Life insurance should be secured early

A recent life insurance study has led to suggestions that individuals in the UK should look into securing a life insurance policy earlier in life rather than later, in order to effectively invest in and plan for the future.

According to James Harrison, chief executive of Insurancewide.com, consumers who begin saving earlier will enjoy the security of life insurance. According the research undertaken by the insurer comparison service, men aged between 35 and 42 are far more likely to apply for life insurance than individuals in their early twenties. Mr Harrison suggested that the early twenties was a good age to begin setting aside funds as people with debts or mortgages, and those who are self-employed are excellent candidates for setting up a life insurance policy.

Mr Harrison commented: "Life insurance is certainly not a top priority for most twenty-somethings, but when you stop and look at the cost you'll see that it pays to start buying a policy as early as possible where there is a genuine need."

However, choosing life insurance at such a young age can be daunting. After all, if neither death nor illness seems to be facing you anytime soon, how do you establish what's best to include in your life insurance policy? Whatever your age, if you're planning to purchase life insurance, it's important to be aware of the options that face you in your search.

For instance, if you choose to buy life insurance in your twenties, then it might be best to opt for investment-type life insurance, also known as a whole-of-life or endowment policy. This type of life insurance will both pay out in the event of your death and accumulate in value during your lifetime. This means that, the younger you are when you choose to take out your life insurance, the greater the value it will accrue as the years go on.

Other types of life-insurance include protection-only life insurance. This is more popular with older life insurance buyers, particularly those looking for protection in times of illness, as it covers you only for a specified amount of time. However, if your death occurs after this period has lapsed, your family will receive no payments from your life insurance.

The study conducted by Insurancewide.com also revealed that men in the 40s and 50s were more likely to apply for life insurance than women.

Andrew Regan is an online, freelance journalist.