How much cover you would need. Verify if you already have protection through your job, for example, and calculate the right amount. 
  • How long you want the cover for. 

Find out what the best life insurance for your family is with our 100% anonymous tool.

What are the alternatives to life insurance for 23 Years Old? 

There are alternatives to life insurance. However, these options are more a way to complement a less expensiver life insurance plan than to replace family life insurance completely: 

  • Income protection: An income protection policy is an insurance plan that covers you if you are unable to work due to illness, injury or unemployment. It is designed to pay part of your lost earnings. 
  • Death in service benefits: This is a lump sum payment given by your employer. If your employer offers this kind of benefit, it means that they will pay a cash sum when you die. Of course, you must still work for the company to benefit from this insurance. Take a look at the terms and conditions written.
  • Family income benefits: You don’t receive a lump sum but instead get a monthly payment during the term.