TheBlueDragon Posted May 15, 2011 Share Posted May 15, 2011 Hi people, I just wondered at what age you would start thinking about getting life insurance. Do you have to be a certain age? I'm only 24 but I want it to be so that should anything happen I know my family be ok Link to comment Share on other sites More sharing options...
HeadingNorth Posted May 15, 2011 Share Posted May 15, 2011 You should have life insurance if you have children - it means that in the event of your death, their mother will have money to replace the loss of your income and/or your ability to take care of them. Also, the younger you are when you take it out, the less it will cost. If by "family" you mean that you do have children, I would strongly advise you to take out some form of life insurance, and I'd recommend you talk to someone who knows more about life insurance than I do, to ensure you get a product suitable to your circumstances. Link to comment Share on other sites More sharing options...
TheBlueDragon Posted May 15, 2011 Author Share Posted May 15, 2011 No I don't have children I would just like to know that once I'm gone my younger sister and nephew are sorted Link to comment Share on other sites More sharing options...
Winemaster Posted May 15, 2011 Share Posted May 15, 2011 Also be aware that alot of life insurance policies also will not cover you for Terminal illness for the last 12/18 months of the policy and some also include the first 6 months, so therefore if you take out a 5 year policy you may only be fully covered for a lot less time than the policy actualy runs for. Link to comment Share on other sites More sharing options...
Lady Star Posted May 15, 2011 Share Posted May 15, 2011 Hi people, I just wondered at what age you would start thinking about getting life insurance. Do you have to be a certain age? I'm only 24 but I want it to be so that should anything happen I know my family be ok If you have a mortgage and there is someone else sharing that home with you who would struggle to pay your part if you died, then you need life insurance... It'd be nice for your kids to have when they need cash for uni or setting up their own homes in the future, should you die before their adulthood... Other than that, I wouldn't bother! I certainly don't have it, as would be a waste of cash for me... Link to comment Share on other sites More sharing options...
HeadingNorth Posted May 16, 2011 Share Posted May 16, 2011 No I don't have children I would just like to know that once I'm gone my younger sister and nephew are sorted Not many people would demand that you have a moral responsibility to provide for your sister and nephew, but certainly, if that is your wish, life insurance is very much worth having. Link to comment Share on other sites More sharing options...
alternageek Posted May 16, 2011 Share Posted May 16, 2011 Depends. Will state if under 30 you can be rated on premiums until you turn 30, with a premium reduction. If you want the money to be left to certain people, once the policy is in place you should put it under Trust You are best speaking to a Financial advisor and asking what is best for you and your current needs. Also, if looking to leave to people, speak to a lawyer that specialises in family law. A decent IFA will be able to provide you with knowledge and get the best plan for you. You dont have to get your plan through an IFA just knowledge. Once you get ANY paperwork - READ it through! Any questions speak to the insurance company and get clarity (for most ins co, reps cant give advice only facts) Link to comment Share on other sites More sharing options...
Cyclone Posted May 16, 2011 Share Posted May 16, 2011 Hi people, I just wondered at what age you would start thinking about getting life insurance. Do you have to be a certain age? I'm only 24 but I want it to be so that should anything happen I know my family be ok It's a personal thing isn't it, there's no single age that people should go and get life insurance. It was a requirement of the mortgage when we originally took it out, and I was also covered by work whilst I was a permie, so I've been covered since about the age of 23 to varying degree's. More recently we took out our own joint cover after doing a bit of research and choosing a provider. Link to comment Share on other sites More sharing options...
linzday Posted February 22, 2013 Share Posted February 22, 2013 Also be aware that alot of life insurance policies also will not cover you for Terminal illness for the last 12/18 months of the policy and some also include the first 6 months, so therefore if you take out a 5 year policy you may only be fully covered for a lot less time than the policy actualy runs for. This is true regarding the last 12/18 months of the policy with a lot of companies, but this is only the terminal illness benefit. If you were to contract a critical illness (if you have that optional cover) or die one day before you're policy expires, a claim could still be made. Terminal illness cover is usually included for free, and is designed to pay out early if you are diagnosed with a terminal illness, whereby even with current medical treatments, you are not expected to live more than a set period of time (think its usually 12 months?) so that you can enjoy the rest of your time a bit easier. Life insurance can be applied for at any age, the younger you are, the cheaper your initial premium would be. Other factors are taken into account which can greatly effect your premium such as smoker status, health, occupation, family history etc. I have never heard of a company rating you for being under 30, however they will consider the factors previously mentioned, and if they feel you are an increased risk, I.e. more likely to make a future claim, they will charge you an increased premium than what you were originally quoted or could apply exclusions, for example if you have a history of sciatica, they may say that no claims would be considered that arise from anything to do with your back. The two most common life insurance plans are level term assurance and decreasing term assurance (often referred to as mortgage protection) Level term assurance is what it says, you choose the amount of cover you need/can afford, and the cover remains at that amount for the whole term of the policy, so if you had £100k cover and claimed on the policy after one month or 10 years it would pay that amount. Decreasing term assurance is usually (but doesn't have to be) taken out to cover a mortgage, and so the amount of cover decreases roughly in line with your mortgage. So you have cover of say £100k at the beginning of your policy, if you claim after a year you might get an payout of say £99k (that is purely a guess for example purposes!) if you claim after 20 years you might only get £20k (again an example figure!!) This is just a very basic rough guide as to some info about how life insurance works, you would need to speak to a qualified adviser as to the best products suitable to what you want to achieve with your policy, and they should also be able to sort out the trust for you. It is definately worth getting though, provides a lot of peace of mind for your loved ones and is something that a lot of people don't realise the importance of, so good on you for thinking about it! Link to comment Share on other sites More sharing options...
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