You just turn Under 30 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 Under 30 Years Old: which cover you should get, what life insurance terms you should pay attention to, etc.
Table of Contents
Is life insurance necessary for Under 30 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 Under 30 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 Under 30 Years Old?
What are the different types of life insurance for Under 30 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 insurance||Details||Reviews|
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||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||
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.
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 Under 30 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:
|Critical illness as an add-on||
Can really protect your loved ones in case of illness.|
Expensive option for small budget
|Policy in trust||Your family won’t have to pay for taxes when receiving the sum.|
|Really protects your family by indexing your life insurance as they are sure to get the same benefit a few years later.|
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|
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.
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.
How much is life insurance for Under 30 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 Under 30 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 Under 30 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 group||Joint life insurance (monthly premium)||Single life insurance (monthly premium)|
How much will my life insurance for Under 30 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 group||Critical 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)|
|More than 60 years old||£528.06||£333.10|
Average level term insurance (10 years to 20 years): additional critical illness
What are the best life insurance for Under 30 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)||Details||Reviews||Monthly premium (including critical illness as add-on)|
|Vitality life insurance: ||5/5 Defaqto rating|
|Royal London term insurance:||2/5 Defaqto rating|
|AIG term insurance: ||5/5 defaqto||Level: £4,82|
|Legal & General term insurance: ||4/5 Defaqto rating|
|Aegon term insurance: ||4/5 Defaqto rating|
|Zurich term insurance: ||3/5 Defaqto rating|
|LV term insurance: ||3/5 Defaqto rating|
|Aviva term insurance: ||3/5/Defaqto rating|
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 Under 30 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 Under 30 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 Under 30 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 Under 30 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.