Life insurance rarely feels like a priority in your twenties or early thirties, particularly if you don’t have children or a mortgage. But over time, it could become the smartest financial decision you make.
Buy early
A big advantage of buying life insurance early is the cost. Premiums are lower when you’re healthier and statistically less likely to make a claim. A 30-year term policy taken out at 25 will usually be far cheaper than the same policy bought at 45 and your monthly payments will remain fixed for the length of the term.
Not just for families
Even if you don’t yet have children or a partner who relies on your income, life insurance can still be useful. It can provide peace of mind if the worst happens, knowing that those closest to you won’t be left paying off debts such as student loans, credit cards or a mortgage. As your life changes, your policy can change too, adjusting the amount of cover you need if you have children, change jobs or move up the property ladder. For most people, the earlier you consider life insurance, the more affordable and flexible it can be. While it’s not essential for everyone at a young age, locking in a policy early gives you one less thing to worry about in the future.
As with all insurance policies, conditions and exclusions will apply
