When should you start thinking about life insurance?

When it comes to life insurance, many people take out a policy after a major milestone like buying their first home or starting a family.

It's often when they make a serious, long-term financial commitment such as a mortgage, or have people in their lives that depend on their income.

To help you decide whether now is the right time for you, we've put together a guide on when to start thinking about life insurance and what to look out for.

Term vs whole life

Term and whole life are the two most common types of life insurance, but what are the main differences between them?

Term life insurance provides cover for a set period of time, such as 10, 20 or 30 years. If you were to pass away during this term, then your loved ones would receive a payout to help cover the cost of bills and childcare.

Meanwhile, whole life insurance covers you for life but is generally more expensive than term. Some whole life policies also come with a savings scheme known as the cash value, which grows over time and gives you the ability to take out loans against your policy.

Both can be set up on a joint basis, meaning couples only need to pay one premium each month rather than for two separate policies.

Is it too early?

If you're still living with your parents or don't have many financial commitments, you might think it's too soon to think about life insurance.

But as premiums are based on your age when you apply, you're likely to pay far less if you get a policy in your 20s, for example. So, why not give it some thought?

Buying a home

Getting the keys to your first home is incredibly exciting, as it marks the start of a new chapter in life. It's also a huge financial commitment, so many people decide to purchase life insurance for added security.

Most choose a policy that runs for the same amount of time as their mortgage, meaning it can be taken care of if they die before the end of the mortgage term.

Starting a family

Once you welcome little ones into the world, you'll want to protect them at all costs and life insurance can help you do that.

They're likely to be dependent on your income, so it's important to make plans to support them financially if anything happened to you.

Having a life insurance policy means your family will receive a lump sum to pay for things like a mortgage, rent or general living costs.

Over 50 policies

If you're over 50 and your life insurance cover is coming to an end, then fear not! There's plenty of dedicated over 50 policies to choose from.

Most insurers protect you between the age of 50 and 80, while some stretch from 49 to 85. It's worth paying a little each month for that extra peace of mind.

Life insurance gives your loved ones some financial security if you pass away. To learn more about our cover or to get a quote, visit our life insurance page.