Why term insurance is cheapest the day you stop putting it off

Term insurance is the rare purchase where procrastination has a precise, calculable price. Not a vague 'you should have done it sooner', an actual number you pay every year for the rest of the policy.

You lock in your age

Term premiums are set at purchase and stay level for the whole term. Buy at 28 and you pay a 28-year-old's rate at 45, at 55, right through. Buy the same cover at 38 and you pay a 38-year-old's rate for the entire term. It's the same policy, you simply paid more for waiting.

You also lock in your health

This is the part people underestimate. Premiums are priced on your health at application. A decade of ordinary life can bring raised blood pressure, a borderline sugar reading, a few extra kilos, each of which can attract a loading, an exclusion, or occasionally a decline. The healthy version of you is the cheapest customer you will ever be.

The cover you need doesn't wait either

• A home loan taken at 32 is a liability your family carries from day one.
• A child born at 34 needs providing for whether or not the policy exists.
• Cover bought after the responsibility arrives leaves a gap in between, and that gap is precisely the risk.

The honest counterpoint

If nobody depends on your income, no dependents, no shared loans, you may genuinely not need term cover yet. Buying insurance you don't need isn't clever either. The moment to act is when someone would struggle financially if your income stopped. For most people that moment arrives well before they get around to it.

Our cover calculator will give you a realistic number in about a minute, and a free call will pressure-test it against your actual situation.

This guide is general information to help you understand your options, not financial or tax advice. Please consider your own circumstances and consult a qualified professional where needed.