One of the most common questions people ask is what’s the best age to buy life insurance? Is it better to wait until you have children? Should you buy it in your 20s or 30s? Or is it something to think about only when you’re older?
In this article, we explore the best age to take out life insurance, how your age affects the cost, and what life events should trigger a review of your protection needs.
Why age matters when buying life insurance
The age at which you apply for life insurance has a significant impact on both costs. Generally, the younger and healthier you are, the cheaper your premiums will be.
Life insurance is priced based on risk, and younger applicants present less risk to insurers.
Premiums tend to rise with each passing year, especially once you enter your 40s or 50s. I
What are the benefits of buying life insurance young?
Taking out life insurance early offers several key advantages:
- Lower premiums: The younger you are, the lower your premiums are likely to be.
- Longer-term options: You can choose cover terms of 25 or 30 years.
- Guaranteed insurability: You’re more likely to be accepted without exclusions.
- Financial peace of mind: You can protect your partner or mortgage even if you don’t have children.
- Avoiding price hikes: Locking in a fixed premium now can protect you from future increases.
What’s the best age to buy life insurance?
There is no single “best” age, but here’s how life insurance fits into different life stages:
In your 20s
- Ideal if you want cheap, long-term cover
- Suitable for covering student debt, supporting a partner, or preparing for plans
- Not everyone needs it at this age, but it can be a smart move if affordability is a priority
- Opportunity to combine life insurance with critical illness or income protection
In your 30s
- A standard time to buy cover due to marriage, children, or buying a home
- You may still get relatively low premiums
- Opportunity to combine life insurance with critical illness or income protection
In your 40s
- It is still possible to get affordable cover, but prices begin to rise noticeably
- Necessary time to review any existing policies and top up if needed
- A good time to protect family income or business liabilities
In your 50s and 60s
- Premiums are higher, and potential health conditions may limit options
- Whole-of-life and over-50s plans become more relevant
- Still helpful in covering funeral costs or leaving a financial gift
Signs you should buy life insurance now
You should strongly consider buying life insurance if any of the following apply:
- You have a partner who relies on your income
- You own a home or have a mortgage
- You are planning to start a family
- You have financial dependents
- You run your own business.You want to leave a legacy or cover funeral expenses
If you’re healthy, locking in a policy sooner rather than later can save you thousands over the lifetime of the policy.
FAQs
Does life insurance get more expensive as you get older?
Yes. Premiums increase with age, especially once you pass 40. Waiting too long can result in paying significantly more for the same amount of cover.
Should I buy life insurance if I don’t have children?
You might still need cover if you have a partner, debts, a mortgage, or anyone who depends on you financially.
Can I change my policy as I get older?
You can review and adjust your policy as your life changes. Some plans offer guaranteed insurability options, allowing you to increase your cover without providing medical evidence.
Is it worth getting life insurance in your 50s?
Yes. Although it may be more expensive, life insurance can still be valuable for paying off debts, covering funeral expenses, or leaving a legacy.
Conclusion
The best time to buy life insurance is usually as early as possible, especially if you have financial responsibilities or dependents. Whether you are in your 20s, 30s, or 40s, securing cover now can provide long-term peace of mind at a more affordable price. If you’re unsure about your options, speak to a protection adviser who can help you choose the right policy for your age and life stage.
