When should you get life insurance?

This content was reviewed and approved by Geoff Eaton and Fiona Robson.

The information on this page should not be considered as financial advice. If you are unsure what’s right for you, please make sure you speak to a financial adviser. 

Most people consider life insurance when they reach a significant milestone like starting a family, buying a house, or when dependents rely on their income. It provides financial protection for loved ones should the worst happen. 

While there is no wrong age to get life insurance, it’s often less expensive the younger you are. This guide will look at when to get life insurance, so you have all the information you need to make an informed decision.

When should you get life insurance and why?

When you get life insurance is up to you, but it’s important to weigh up your financial obligations before taking out a policy. 

If you die unexpectedly, who would pay the mortgage? What would be the financial impact on those you leave behind? Would your loved ones have enough money to continue living in the same house? Could they afford the household bills? 

Life insurance provides peace of mind that your chosen beneficiaries will be financially secure if you pass away. Some common reasons people take out life insurance cover include: 

Buying a home 

If you die before your mortgage is repaid, you can ensure your loved ones can either pay off the outstanding mortgage in full, or keep up with regular repayments mortgage life insurance.  

Both level term life insurance and decreasing term life insurance also help others meet mortgage obligations when you’re gone. Which option is most suitable depends on whether you have a repayment mortgage or other reducing debt, or an interest-only mortgage. 

Getting married 

Life insurance ensures you and your partner are both covered if one of you passes away. Couples generally choose from two types of life insurance policies.

• single life cover (only covers you) 
• joint life cover (covers you and your partner)  

Joint life cover is usually cheaper than two separate single policies because a surviving partner would no longer be covered if one of you dies, and they would need to take out a single policy of their own. Separate single life policies will pay out when either partner dies. 

Starting a family 

Having children is one of the most common reasons people buy life insurance. Life insurance for your family helps you plan for the future and gives your loved ones financial protection should the worst happen. 

Many life insurance providers offer life insurance policies that continue until your dependents reach maturity. It could give them a payout when they turn 18 or even later if that’s what you decide. 

Planning a funeral 

Over 50s life insurance can be used to pay for your funeral and relieve others of the financial burden in the event of your death. This form of cover is generally cheaper than other types of life insurance and, consequently, the payout is less. 

Over 50s life insurance provides an additional amount of cover for later in life and it is often used to fund certain costs like a funeral or provide a modest payout that can be passed down as inheritance. 

Inheritance tax 

Inheritance tax bills can be expensive and reduce the sum your children inherit. Some life insurance policies cover inheritance tax costs so that your loved ones inherit the full amount intended. 

Alternatively, you could also place your life insurance policy in trust which will lower the amount of inheritance tax you pay. 

Does age affect when to get life insurance? 

While there’s no correct time to take out life insurance, your age is an important factor. Because our chances of dying increase as we get older, insurance providers use age to determine how much you should pay for your policy. 

It stands to reason that how much you pay for your life insurance is greater the older you are when you take it out,  as the likelihood of a claim is greater, and you’re more likely to die while your policy is running. Providers always consider other factors such as your health and lifestyle choices such as whether you smoke along with your age when determining life insurance payments. 

When you apply for life insurance, your provider may request a medical report from your doctor.  

What should I be aware of before taking out life insurance?  

If you stop paying your life insurance premiums, your cover may end, and you won’t receive a payout. Similarly, LV= won’t pay a claim if you intentionally take your own life within the first 12 months of your policy.  

There are other policy stipulations which are covered in your policy information sheet. It’s important that you read this fully before agreeing to a life insurance policy.  

What’s the best age to buy life insurance? 

There is no optimum age to get life insurance. As long as you’re over 18-years-old, or about to turn 18-years-old, you can take out a policy, though it is typically more expensive the older you get. 

The longer you delay taking out a life insurance policy, the higher your premiums will likely be. In other words, buying life insurance in your younger years means your premiums are likely to be lower and more affordable for the term of your policy. 

Rather than age, most people take out life insurance when others rely on their income. For example, when you buy your first property, get married, have children, or have a relative in care. 

Is there a maximum age for life insurance? 

LV= life insurance is available to UK residents aged 17 to 84. The length of your policy can run between 5-50 years, but it must end before you reach the age of 90. 

Ultimately, you’ll get the best value from life insurance by taking out a policy when you’re young. The later you leave it in life, the more expensive your premiums will be based on the increased risk of mortality and health problems associated with older age groups.   

When you get life insurance, what impacts the cost other than my age?  

Life insurance providers take many things into consideration in addition to your age when working out the cost of a policy. You can also add critical illness cover to your life insurance policy for additional cost. With LV= this is available to UK residents aged 17 to 64 when your policy starts. Your policy must run for at least 5 years and no longer than 50 years, and it must end before any individual insured reaches their 80th birthday. 

The cost of life insurance is impacted by: 

1. Your occupation 

Some jobs are considered higher risk than others, and this can affect the amount you pay for life insurance. Whether you’re a teacher or construction worker, you will need to tell your insurance provider what you do for a living. 

2. Your health status 

Your past and present medical history is an important factor when determining life insurance cover and the cost of your premiums. You’ll need to be accurate and honest about your health when applying for cover. 

3. Your family medical history 

You must inform your insurance provider if your family has a history of hereditary medical conditions. As this may increase your chances of dying within the terms of your policy, you can expect to pay higher premiums. 

4. Your hobbies and lifestyle 

If you spend your free time skydiving or participating in other dangerous sports, your life insurance premiums could be higher due to the obvious risks involved. Similarly, your provider will take other factors into account such as alcohol consumption, drug use, or past or future travel. 

5. Whether you’re a smoker 

As smokers are likely to experience more health problems than non-smokers, you must inform your insurance provider if you smoke as this will impact how much you pay for your cover. 

When don’t you need life insurance? 

Life insurance provides financial protection for many people, but some may feel it isn’t right for them in their present circumstances. Life insurance may not be necessary if: 

• you’re single with no dependents,
• your partner and dependents are financially secure,
• your dependents don’t rely on your income,
• your income is low and your dependents may qualify for state benefits.

If life cover isn’t right for you, other types of insurance may be more beneficial such as income protection which offers financial security if you’re unable to work through ill health or an accident. 

Similarly, critical illness cover gives you a fixed payment if you’ve been affected by a life-changing condition such as cancer, stroke, or heart disease, or if you suffer a serious accident that prevents you from working.