But when is the best time to take out life insurance?
The simple answer is that the earlier you purchase it, the cheaper it tends to be.
However, the decision is also influenced by factors such as financial responsibilities, dependents, and future planning.
In this article, I will explore how age impacts life insurance, examine the pros and cons of buying at different life stages, and outline key factors to consider when deciding when to take out a policy.
How Age Affects Life Insurance
1. Premium Costs Increase Over Time
One of the biggest factors affecting life insurance premiums is age.
The younger you are when you take out a policy, the lower your monthly premiums tend to be.
This is because insurers calculate risk based on age and health, and younger individuals are statistically less likely to make a claim during their policy term.
As you get older, the likelihood of health issues increases, which can make life insurance more expensive.
If you wait until later in life to get cover, you may face higher costs or even find that certain health conditions impact your eligibility.
2. Health and Eligibility Considerations
When you apply for life insurance, you may need to answer medical questions or undergo a health assessment.
The older you are, the more likely it is that insurers will request a medical exam to determine your level of risk.
Conditions such as high blood pressure, diabetes, or a history of smoking can all increase premiums or limit your policy options.
By purchasing life insurance earlier in life, you can secure a policy before any health concerns arise, ensuring that you are covered without restrictions or exclusions.
3. Policy Options Change With Age
The good news is that in order to get a life insurance quote and sign a contract there’s usually no minimum age limit, as long as you’re above the age of 18 of course.
Conversely if you’re beyond 70 years old your options may be limited to more specialised senior life insurance plans and providers. Different types of life insurance policies are more suited to certain age groups.
Here’s a quick overview:
- Term life insurance (which covers you for a fixed number of years) is popular among younger buyers who want affordable coverage while paying off a mortgage or raising a family.
- Whole of life insurance (which provides cover for your entire lifetime) is often preferred by those looking for a guaranteed payout to leave behind for dependents or cover inheritance tax.
- Over-50s plans are designed specifically for older applicants who may have difficulty getting standard cover, often offering guaranteed acceptance without a medical exam.
Choosing the right policy at the right time can make a significant difference in affordability and suitability for your needs.
A life insurance specialist such as myself can assist in guiding you through the policy choices and help you choose the best provider and cover.
Pros and Cons of Buying Life Insurance at Different Ages
Buying in Your 20s
At this age, assuming you’re in good health, insurance providers consider you a low-risk applicant, which means life insurance premiums can start from just a few pounds a month.
Another advantage of getting life insurance in your 20s is that medical examinations are often not required.
Most applicants at this age are accepted without screening, making it a hassle-free process.
Plus, securing a policy early can be a smart move if you plan to have kids or take on a mortgage in the next 5–10 years.
You’re essentially locking in your insurability before any potential health issues arise.
Pros of Buying Life Insurance in Your 20s:
1. Lowest Premiums Available
Life insurance is generally cheaper the younger and healthier you are. Buying a policy in your 20s means locking in significantly lower premiums compared to purchasing one in your 30s or 40s. Over the life of the policy, this can save you thousands of pounds.
2. Fewer Medical Requirements
Many policies for young applicants don’t require medical exams or extensive health screenings. This makes getting coverage easier, especially if you’re in good health, as insurers consider younger individuals lower risk.
3. Quick Application Process and Easy Approval
Since insurers view young adults as low-risk, the approval process is typically much faster and more straightforward. Many policies offer instant approval or minimal paperwork, making it easy to get covered without hassle.
4. Can Lock in Low Rates for Future Years
By securing life insurance in your 20s, you lock in lower premiums for the duration of the policy. Even if your health changes later in life, your rates remain the same. This provides long-term financial security and ensures you won’t have to pay higher premiums due to age or health issues in the future.
Cons of Buying Life Insurance in Your 20s:
1. Unnecessary Expense
If you don’t have financial dependents or significant debts, paying for life insurance might not be a priority when you could be investing or saving elsewhere.
2. Long-Term Commitment
Life insurance policies require consistent payments over many years. If your financial situation changes, you may struggle to keep up with premiums.
3. Opportunity Cost
The money spent on life insurance premiums could be used for investments that may provide higher returns, such as a pension, stocks, or property.
4. Changing Needs
Your financial and personal situation in your 20s may be very different from your 30s or 40s. You may later find that the policy you took out no longer fits your needs, meaning you’d have to change or cancel it.
5. Employer Coverage May Be Enough
Many jobs now offer life insurance as part of their benefits package, reducing the need for a personal policy.
6. Inflation & Policy Value
If you lock in a policy early, the payout amount might not keep up with inflation over time, meaning it could be worth less in real terms when it’s eventually needed.
7. Better Policies May Be Available Later
The insurance market evolves, and you may find better deals, more flexible options, or new types of policies as you get older.
Buying in Your 30s
Buying life insurance in your 30s strikes a balance between affordability and necessity.
This decade is often marked by significant life milestones—buying a home, starting a family, or advancing in your career.
With greater financial commitments, life insurance becomes increasingly relevant, providing crucial protection for your loved ones in case the unexpected happens.
While premiums are slightly higher than in your 20s, they remain affordable, making your 30s an ideal time to secure coverage before costs rise further.
Pros of Buying Life Insurance in Your 30s:
1. Still Relatively Low Premiums
While premiums increase slightly compared to your 20s, they are still relatively low. Life insurance rates are primarily based on age and health, meaning the sooner you take out a policy, the more affordable your monthly or annual premiums will be. Locking in a policy now can save thousands over the life of the plan.
2. Ideal Time if You Have a Mortgage or Young Family
Many people in their 30s take on major financial responsibilities, such as buying a home or starting a family. Life Insurance can provide peace of mind, knowing your dependents will be financially secure.
3. More Financial Stability to Afford Life Insurance
Compared to your 20s, your 30s often bring a more stable career and higher income. This financial stability makes it easier to budget for life insurance premiums without significantly impacting your lifestyle.
4. Access to a Wider Range of Policies and Coverage Options
In your 30s, you have more choices when it comes to life insurance policies. You can opt for term life insurance, which provides coverage for a set period (e.g., 20 or 30 years), or whole life insurance, which offers lifelong coverage and builds cash value.
Cons of Buying Life Insurance in Your 30s:
1. Premiums Are Slightly Higher in Your 30s
While still affordable, life insurance premiums in your 30s are more expensive than if you had taken out a policy in your 20s.
The longer you wait, the more insurers factor in potential health risks, which increases costs. Although the difference may seem minor initially, it adds up over the years.
2. Competing Financial Commitments
Your 30s often come with significant financial pressures—mortgage payments, childcare costs, student loan repayments, and saving for retirement. With so many financial priorities, it can be tempting to delay purchasing life insurance.
3. Health Issues May Start to Develop
While most people in their 30s are still in good health, this is the decade when some medical conditions begin to surface. If you develop a health issue such as high blood pressure, diabetes, or a chronic illness, insurers may charge higher premiums or impose exclusions on your policy.
4. You May Not Need It Yet
If you’re single with no dependents and minimal financial obligations, life insurance may not be an immediate necessity. Paying for coverage you don’t yet need might not be the best use of your money, especially if you have other financial goals like investing, buying a home, or saving for a business venture.
Buying in Your 40s
Your 40s are a time when life insurance often shifts from being a consideration to an essential part of your future financial planning.
With family responsibilities, mortgage repayments, and long-term financial goals becoming more significant, securing a life insurance policy ensures that your loved ones remain financially protected in case of the unexpected.
The good news is that financial stability at this stage often makes managing premiums easier.
However, premiums are noticeably higher than in younger years, and any health conditions that have developed may impact eligibility or increase costs.
Despite these factors, securing coverage in your 40s can provide much-needed peace of mind as you move closer to retirement.
Pros of Buying Life Insurance in Your 40s:
1. More Financial Stability, Making Premiums Easier to Manage
By your 40s, you may have a more established career, a steady income, and greater financial security than in your younger years. This financial stability makes it easier to factor life insurance premiums into your budget without significantly impacting other expenses.
2. A Time When Life Insurance Becomes Essential Due to Family Commitments
For many, the 40s are when life insurance becomes non-negotiable. If you have children, a spouse, or other dependents, securing a policy ensures they will be financially supported if something happens to you. Whether it’s covering daily living expenses, paying off debts, or funding future costs such as university fees, life insurance provides crucial financial security for your loved ones.
3. Higher Coverage Amounts May Be More Justifiable
In your 40s, your financial obligations tend to be higher—whether it’s mortgage repayments, school fees, or general family expenses. Since your income is also likely at its peak or growing steadily, you may be in a better position to afford a more comprehensive policy with a higher payout, ensuring your dependents are well taken care of.
Cons of Buying Life Insurance in Your 40s:
1. Premiums Are Noticeably Higher Than in Younger Years
One of the biggest downsides of waiting until your 40s to take out life insurance is the cost. Premiums increase significantly as you age, meaning you’ll pay more for the same coverage than if you had secured a policy in your 20s or 30s. Over the long term, this can add up to a substantial extra expense.
2. Health Conditions May Start to Affect Eligibility
As you get older, health issues such as high blood pressure, diabetes, or other medical conditions become more common. Insurers assess risk based on your health, and any pre-existing conditions could lead to higher premiums or exclusions on your policy. In some cases, certain health conditions might make it more difficult to qualify for coverage altogether.
3. Limited Policy Options Compared to Younger Applicants
While there are still many life insurance options available in your 40s, the choices may be more restricted than in your 20s or 30s. Some insurers may place limitations on the length of term policies or require more thorough medical assessments before offering coverage.
Buying in Your 50s & 60s
By the time you reach your 50s and 60s, life insurance serves a different purpose than it did in your younger years.
While it may no longer be about income replacement, it can still play a crucial role in financial planning—helping cover funeral expenses, leaving an inheritance, or ensuring outstanding debts are not passed on to your loved ones.
The good news is that life insurance is still available, whether through term policies, whole life insurance, or over-50s plans.
However, premiums are significantly higher at this stage, and health conditions may limit your options or increase costs.
Pros of Buying Life Insurance in Your 50s & 60s:
1. Still Possible to Get Term or Whole Life Insurance
Even in your 50s and 60s, life insurance options are available. Depending on your needs, you can still secure a term policy (covering you for a fixed number of years) or a whole life policy (providing lifelong coverage). Whole life policies can also build cash value over time, offering an extra financial resource if needed.
2. Useful for Funeral Costs, Inheritance Planning, or Covering Outstanding Debts
One of the primary reasons people take out life insurance at this stage is to cover end-of-life expenses. A policy can help relieve your family of funeral costs, which can be thousands of pounds. It can also serve as an inheritance tool, ensuring you leave behind a financial gift for your loved ones or covering any outstanding debts, such as a mortgage or personal loans, so they are not passed on to your family.
3. Over-50s Plans Offer Guaranteed Acceptance
If health concerns make it difficult to qualify for standard life insurance, over-50s life insurance plans offer guaranteed acceptance without medical examinations. While these plans typically have lower payouts and cost more, they can still provide a lump sum to help with final expenses or supplement inheritance planning.
Cons of Buying Life Insurance in Your 50s & 60s:
1. Premiums Are Significantly Higher
The biggest downside of waiting until your 50s or 60s to buy life insurance is the cost. Because insurers see older applicants as much higher risk, premiums increase substantially compared to life insurance policies taken out in earlier years. Depending on your age and health, the cost of coverage may be difficult to justify.
2. Health Conditions May Limit Options or Increase Costs
By this stage, health concerns become much more common and a more significant risk. Insurers assess these risks carefully, which may lead to higher premiums, exclusions, or even declined applications. If you have pre-existing conditions, you may need to explore specialist insurance providers or guaranteed acceptance plans, which often come with lower payouts.
3. Limited Choice as Fewer Providers Offer Policies
As you get older, the number of insurance providers willing to offer life insurance decreases. Many providers have age limits on their policies, especially for term life insurance, meaning your options may be more restricted. While over-50s plans are widely available, they often come with lower payouts and fewer customisation options compared to standard policies. This limited choice can make it harder to find a policy that suits your specific needs at an affordable price.
The Cost of Waiting: Why Sooner is Better
Waiting to purchase life insurance can lead to significantly higher costs.
Every year you delay, your premiums increase, and there is a higher chance that new health conditions will make cover more expensive or harder to obtain.
If you purchase a policy earlier, you lock in lower rates for the entire term, making it more affordable in the long run.
Additionally, some policies allow you to convert or extend cover later without additional medical checks.
This means you can start with a simple policy when young and upgrade as your needs change without being penalised for age or health changes.
Factors to Consider When Deciding When to Buy
Before deciding when to take out life insurance, consider the following:
1. Do you have dependents?
If you have a partner, children, or other relatives who rely on your income, life insurance is crucial to ensure their financial security.
2. Do you have a mortgage or debts?
If you have outstanding loans or a mortgage, life insurance can prevent financial strain on your family if you pass away.
3. Do you want to leave an inheritance?
Whole life insurance can provide a guaranteed payout to beneficiaries, ensuring they receive financial support.
4. Do you have employer-provided cover?
Some employers offer death-in-service benefits, but these may not be enough to fully cover your family’s needs.
Assessing your financial obligations and future plans will help you determine the best time to buy.
The Best Life Insurance Policy Type for Each Age Group
- 20s & 30s: Term life insurance is often the best choice due to its affordability and flexibility.
- 40s: Term life insurance is still a good option, but whole life policies may be considered for estate planning.
- 50s & 60s: Whole life insurance or over-50s policies can be useful for inheritance planning or covering funeral costs.
Choosing the right policy ensures that you have the protection you need at each life stage.
My Advice
The best age to buy life insurance depends on your circumstances, but purchasing a policy earlier in life provides significant cost advantages.
Life insurance offers peace of mind, ensuring that your loved ones are financially protected when they need it most.
If you are considering life insurance, don’t wait until costs rise or health conditions make it harder to qualify.
Get in touch with me today for expert advice and find the right policy to suit your needs.
Common Life Insurance Questions
Is it too late to buy life insurance at 50 or 60?
No, you can still get life insurance, but premiums will be higher, and medical requirements may apply. Over-50s plans offer guaranteed acceptance if needed.
Should I get life insurance if I have no dependents?
If no one relies on your income, you may not need life insurance yet. However, if you plan to have a family or buy a home in the future, locking in a lower rate early can be beneficial.
What’s the difference between mortgage life insurance and regular life insurance?
Mortgage life insurance (decreasing term cover) is designed to pay off your mortgage if you die. Regular life insurance can be used for any financial needs, including supporting your family or leaving an inheritance.