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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.
Make a deathwishLife 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.
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)
Life insurance is fThe 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.or old folks right? Probably not. Here’s why it may be a good idea to consider buying Life Insurance when you're young (ish)
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.
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.
With our streamlined application process, you just need to answer a few health questions. It's really that easy...
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.
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.’
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’.
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.
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.
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.
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.
With our streamlined application process, you just need to answer a few health questions. It's really that easy...
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.
Want to
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.
Financial
Pay off the mortgage
Financial
Give someone a cash payout
Financial
Pay off the mortgage