Life Insurance for Millennials and Why It's Important

Life Insurance for Millennials and Why it’s Important

Are you a millennial? Here’s a quick way to tell. Do you like avocado on toast, preferably smashed and overpriced? Seriously though, if you were born between 1981 and 1996, congratulations, you’re officially considered to be a millennial. Don’t tell anyone, but there’s also a secret sub-set of people called Xennials who were born between 1977 and up to 1985, who consider themselves a hybrid of those Gen X’ers and Millennials. So, Mr or Ms Millennial, here’s the all important question...

When should I think about Life Insurance?

Life insurance? Isn’t that for old folk? I’m only 33. I still don’t even own a dishwasher. Dishwasher or not, there’s a bunch of reasons when maybe getting life insurance begins to make sense.

What is the best age to buy Life Insurance

Life insurance is for old folks right? Probably not. Here’s why it may be a good idea to consider buying Life Insurance when you're young (ish)

The younger you are, there's less chance you’ll keel over anytime soon. Statistically, we mean. Insurers love that. It means they’ll get heaps of your premiums before having to pay anything out. So those premiums will be cheaper. The longer you leave it, the more you’ll pay over time.

Obviously it’s a balance. If you haven’t got any debts or dependents, then there’s nothing much to insure you against. You might be better saving. Or having fun. Proceed with enthusiasm.

Why should I get Life Insurance in my 20s, or 30s..?

Apart from it likely being as cheap as a cheap thing on national cheap day, when you’re young, we think the age thing is mostly irrelevant. A curve ball. You should look to get life insurance if you have a reason to. So for example if you have a family, buy a house, debts or you want to be sure that loved ones (human or pet) will be looked after in the event of your untimely demise. We know it’s less likely, but it does still happen. Life can be a bit shit like that.

So do I need to get life insurance if i'm buying a house

There’s no rule that you must have life insurance to get a mortgage. Indeed around 25% of house owners don’t have it. But what happens if your mortgage lasts longer than you do? Alas the mortgage doesn’t die there; those clever banks are a bit protective of their money.

Whoever you’ve left your house to will be on the hook. Selling it is one way to wipe out the debt, presuming the house hasn’t dived into negative equity. But what if they’ve been living there with you? You can’t help leaving behind broken hearts, but bequeathing the stress of finding the cash to pay the mortgage or having to sell up is a double whammy easily avoided. Talking about investments, we’ve also written an article ‘ is life insurance a good investment’.

If you’d like to read more, we’ve written a full article about the subject: Do I need Life Insurance to get a mortgage?, if you’re interested.

Settling down or ‘adulting’

But have you seen house prices? You may be thinking that’s nothing I’m going to have to worry about anytime soon. Maybe, but mortgages aren’t the only nasty debt you can rack up.

Nothing says “I love you” like getting a joint bank account. But if love’s young dream is cut short, any debts left behind are going to be settled from it. Worse still if you took out a joint loan before you popped off, or someone was a loan guarantor for you. Then they’re legally responsible for your debt.

In the UK credit card debt averages £2,238 per household. Chuck in other loans, and the average household debt is closer to £10k (excluding mortgages). Taking out enough life insurance is a sensible way to cover your debts after you’re dead.’

Should I buy life insurance if i’m starting a family

Ankle biters cost a lot of money and they never stop. The bank of Mum and Dad has never done better business. So when one parent isn’t around anymore, the funds can quickly dry up. Life insurance ensures kids carry on with their lives as normal as can be. As Kylie once said to Robbie – ‘We’re doing it for the kids’.

What percentage of millennials have life insurance

According to Legal & General, just over half (55%) of millennials with a mortgage have life insurance, compared to only 9% of those without a mortgage. So it appears that buying a house appears to be the main catalyst for millennials to buy life insurance.

How does age affect life insurance?

As we’ve briefly touched upon before, the younger you are, the less likely you are to die, statistically that is. Insurers love that, so they’re able to offer you cheaper premiums, or monthly payments for the privilege. But here’s the catch. With traditional life insurance, you pay a set fixed fee from day 1 to day 7,300 (assuming a 20 year policy length). The problem with that, is you’re massively overpaying for a large part of your term, as the risk of insuring you when you’re young and fresh is considerably less, so therefore shouldn’t your monthly premium reflect that?

That’s where DeadHappy are different. We recognised this flaw, this achilles heel and we re-invented life insurance. You pay a price based upon who you are today, not who you may become in 20 years so you’ll probably get considerably cheaper cover than you would from a traditional insurance provider.

At what age does life insurance go up?

Unfortunately, there’s no set age where your life insurance price will suddenly go up. Each year you are closer to death, you become a higher risk to insure. Statistically, human beings are more prone to falling ill with a really nasty illness and all sorts of nasty stuff, the older they are. So therefore your premiums are likely to rise with each impending year, so expect that the longer you leave it to get insurance, the more expensive it will likely be.

With this in mind, may we introduce to you the concept of near death insurance? (usually known as critical illness) This is a type of insurance that pays out, not only if you die, but if you are unfortunate enough to contract a really nasty illness. We may offer you the opportunity to take out a near death policy option if you take out life insurance with us, visit the near death insurance page if you’d like to find out more.

What about Life Insurance Premiums that don’t increase with age?

You’ll be thinking about a fixed term policy? Fix or flex is the question. You can buy life insurance that will have fixed premiums for the life of the policy. However… you’ll very likely be overpaying for your cover in the first half or so of your policy, when you didn’t need to.

The average length of a life insurance policy in the UK is between 7 and 8 years, when most people cancel and re-take out another policy that better suits their needs. Why is that? It’s simple, most traditional life insurance products don’t flex with you. They don’t allow you to change your payout or other details during the life of the policy, so in the event that life changes, you’re left with two options: continue with a policy that no longer meets your needs, or cancel it, in the knowledge that you’ve likely paid more that you needed to for those first 8 years.

Term life insurance chart by age

That’s where DeadHappy comes in. You only pay a premium cost based on who you are today, not a fixed term for the life policy, so that if you need to flex or change in the future, you know you’ve not been fleeced. If you want to read more about this, we’d highly recommend our pay-as-you-live page. Enjoy.

Leaving a legacy

Life insurance doesn’t have to be about covering debts and protecting stuff. Dying is shit enough for those you leave behind so why not invest in a little happiness for them? Here at DeadHappy we created deathwishes so you can be specific about how you want your life insurance payout to be spent. A marching mariachi band at your funeral? A full size statue of yourself for the garden? The wedding dress you’ll never see her wear. Go for your life… before it ends.

I'm sold. But how do I get life insurance?

Life insurance can be complicated and costly. If that’s your thing, you’re in luck. A bunch of companies are only too eager to make you pay too much, spend too long form filling and perplex you into staying put. It’s easier for them that way. It’s enough to put you in an early grave.

Truth is, everyone needs unique life insurance. Based on who you are today and what you really want to happen when you die and a policy that can adapt to the twists and turns of life. That’s why we created DeadHappy. We’re nice, like that.

What you’ll notice is that we’ve create a life insurance that’s really easy and really quick to buy and likely, really cheap compared to your usual suspects. With just 4 questions you can probably get covered online in around 4 minutes.

We’ve also been rated 4.9 stars out of 5 on Trust Pilot. If you’re interested in reading more about what our customers have to say (they’re a fun bunch), why not hop over to our to our reviews page for a sneaky peek?

Looking for life insurance advice?

We’re not financial advisors, but we are regulated by the FCA. Our FCA status means that whilst we can’t advise you what to buy, or which insurance is right for you, we can give you as much information as possible to make your own decisions on which product may or may not be best for you. If you’ve any questions you can always chat to our Honchos, they’re here and happy to help.

How to buy life insurance

How to Buy Life Insurance Online

Get a quote

Do I need life insurance?

Let’s start with the basics, “do I really need life insurance” you may ask yourself. You don’t need it, but you might want it, especially if you have any dependents or loved ones you’d want to look after in the event of your untimely death. You could make sure they didn’t have to worry about the mortgage, bills or funeral costs by creating a life insurance plan to cover the cost. So if you’re wondering whether life insurance is a good investment, only you can decide if peace of mind is worth a small monthly sum.

When should I get Life Insurance?

That’s a good question. We’ve covered this in a little more detail here in our blog ‘When should I think about life insurance’ but if you’re simply after a snippet, here are the main reasons people think about getting life insurance

Buying a house

Getting married

Having kids

So whenever you make financial commitments such as a house, car or other debts, or if you become a parent these are good reasons to consider buying life insurance. You might not need to buy life insurance to take out a mortgage, but if you want to make sure that your family, husband/wife and kids can continue in the lifestyle they’ve become accustomed to if you died, they could be good reasons to consider buying life insurance.

Can you purchase Life Insurance online?

Well, you can with DeadHappy. We make it really simple, with just 4 questions and you’ll probably be able to get a quote online and get covered in around 4 minutes. Other Life Insurance providers, not so much. Expect an interrogation of your health and lifestyle and maybe a doctors report before they decide if they want to insure you. Or not. At least with us, you’ll know right away if you’re accepted. Why not find out for yourself and get a life insurance quote?

What are the different types of Life Insurance?

There’s a few, but the two main ones are

Term life insurance

Term, or fixed-term life insurance does what it says on the tin. It’s an insurance plan that will pay out if you die within a fixed amount of time, usually 10 or 20 years.

Whole of Life

Whole of life plans are, again fairly self explanatory and naturally, quite a lot more expensive since the odds of you dying are well, a sure bet, unlike with a fixed term plan.

What if you don't die, but get really ill?

Critical Illness insurance, or as we call it, Near Death Insurance will pay out a sum, equal to half of your sum insured if you get ill with a very nasty illness. Near Death cover is an optional extra you may be able to add to your life insurance plan for an additional premium every month. Find out more about Near Death Insurance.

Here’s a handy chart to compare the different types of Life Insurance plans available; You can see that Life Insurance pays out if you die, whereas Critical Illness, or as we call it Near Death Insurance will also payout 50% of your sum insured, if you fall ill with a ‘really nasty illness

Life Insurance

Critical Illness - Near Death Insurance

Will pay out a fixed sum upon death
Will pay out a fixed sum if I become really ill with a ‘really nasty illness’
Will pay out if I die after initially contracting a ‘really nasty illness’

What type of Life Insurance do I need?

Hopefully, we’ve given you enough information by now that you can make this decision for yourself. And speaking seriously, we’re not regulated to give financial advice - only to share with you facts and let you make the decision for yourself. However, a good place to start when you're thinking about this is how much do you want to spend per month and how much cover do you need, or as we like to say ‘what do you want to happen when you die?’. If you’ve a limitless budget a whole of life policy could be a good option, but, if like most of us your budget is finite, then a Term Life Insurance plan could well be a great option. But that’s your decision.

How much Life Insurance do you need?

We think the question you should ask yourself is ‘What do you want to happen when you die'. Have a think, do you want to pay off the mortgage, buy your daughter a pony, send all your mates on a trip to Ibiza, or simply make sure your send off is awesome.

At DeadHappy we don’t just sell life insurance, we help people to create Deathwishes. Your Deathwish can be as simple as a cash payout or you could get really creative and start planning what you want to happen if you were to meet your untimely demise, such as an actor dressed as the grim reaper at your send off, posting a tube of exploding penis shaped glitter to your old boss, or making sure you’re buried in a compostable coffin. Make your Deathwishes, get suitable life insurance for the ones that’ll cost a lot, then share your wishes, don’t keep them a secret.

Fancy joining in the fun - why not make your own deathwish?

How much does Life Insurance cost?

How long is a piece of a string? Seriously though, the cost of your life insurance plan will depend on a few factors;

  • How much payout you want
  • How old you are
  • How healthy you are, whether you or a relative have any health conditions that may be considered a higher risk
  • How long you want your plan for, the usual durations are 10 or 20 years for fixed term plans

At DeadHappy our cover starts from as little as 61p per month for £1,000 cover. It’s very likely that we’ll be cheaper than traditional life insurance providers. That’s because you pay a fixed price for the entire length of your policy, based upon who you might become in 20 years time. So you pay far more than you should whilst you’re still young and healthy. We’re different. We base our prices on who you are right now, so you pay the right price for who you are today not who you might (or might not) become. After all, who knows who you might be in 20 years?

Want to find out how much your plan could be? Be pleasantly surprised, get a quote online today, what’s the worst that could happen?

How long should your life insurance be?

That’s a personal thing. Some of us like the reassurance of a 20 year plan, but it seems most of us disagree. After all, do you think your life will be the same in 20 years as it is today? The average length of a life insurance policy in the UK is 7 years before it is cancelled. That’s usually because the plan no longer meets your needs, and with traditional life insurance you’re unable to change it. Say hello to PAYG (pay as you go) Life Insurance, from DeadHappy. The life insurance that can flex to meet your needs now, and into the future.

Who has the best Reviews?

We don’t like to brag (perhaps) but we’re currently the owner of a 4.9 stars out of 5 with Trustpilot. If you don’t believe it, why not check it out for yourself, or enjoy our hand picked snippets over on the DeadHappy life insurance reviews page?

What does FCA regulation mean?

The FCA, or Financial Conduct Authority are the people who make sure we’re doing what we say we will. That we’re legitimate, honest and trustworthy. The FCA provide guidance and regulation for the insurance sector and make sure companies providing financial products are behaving in the correct manner to protect consumers. At DeadHappy, you can be reassured that we’re registered with the FCA, because whilst we’re light-hearted about some things, the quality of our products is something that we are Dead Serious about.