Life insurance for young adults

Life insurance pays out a lump sum of money if you die while you hold the policy. Your loved ones could use the money to help pay bills or maintain their living standards when you're no longer here.

And while there are different types of life insurance, if you’re a young adult, you may want to explore term life insurance policies. These are policies that last a specific length of time, or a term. You can choose the length of cover you need, from short-term to 50 years (or until you’re 90 years old). And you’ll have a choice between decreasing, level term, or increasing life cover (more on these below).

It's also important to note that, typically:

1. if you stop paying your premiums, or cancel the policy, your cover will end and you won’t get any money back.
2. term life insurance isn't a savings or investment plan and will only pay out on a successful claim.

You can apply for life insurance cover with us from the age of 18. And there’s no right or wrong age to get it. Although it may seem like certain ages or life stages lend themselves more to getting life insurance, it entirely depends on your circumstances and needs.

Am I too young for life insurance?

To be eligible to apply for life insurance with us, you must be over the age of 18. As a young adult, you may consider taking out a policy if you're:

• supporting dependents – even at a younger age, you may have financial responsibilities. You may be helping your parents, siblings, or a child financially. Life insurance could help to financially support dependents if you die during the policy term.
  Even if you don’t have dependents, life insurance could help cover funeral expenses, so your family isn’t left with unexpected costs.
• covering shared debt – this means that if you’ve co-signed a loan (like financing a car) or share rent with partner or friend, then having a life insurance plan could help prevent leaving them with the burden of repayment.
• looking to save on premiums – your policy is based on your health and lifestyle the day you apply. The younger you are when you take out a life insurance policy, the greater the chance that your health may be in a better place than in decades to come. This often means that the younger you are when you take out a policy, the lower your premiums could be (although not always, as it depends on each individual application). 

So, getting life insurance isn’t entirely about your age. It’s also about how you think about your financial reality now and how you’d like it protected in the future. 

With term life insurance policies, premiums are based on several factors. This includes your health, lifestyle, and the level of cover you choose. When you apply, the insurer looks at your circumstances at that point in time. For most life insurance policies, if you take out a policy earlier, your cover is set based on those details and stays the same for the length of the term, as long as you keep paying. If you wait until later in life to apply, your situation (like your health or lifestyle) might be different, which can affect the cost and options available.

Insurers use this information to calculate risk, which is why applying at different stages of life can lead to different outcomes. There are some policies available which start at a lower cost when you are younger, but increase in cost as you get older.

If you’re in your 20s, you might not have a mortgage or kids yet, but you probably have other financial goals and responsibilities. It may be that you’re supporting a sibling through school, contributing to family bills, or have joint financial commitments with a partner or friend. A term life insurance policy could help make sure those responsibilities are taken care of if you die.

With term life insurance, you can choose a policy length that fits your plans, whether that’s 10, 20, or even 30 years. If your situation changes (like taking on new financial commitments or supporting loved ones), you can review your policy to make sure it still works for you.

The key is to think about who might need support if you weren’t around, and what financial commitments you’d want covered. Your policy pays out a lump sum if you die during the term, as long as you keep up with your payments.

For young adults, two popular types of term life insurance are level term and decreasing term cover. But there’s also increasing term to consider.

• Level term life insurance provides a fixed payout amount if you die during the policy term. This means the amount your loved ones would receive stays the same throughout the length of the policy. It’s a straightforward option if you want to make sure those you care for have a set amount of financial support, no matter when a claim is made during the policy term.
• Decreasing term life insurance is designed so the payout amount gradually reduces over time. This type of cover is often chosen to match debts that decrease over the years, like a repayment mortgage or certain loans. It can be a practical choice if your main goal is to help pay off outstanding balances (if you were to pass away during the policy term), so your loved ones aren’t left with those financial commitments.
• Increasing term life insurance provides cover for a set period, but the payout rises over time to help keep pace with inflation. Inflation is the general increase in the price of goods and services over time, which reduces the purchasing power of money. As costs rise, the value of a fixed payout would buy less in the future. With an increasing term policy, the payout grows in line with inflation to help maintain its real value. However, because the cover amount increases, your premiums usually rise too.

All three options let you choose a policy length that fits your plans, whether that’s 10, 20, or 30 years. Our Life Insurance Plan offers both level and decreasing term cover (with the option of increasing life insurance as part of our term life insurance), so you can tailor your policy to your lifestyle and financial goals as a young adult.

You’ll also have access to unlimited Digital GP consultations - 24/7, 365 days a year - plus physical and mental health support, and nutrition advice through the Aviva DigiCare+ app.

The Aviva DigiCare+ app is provided by Square Health and they provide the services together with other carefully selected partners.

This is a non-contractual benefit which we can change or withdraw at any time. Terms and conditions and the privacy policy can be found in the app. Residency restrictions apply.