When should I get life insurance?
From the types of life insurance to what factors go into premiums, explore what life insurance may mean for you.
Key points:
- People often start thinking about life insurance when they reach major milestones, such as buying a home or starting a family.
- There are different types of cover available to suit different needs, including level term, decreasing term and whole-of-life policies.
- The amount of cover that's right for you will depend on things like your living expenses, any debts you have, and whether anyone relies on your income.
- The cost of your policy can be influenced by factors such as your age, lifestyle, medical history, and inflation options.
When life’s big moments happen, like starting a family or buying your first home, your thoughts may drift to life insurance.
And while you may know that life insurance gives some level of financial protection for family if the worst happens, you may feel overwhelmed with what’s available. Or, more importantly, you might not be sure which policy best suits your needs.
What sort of life insurance should I get?
This depends on what would benefit you and your family most. But here are the most popular options:
- Level term life insurance lasts for a set number of years. This may be an option if you'd like the cover amount you choose to stay the same throughout the policy term.
- Decreasing term life insurance is available if you'd like a policy to help pay off the mortgage if you die. Although it's not limited to paying back the mortgage. It could also help with debt repayments. As it's designed to decrease over time, it can also be a cost-effective option.
- Whole of life insurance covers you for the whole of your life with no fixed term such as an over 50 life insurance policy.
For most types of life insurance, you can take it out as a joint policy. Doing so can be cheaper than buying two policies and you'll only have one monthly premium to pay. However, another way would be to each take out a separate policy. So when there’s a pay out for one person their policy will end – but the second person’s policy will continue. The cost of two policies will generally be higher than a joint policy.
These policies aren't savings or investment products and will only pay out on a successful claim when you die. If premiums aren’t paid when due or if the policy is cancelled, the plan will end and you'll get nothing back.
To learn more, check out our article that explores different types of life insurance in greater detail.
How much life insurance do I need?
How much life insurance you need will depend on how much your family will need to live on, to help pay off the mortgage (alongside any other debts) on your death.
Figuring out these costs may feel overwhelming, and it may be worth checking out our life insurance calculator, but there are life moments that can help you figure out how much life insurance cover you’ll need.
When should I get life insurance?
When buying a home
Buying a home can be as intense as it’s exciting. And as you’re planning everything from home décor to meeting your neighbours, it’s worth finding time to explore your life insurance options.
Taking out decreasing term life insurance, for example, could give you confidence that your mortgage will be paid off if you die before the end of the mortgage term.
You can choose the cover to run alongside the term of your mortgage and pay a monthly premium, either on your own or jointly with your partner. Finding cover that meets your needs is particularly important if you’re the main earner whose salary pays the mortgage.
If you have an existing mortgage, more than one mortgage, or in the process of re-mortgaging, it’s important to check your repayment plan for helping you calculate how much life insurance you’ll need.
When starting a family
Starting a family may involve a whirlwind of emotions, planning and practicalities.
For some, this life moment lends itself well to thinking carefully about how best to protect a growing family. And although your to-do list may seem endless (it probably is), exploring life insurance could be an important step to protecting your family's financial future.
Depending on the type of cover, like level term life insurance, your policy could give your loved ones a lump sum when you die. This could help them pay for the mortgage, loans, and general living costs.
When calculating how much life insurance you may need, having a solid grasp of your family's monthly living costs (now and those projected in the future) could help you choose the right cover.
When family rely on your income
Whether you're welcoming new members into your family or encouraging them to fly the nest, ensuring their financial stability when you die could help lessen their hardships.
And while family dynamics shift over time, you may want confidence to know that those who depend on your income could help to keep their current lifestyle if you've passed away.
Exploring our level term life insurance, also called family protection, may give you confidence in your family's future as it can help pay off:
- an interest-only mortgage
- loans and debts, outside of your mortgage
- funeral costs
- living costs for your partner and children
Also, a working estimate of each of these costs can form part of your strategy when you’re working out which life insurance policy best covers your needs and how much you'll need. Level term life insurance and decreasing cover, for example, pays out a lump sum if you die during the policy term.
When you’re worried about the cost of your funeral
Although prices range, a funeral may cost in the thousands. The risk of dying without money set aside to cover these costs is that family (and friends) may have to shoulder the financial weight of the funeral during an already challenging time.
But having life insurance in place means that a lump sum payout could be used to help cover these costs. And although it may be troublesome, thinking about your funeral arrangements for the future may help you factor in costs for how much life insurance you'd need.
Thinking life insurance is something to consider later in life? Think again. In this video, we explore why life insurance isn't really about your age, but the people and responsibilities that matter most to you.
When should I get life insurance?
Transcript for video When should I get life insurance? Show more Show less
[The video opens with a split screen. The top frame has an Aviva expert and a guest sat across from each other whilst holding mugs of tea. The bottom frame has a shot of a table with 'TRUE' written on one side and 'FALSE' written on the other.]
Expert: True or false, you don’t need life insurance until you’re much older.
[The expert moves their mug into the ‘FALSE’ section, and the guest moves theirs to ‘TRUE’]
[The expert and guest look at each other, amused]
Guest: I always thought life insurance is something for much later in life.
Expert: Totally a fair guess, a lot of people think that. But life insurance isn't really about age. It's more about what's happening in your life at the moment. So term life insurance, for example, provides a lump sum if you were to pass away during the policy term. That money can help towards repaying a mortgage, or just providing financial support for the people that you leave behind.
Guest: What kinds of things are we talking about?
Expert: So things like buying a home, divorce or separation, starting a family, bereavement, or even just knowing that someone relies on you financially. Think of it as protecting the people around you, like your partner or your children and planning ahead in case you were to pass away.
Guest: Makes sense. How would I know which insurance policy is best for me to take out?
Expert: It really depends on what's going on in your life. If you've got a mortgage, or a family who depend on you financially, or you're just thinking ahead about costs down the line – those are the kinds of things that shape which type of cover might work for you.
Guest: Some of those life events I’ve actually already experienced. I own a home and I have a family, but I don’t have a life insurance policy yet.
Expert: So that's usually the point where people start thinking about it seriously.
With a mortgage, for example, there's something called decreasing term cover. It's designed to run alongside your mortgage and pays out a lump sum if you pass away during the policy term. So this can help towards repaying a mortgage, or give a bit of financial support for those left behind – especially if your income that’s keeping up with those monthly payments. It can help provide peace of mind.
Guest: Sounds reasonable. Is there anything extra I could put in place for my loved ones?
Expert: Absolutely, then it becomes more about protecting them day to day. With level term cover, for example, it will pay out a lump sum if you pass away during the policy term. So this could help with things like the mortgage, bills or general living costs, just so they’re not left trying to figure everything out financially.
There's also increasing cover, where the amount you're insured for goes up over time, usually in line with inflation. So the payout keeps pace with the rising cost of living.
It’s really about looking at what your outgoings are now, what they might be in the future, and choosing something that properly supports the people relying on you.
Guest: Are there things I should know that could affect how much I pay or how much is paid out?
Expert: Yes, absolutely. It's important to note that the cost of life insurance isn't random. It's based on you. Things like your age, your lifestyle, and your medical history all play a part. So generally, the younger and healthier you are, the cheaper it can be.
Guest: So if I wait another 10 years or get unwell, the cost could change?
Expert: Exactly. Waiting can mean it gets more expensive over time. Your lifestyle matters too, like whether you smoke or take part in high risk activities. So, if you skydive for a living, the cost may be higher.
And things like your own health background can play a part too. It's not about digging into your whole family history, it's more about getting a general picture. It's also worth knowing that if your health changes down the line, it could become harder to get cover at all - or in some cases, you might not be able to.
Guest: Sounds like it’s not entirely about if I get it, but when to.
Expert: Absolutely. Want to move your mug now?
[The guest moves their mug over to the TRUE section of the table]
Guest: Got me there!
Expert: Specific information about your exact life insurance needs are just one click away at aviva.co.uk
Life insurance
Our cover pays out a lump sum of money if you die during the policy term. The people you love could use this to keep up their standard of living when you’re gone.
What can affect the cost of life insurance?
All insurance products have factors that impact premiums.
These can include (but aren't limited to) your:
- age - this is a big one. Generally, life insurance premiums are less expensive for younger people (looking at you 20 somethings) because they're expected to live longer and less likely to be ill. So, the longer you wait to get life insurance, the more expensive it may be.
- lifestyle - how you live may impact your insurance premiums. They may look at whether you travel extensively, how much alcohol you drink and whether you use recreational drugs. Smoking is another factor insurers will consider since smokers are more likely to have smoking related health issues than non-smokers. And, as part of your lifestyle, insurers may also be curious about your hobbies. Some activities, like extreme sports, carry additional risks depending on how (and how often) they're practiced.
- medical history - insurers will likely review your medical history, past and present, for any pre-existing condition. They'll also review your family's medical history, for any inherited medical concerns.
These are some of the things you'll declare when taking out your policy. And it's important to be accurate and truthful - any inconsistencies could put at risk receiving your payout in the future.
What about inflation?
As you sit at the kitchen table, trying to balance your budget, you may have noticed your bills increasing. One factor that can affect your life insurance is inflation.
This challenge of managing your budget may continue over the years. Inflation causes the cost of living – including energy prices, fuel costs, and everyday essentials like food and clothing – to rise over time. This means that the lump sum value of your policy today might not have the same purchasing power in the future. In other words, £100,000 today may not buy as much in 2049 as it does in 2025.
With most life insurance policies, you have the option to increase your cover amount in line with inflation. This way, the lump sum amount retains its value over time. However, this may also mean that your monthly payments will increase.
Do I need to change my life insurance when I turn 50?
Whether you took out your insurance policy at a younger age or have decreasing term life insurance, you may find that your policy is ending as you near retirement age.
If your policy still has a few years to go as you turn 50, then simply carry on paying your premium.
But if you're at the end of your life insurance term and need a new policy, there are dedicated life insurance policies for over 50s. You could also take out a further term life insurance policy with Aviva before you're 78 years old.
Our over 50 life insurance is offered as 'whole of life' cover, which means it will protect you for the rest of your life rather than a set term. If you're a UK resident aged between 50 and 80, your premiums will stop after 30 years or the policy anniversary following your 90th birthday. The cover will continue with no cost to you.
Be aware that over 50 life insurance can't be taken out on a joint life basis. Depending on how long you live, you could pay more in total premiums than the total cover amount. The cover amount is fixed and inflation can reduce its value over time.
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