Money Expert > Life Insurance > What's the right age to take out life insurance?
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Last updated: 23/05/2025 | Estimated Reading Time: 11 minutes
Few of us like to contemplate our own deaths, but is an inevitable fact of life, and one that can be financially disruptive and even devastating to the ones you leave behind. That's why, since the 18th century, Britons have been insuring their own lives, paying instalments in life so their survivors can receive a financial windfall or simply support after their deaths.
Just under half of all Britons have some form of life insurance policy, some provided through their employers and some linked to mortgages. These policies can pay out a lump sum or monthly income to survivors, pay off the outstanding balances on mortgage, replace the salary of the deceased, or at the very least, cover the expenses of a funeral, which regularly run over £4,000.
But at what age should you start reckoning with your mortality and making provisions for a future without yourself? You can earn cheaper life insurance premiums by taking out a policy when you're young, but it's also unlikely you have the financial and personal obligations to require life insurance at that point. Additionally, most life insurance products sold as term policies, these policies may expire before you most need them. So what's the magic age?
The right age to take out life insurance often depends on personal circumstances, but generally speaking, many experts suggest considering it earlier rather than later to guarantee your loved ones financial protection.
In Britain, it is quite common for people to begin thinking about life insurance when they reach major life milestones such as buying a home, getting married, or starting a family.
These events create financial responsibilities that life insurance can help protect. By taking out a life policy while you are young and healthy, you are also more likely to benefit from cheaper premiums, which can significantly reduce life insurance costs over the lifetime of the policy.
For many young adults in their twenties or early thirties, life insurance may not seem like a priority. However, if you have dependants or debts, such as a mortgage or significant loans, taking out life cover at this stage can be a wise decision.
Even if you are single and debt-free, locking in a policy while you are in good health can safeguard you against higher costs later in life if your health deteriorates. It is all about being prepared for the unexpected and achieving financial security , ensuring that loved ones can manage financially should the worst happen.
Middle age is often a time when people start seriously considering life insurance if they have not already. By this point, you may have a family that relies on your income, and financial commitments such as school fees, a mortgage, or business responsibilities that need protection.
However, waiting until your forties or fifties can mean facing higher premiums and potentially fewer options if any health issues have emerged. Therefore, while it is certainly not too late, it is usually more cost-effective and straightforward to arrange cover earlier.
Ultimately, there is no definitive "right" age that suits everyone, as each person's situation is unique. The key is to assess your financial responsibilities and long-term plans early on, ensuring you choose the right life insurance policy .
Whether you are a young professional, a new parent, or someone nearing retirement, having a policy in place can offer valuable peace of mind.
Life insurance is about protecting the people who matter most to you, and the sooner you start planning and comparing life insurance quotes , the better positioned you will be to secure the right cover at the best price.
Life insurance premiums are closely tied to age because, quite simply, age is one of the biggest indicators of risk for insurers. The older you are, the higher the likelihood that a claim will be made during the policy term.
In Britain, insurance companies use actuarial data to calculate how long a person of a certain age is statistically likely to live. Younger individuals are generally considered lower risk, as they are less likely to suffer from serious health conditions, making them cheaper to insure.
As a result, someone in their twenties will usually pay significantly less for the same amount of cover than someone who takes out an insurance policy in their fifties.
As you get closer to retirement age, the chances of developing health issues increase, and this greater risk is reflected in higher premiums. Insurers have to balance the potential pay out they might have to make with the amount of money they collect through monthly payments.
In addition to age, other factors like your medical history, lifestyle habits, and occupation are also considered, but age remains the starting point.
This is why it is often recommended to take out life insurance sooner rather than later, locking in a lower premium while you are still young and healthy. By doing so, you can save a considerable amount of money over the lifetime of your policy, making it the cheapest life insurance option available .
Despite the financial benefits, relatively few young people are taking out life insurance policies. Perhaps we all feel invincible or immortal in our early 20s.
Additionally, young people have few financial and familial responsibilities, especially as the ages of buying a home and having children -two life events that often prompt people to take out life insurance- have increased.
According to research from Halifax, Britons are now 32 years old, on average, when they purchase their first home, up from just 23 in 1960 and 29 in 2011. In 2019, just 28% of Britons age 25 to 34 owned homes, a significant reduction from the 67% who did in 1991.
Meanwhile, first time mothers now average 31years of age, with childbearing having been on an increasingly delayed trend since the mid 1970s. As we delay starting families in the UK, we also delay purchasing the life insurance policies to provide for them after our deaths.
Additionally, millennials are coping with lower incomes and higher living expenses, including the high costs of renting and student loans, that make the additional expenses of life insurance less practical when choosing an insurance provider .
In fact, according to research by Legal and General, only 9% of millennials without a mortgage (those reaching adulthood in the early 21st Century) hold life insurance.
Many financial experts recommend you take out insurance before you reach 35. Premiums, as well as health problems, rise sharply after that threshold.
Even if you don't yet own a home or have children at that age, you'd do well to secure a policy early and lock in lower premiums, which you'll be grateful for when you do have a mortgage, garden, and a couple of ankle-biters.
Wait too long to buy insurance and you'll not only face higher monthly bills, your options for coverage will be more limited. Some life insurance providers won't extend coverage to those over 65 or will only for shorter terms.
You might have to take out a type of specialist life insurance policy called over 50s cover. You can't be rejected from these policies, either for age (under a certain maximum) or health conditions and the pay out is both fixed and guaranteed if the worst were to happen.
But the sums insured are often much lower: they're typically used just to cover funeral expenses, not to provide for a family following your death.
Conversely, you don't want to jump the gun and take out coverage too early in life either. Most life insurance policies are term products, running for 20, 25, or 30 years.
Purchase one in your early 20s and it could expire in your 40s, long before your familial and financial commitments have lapsed-while you still have mortgage payments to make and while your children are still living under your roof.
You might then be compelled to seek out another policy, and this time with the steeper premiums earned by your more advanced age.
You could aim to own life insurance before 35. But life circumstances, especially in the face of serious illness, will often make the decision for you, making insurance an indispensable expense. Below, we'll take a look at the two most common life events that prompt consumers to seek out life coverage.
Taking out a mortgage is one of the biggest financial commitments most people will ever make, and it is often a major reason why individuals decide to get life insurance. A mortgage typically lasts for decades and involves large monthly repayments, at an average of £1,428 across the UK*.
In Britain, many property owners choose life insurance to ensure that, should the worst happen, there would be enough money to pay off the mortgage, allowing their family to stay in the home without financial struggle.
Lenders themselves may not always require life insurance, but having it in place provides crucial peace of mind that your loved ones would not be left with an unmanageable debt.
Term life insurance is a type of life cover that provides protection for a fixed period of time, known as the "term". If you pass away during the term of the policy, it pays out a tax-free lump sum to your chosen beneficiaries. If you outlive the policy, however, there is no pay out, and the cover simply ends.
However, there are different types of life insurance designed specifically with mortgages in mind. For example, decreasing term life insurance is a popular choice for people with a repayment mortgage, as the amount of cover reduces over time in line with the outstanding loan.
This way, the policy remains affordable while providing protection exactly where it is needed. Some people also opt for level term insurance if they want the pay out to remain fixed, regardless of how much is left on the mortgage.
Either way, arranging life insurance alongside a mortgage is a sensible step towards securing long-term financial stability for your family.
Starting a family is one of the most important reasons to consider buying life insurance. Once you have children, your financial responsibilities naturally increase, and ensuring their future security becomes a top priority.
In Britain, many parents take out life insurance to make sure that, if they were no longer around, there would be enough money to cover essential costs such as childcare, school fees, or simply maintaining the family’s standard of living.
Life insurance can provide a tax-free lump sum to your loved ones, offering vital financial stability during what would already be a very difficult time emotionally.
Buying life insurance when starting a family also means you are more likely to secure lower premiums, especially if you arrange cover while you are still young and in good health.
Policies can be tailored to fit your needs, whether you want to cover the cost of raising children, paying off a mortgage, or saving for their future education.
Many parents choose to match their policy length with the time it would take for their children to become financially independent. Taking action early is worth thinking about as it not only locks in more affordable premiums but also offers peace of mind, knowing that your family would be protected no matter what happens.
Health and lifestyle have a major impact on life insurance in Britain, as they are key factors insurers use to assess risk. Generally, the healthier your lifestyle, the lower your premiums are likely to be.
Factors such as smoking, high alcohol consumption, being overweight, or having pre-existing medical conditions can all increase the cost of cover because they raise the likelihood of a claim being made.
On the other hand, maintaining a healthy weight, exercising regularly, and not smoking can help you secure much more affordable life insurance.
When applying, insurers usually ask detailed questions about your health history, family medical background, and lifestyle habits to get a full picture of your risk level.
Being honest is a legal requirement, as inaccurate information could affect a future pay out. Leading a healthier lifestyle not only improves your overall well-being but can also make it easier and cheaper to protect your loved ones financially.