When Should You Purchase Life Insurance?

The primary purpose of life insurance is to replace the future income of a primary breadwinner. The two groups most likely to need it are middle-aged couples saving for retirement and parents of minor children.

When Should You Purchase Life Insurance?

There's really no pre-determined age when it suddenly becomes necessary to take out a life insurance policy. However, if there are people who depend on your income - especially children or a spouse - there's a major benefit to taking out a policy when you're young.

When you take out a policy in your 20s or 30s, the provider takes into account that you're paying premiums for a number of years when, statistically, there's relatively little risk that they'll have to pay out.

Unfortunately, that risk goes up a little with each passing year. It stands to reason that younger policyholders can lock in lower premiums than the aged.


  • Peace of mind that your survivors are provided for
  • Provides financial protection for your dependents after your death or in the event that you become terminally ill
  • Can provide cover in the event of a serious illness
  • Regulations protect your consumer rights, e.g. set complaints procedure
  • Can provide fast sum of money for your survivors after death
  • Tax-free pay-out options available


  • Can be costly, especially if you suffer from bad health or are considered 'high-risk' for other reasons, e.g. a dangerous hobby
  • No need to insure your death if you have no family or other dependents
  • Range of different terms and conditions between providers
  • You could outlive your insurance term and receive no financial benefit from your premiums
  • Endowment policy will not provide you with better returns than a regular savings / investment account unless you die

No one wants to admit that they could die prematurely. But the last thing you want is to not have the proper life insurance policy in place should disaster strike.

Alex Todd Brand Manager at Its4women commented " One of the ironies of insurance in general is that it’s essential but we hope never to need it. For most people, life insurance is not really an exception to this. Its primary purpose is not to provide us with investment income, but to provide our families with income if we aren’t there. "

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