When could be the right time to consider life insurance? A guide for women

For many people, life can feel busy and demanding. When you’re juggling multiple priorities, it can be understandable that looking at long-term financial plans might not always be top of the list. The subject of life insurance, for instance, can sometimes be viewed as something to address at a later date.

This raises a common question: when should you get life insurance? It can be helpful to know that there is often no single ‘right’ time or specific age to do so. The decision to look into it is often seen as a personal one, and for many women, the thought of doing so can align with significant life events. These are often the times when financial circumstances can change, and you may find yourself thinking more about options for providing a financial safety net for your loved ones.

The aim of this guide is to walk through some of those potential moments and explore the subject in a straightforward way. At Polly, we believe in providing clear information that you might want when considering your financial future, to help you make an informed decision that feels suitable for you and your personal situation.

TL;DR: When could be a suitable time to consider life insurance?

• A Personal Consideration: There is often no universal ‘right’ answer. The timing is typically based on your individual circumstances.
• Potential Triggers: The decision to consider life insurance can be linked to major life events, such as buying a home, becoming a parent, getting married, or if another person comes to rely on you financially.
• The Aim of a Policy: A life insurance policy is designed to pay out a cash sum if the person covered passes away during the policy term. The aim of this payout is to provide a degree of financial support for loved ones.
• Workplace Cover: A ‘death in service’ benefit from an employer can be a useful part of an employee benefits package. You may want to consider checking the level of cover provided and remember that it usually ceases if you change jobs.
• A Note on Cost: The cost of a policy is calculated based on individual factors like age and health at the time of application. Applying when you are younger and in good health could result in a lower premium being offered.

What is Life Insurance?

Before exploring the ‘when’, it can be useful to clarify the ‘what’. Life insurance is a type of financial protection insurance. At its core, a life insurance policy is designed to pay out a pre-agreed cash sum if you pass away during the set term of the policy.

The aim of this payout is to help provide some financial support for your family or dependents at what could be a very difficult time. This money could then be used for any purpose, such as helping to clear a mortgage, contributing to ongoing living expenses, or assisting with future costs like education. The intention is to help reduce potential financial pressures on your family if you were no longer there.

Key Life Moments That Could Prompt a Financial Review

Life is often full of change, and as a result, financial needs can often change with it. Below are some common milestones when women in the UK may start to explore their financial protection options.

Buying a Home

Becoming a homeowner can be one of life’s significant achievements. It also often comes with a mortgage, which for many people, could be their largest financial outgoing. If you share this commitment with a partner, or if someone has acted as a guarantor, you might want to consider what could happen to that debt if you were to pass away.

A life insurance payout could be used to help your loved ones pay off or reduce the outstanding mortgage. This could provide financial support to help them stay in the family home without the potential pressure of covering the full mortgage payments alone.

Becoming a Parent

Welcoming a child can naturally shift your financial perspective. When you have a young person who is dependent on you, planning for their future can become a higher priority. For many new parents, this can be a primary trigger for thinking about financial protection.

The costs associated with raising a child can be considerable. A life insurance policy can be one tool some parents use when planning for their children’s financial future. A payout could help provide for a child’s needs as they grow up. If you are a single mother and the sole financial provider, you might find this consideration to be particularly relevant to your circumstances.

Getting Married or Entering a Civil Partnership

When you join your life with a partner, your finances can become more interconnected. You might start sharing the costs of living, saving for shared goals, or find that a lifestyle relies on two incomes.

This is another point where you might want to consider how your partner could manage financially if they no longer had your income to rely on. A policy could help to provide them with a financial cushion to help them adjust.

Supporting Other Family Members

Family structures and responsibilities can be varied. You may find that you are a primary carer or provide financial support to an ageing parent or another relative. In these situations, your income could be important to their well-being. Thinking about how their needs could be met if you were no longer around is another practical reason to explore what options may be available.

Common Questions Women Might Ask

It’s natural to have questions. Here are a few that are frequently asked.

Do I need it if I’m single with no dependents?

If nobody relies on you financially and you have no significant debts (like a mortgage) that would be passed on to someone else, you might decide that life insurance is not a priority for you at this time.

However, some single people do choose to take out a policy. Their reasons can include wanting to leave something behind for a family member or to a cause they care about, or to help cover potential funeral costs. It can be seen as a personal choice based on your individual financial situation.

“I have cover through my employer; is that not enough?”

Many companies offer a ‘death in service’ benefit. This type of policy can be a useful part of an employee benefits package.

You might want to consider checking the details of your workplace scheme to understand how much it pays out. This can help you assess if that amount would be sufficient for your family’s potential needs. It can also be useful to remember that this cover typically ends if you leave your job. A personal life insurance policy is independent of your employer and stays with you if you change roles.

“Does the cost of life insurance change as you get older?”

Typically, the price of a life insurance policy, known as the premium, is calculated based on a range of factors including your age, health, and lifestyle at the time you apply. As a general rule, applying when you are younger and in good health could mean you are offered a lower premium, which then typically remains fixed for the duration of certain types of life insurance policies, such as level term or decreasing term policies. Other policy types may have varying premiums over time.

Taking the Next Step

Thinking about life insurance can be part of your wider financial planning. The ‘right time’ to consider it can be seen as less about a specific age and more about your personal stage of life. It can involve looking at who might depend on you financially and considering how they might cope if you were no longer there.

Reviewing your options could be a proactive step toward securing a level of financial protection. If you feel now could be a suitable time to explore your options, you can find out more about the financial protection policies available through Polly.