How Much Does Life Insurance Cost? A Simple Guide for First Time Buyers and Young Adults

One of the most common questions we hear from first time buyers and young adults is very simple. How much does life insurance cost? People imagine it is expensive or complicated, but the truth is usually the complete opposite. Life insurance can cost far less than most expect, especially when you take it out early.

Below is a clear guide that explains how life insurance costs are calculated, what affects your price and what you can expect to pay.

Life insurance costs less when you are young and healthy

The two biggest things that influence the price of life insurance are your age and your health. This is why life insurance for young adults is often very affordable. Insurers see you as low risk, which means they offer much lower premiums.

Once you lock in that price, it can stay fixed for the whole term. Even as you get older, your monthly cost does not increase.

If you start early, you simply secure the lowest possible price for the future.

Typical life insurance costs for young adults

Every person is different, but here are common real world examples of what young adults often pay.

• A healthy person in their twenties may pay from as little as £5 to £12 per month for basic cover.
• A healthy person in their early thirties may pay around £8 to £18 per month.
• A couple buying their first home often secure joint cover from around £10 to £20 per month depending on the type of policy and level of protection.

These are only guide figures, but they show how inexpensive life insurance can be when you arrange it early in life.

What affects the price of life insurance?

Here are the main factors insurers look at when calculating your monthly cost.

Your age

Younger applicants get the lowest prices. The cost rises gradually as you get older.

Your health

Existing medical conditions can increase your premium. Being a non smoker often reduces the price dramatically.

Your lifestyle

Smoking, vaping, alcohol use and high risk hobbies can influence your premium.

The amount of cover

A higher payout amount will increase the cost. For example, a policy covering a £300,000 mortgage will cost more than a £100,000 policy.

The length of the policy

A longer term can add a small increase, but still remains affordable for most young adults.

The type of policy

Decreasing term (often used for mortgages) is usually cheaper than level term, which stays the same throughout the policy.

Does life insurance need to cover the whole mortgage?

Not always. Many first time buyers choose a decreasing term policy that reduces in line with the mortgage balance. This keeps the price as low as possible while still protecting the home.

Others prefer level term cover for extra peace of mind. This gives a fixed lump sum, which can also support family costs, childcare or long term planning.

Your choice of cover is personal, but both options can be very affordable.

Why taking out life insurance early saves you money

The price you secure today can be the price you keep for the entire term. If you wait five or ten years, the exact same policy will cost more simply because you are older.

Young adults often save thousands over the lifetime of their policy by setting it up early. It is one of the easiest financial wins you can make.

How to find out your exact life insurance cost

The most accurate way to find your personal cost is through a quick chat with us at Turtle Mortgages. We check the whole market, explain your options in simple terms and match the right level of protection to your lifestyle and budget.

Most people are surprised by just how low their quote comes back, especially if they are in their twenties or early thirties.