Do students need life insurance?
In most cases, no — life insurance is primarily designed to protect financial dependants. If no one relies on your income (parents, a partner, children), life insurance has limited purpose. However, there are some situations where it's worth considering:
- You have a child or partner who depends on you financially
- You've taken out a joint loan or mortgage that would fall to a co-borrower if you died
- You want to lock in low rates now before health conditions develop
- You're running a small business alongside studying
Do student loans need life insurance?
No — UK student loans (from Student Finance England/Wales/Scotland) are written off if the borrower dies. They do not pass to parents, partners, or the estate.
How much does life insurance cost for students?
Life insurance for a healthy 20-year-old non-smoker is extremely cheap — potentially £5–£8/month for £100,000 of level term cover over 25 years. This is the cheapest you'll ever be able to buy life insurance.
The case for buying now
Even if you don't strictly need life insurance as a student, buying now locks in a premium based on your current age and health. If you develop health conditions in later years, your existing policy remains at the original rate — and any new policies would cost more or face exclusions.
Critical illness cover for students
Critical illness cover may be more relevant for students than life insurance — a serious diagnosis during your studies could derail your career and create long-term financial hardship. Premiums at 18–22 are very low.
Frequently Asked Questions
Only if someone financially depends on you. For most students, critical illness cover is more relevant — a serious diagnosis could have long-term financial consequences even without dependants.
If you're supporting a child through university financially and your income contributes to their living costs, your own life insurance should factor in that financial commitment.