The value of life insurance

Life is too short to wait; get covered now to save money and gain a better peace of mind. 

If the ongoing events of 2020 have taught us one thing, it’s that life as we know it can be turned upside down at a moment’s notice. One of the sad realities of life is that we all have to die one day or another.  For the young, this morbid reality might seem to be way off in the distant future but it is important that it is safeguarded against nevertheless because we never know what is around the corner.

Figures suggest that approximately 65% of 18-29 year olds don’t have any life cover in place at time of writing. (1)

There are a number of arguments which can be made to brush aside these figures. Individuals within this demographic may not have a mortgage or any financial dependents but life insurance policies can last for over 40 years, during which time many of the above are likely to come into play. If a young adult does already have commitments like a mortgage or children, then Life Insurance should be something that is strongly considered.

The average cost of dying has risen by 130% over the past 15 years and now resides at £9,49 (2).

This figure doesn’t even take into account any liabilities or debts that may left behind following your passing. As a first point of call you should consider who would have to cover the cost for your funeral? What would your partner do if you were no longer around to pay the mortgage or help raise your children? These are all points that should be taken into account when deciding on whether the time is right to take out life assurance.

So why should you take out cover now?

The cost of life insurance is calculated at the point of application. Any changes, including to your health, during the term of the policy won’t increase your premiums. Therefore, taking out a policy whilst you’re young allows you to benefit from low-cost premiums, even as your lifestyle and responsibilities change. Locking in the cost of premiums at a younger age also means that you’ll avoid paying higher premiums if you were to fall ill in later life. With regards to any age, it is better to act sooner rather than later.

How much will cover cost?

Cost is determined by a number of factors such as your age, your health, whether you’re a smoker or not, as well as much cover you want and for how long. Figures taken from suggest that the average monthly premium for an in individual between 16-29 years old is £18.11 per month. Those who fall in the next bracket, 30-39 years old pay on average £25.90 per month. (3) The cost per month increases as you get older because there is a greater likelihood that you will pass away.

Did you know that company directors or those who are employed through their own limited company can pay the monthly premium through their company as opposed to out of their own personal post-tax income? This is referred to as Relevant Life Insurance.

Consider the fact that the average monthly insurance premium for a one-year-old dog costs £27.60. (4) Now add on top of that that mobile phone insurance can cost up to £15.00 per month. (5) What excuse is there to not take out cover that will benefit your loved ones immensely if you were to pass away prematurely. 

As Independent Financial Advisers, Celtic Financial are not tied to any provider. We are able to review the whole market for our clients and ensure that they receive the best cover available for the cheapest possible price which will always be suited to your budget.

How much cover do I need?

The amount of cover you will need will depend entirely on your circumstances. Working out how much cover is a needed can be tricky if done alone so again, it is best to speak to one of our team of experienced advisers, who will be able to advise you on what level of cover will be best suited towards securing your immediate and long-term finances.

If Life Insurance is something that you feel would be beneficial to you and your family, you can give us a call on 01352 390121 for a no obligation, no fee chat. We’ll be happy to help.