‘Lifelong savings’ for young adults who take out life cover early
Life insurance can be handy at any stage of life – but especially if you’re young and living in London or the South East.
Young people who are interested in owning property ignore life insurance at their peril – particularly if they are putting down roots in an area where property is pricey.
That’s one of the main takeaways from the latest Life Insurance Snapshot, Compare the Market’s quarterly bulletin that looks at the state of the UK’s life insurance market.
Life cover policies – which typically pay a lump sum or regular payments to your dependants if you die – can help clear outstanding debts such as your mortgage and give your family money to live off.
Taking out a policy early pays
New data from Compare the Market showed that:
- people aged 25-34 can expect to pay a little over £15 a month for life insurance
- over-65s who only take out a policy when they need it can expect to pay almost double this amount (£27.38)
- the average monthly premium for a cover amount of £10,000 to £19,999 is currently just £7.95
- the average monthly premium was the highest in Greater London (£22.28) and in the South East (£21.50), compared to the cheapest rates, which could be found in Scotland (£16.68)
But it’s in the most expensive locations, where high property prices are reflected in the cost of policies, that buying life insurance is especially advised.
Kamran Altaf, Head of Life Insurance at Compare the Market, commented:
“There are lifelong savings available to those willing to get ahead of the curve and take out a policy early. For those yet to take out a mortgage, it is worth opting for a small cover amount that can cater to any credit card debt and in turn reduce the cost of your policy.”
As well as the area in which you live, the cost of a life insurance policy depends on several factors including your age, lifestyle, and how long you want cover for.
Kamran added: “Life insurance can offer invaluable financial protection for your loved ones should disaster strike, so it is always worth taking out cover regardless of your current age and life stage.”
What is the Life Insurance Snapshot?
The Life Insurance snapshot is a quarterly report from Compare the Market showing who’s taking out life insurance, what life stage they’re at and what level of cover they’re choosing.
Download the life snapshot.