Buying life insurance as soon as you can helps you pay less in the long run. Getting life insurance at a younger age should result in lower premiums, which could save you a considerable amount of money. Buying a life insurance policy should especially be a priority for those with family and financial responsibilities.
Best Age for Applying for Life Insurance
Younger, healthier people pay less for life insurance. As you age or develop health conditions, you become more of a risk to insure, leading insurance companies to charge higher rates.
You’ll pay more for insurance at 60 compared to a 40-year-old. However, a 30-year-old is likely to pay even less. Basically, when it comes to getting life insurance, the earlier the better for most people. You may eventually end up with chronic conditions, which can affect your ability to get low insurance rates.
Here’s a quick look at how your insurance needs may vary based on your age and various life circumstances.
Should People Get Life Insurance in Their 20s?
Life insurance isn’t something that people in their 20s and 30s tend to prioritize. Yet, young adults are also likely to have debt. In some cases, this debt may become the responsibility of loved ones following the loss of a family member.
Individuals in their twenties considering life insurance may want to explore term life policies. These options often come with lower rates but with a set term length.
At the end of the term, you may be able to convert the policy into a permanent one with a lower premium compared to obtaining a new policy at the same age.
Should Couples Get Life Insurance?
Life insurance can help cover expenses should a spouse or partner pass away. This may include funeral expenses and any debts.
Additionally, if you currently support the household with your income, you may want to ensure that your partner can keep their current lifestyle. A life insurance policy may help your partner get by after losing access to your income. You could also obtain a large enough policy to pay off your mortgage or any other major financial burdens.
Should Parents Get Life Insurance?
Many people start considering getting life insurance after they have their first child. You may want to ensure that your children are cared for should you pass away, especially if you’re the primary income earner in your household.
To ensure that you obtain enough coverage, estimate how much your family would need to continue without your income and support for a minimum number of years, such as until your children reach adulthood. You may also want to consider the cost of higher education.
If you don’t have a spouse but have children, you may be tempted to name them as beneficiaries. However, it’s often easier to select the individual who would care for the children or your estate as the beneficiary.
Many insurance companies also offer child life insurance riders. These riders provide add-on insurance that would provide a death benefit for the passing of a covered child.
Should Seniors Get Life Insurance?
Seniors can still qualify for life insurance. In fact, seniors without life insurance are likely to leave behind financial responsibilities, including burial expenses.
Those who avoided getting insurance during their middle-aged years may now be considering the importance of an insurance policy. While you have fewer options available as you age, you can still find permanent life insurance policies that cover your needs, such as final expense insurance.
Choosing the Right Policy Based on Age Group
Depending on your age, you may find that certain types of policies better fit your needs and the potential financial state of your loved ones should you pass away.
Adults 30 and Under
Life insurance is most affordable when you’re young and free of health issues, especially if you’re a non-smoker. If you don’t have any dependents, you can get a term life policy that simply covers your funeral wishes and any debts that could be passed to a loved one.
If you have children, you may prefer a policy that covers your income for the number of years it takes to raise your children. You may also find that a whole life policy offers greater peace of mind, as it locks in coverage from a young age and lasts your entire life.
Adults Aged 30 to 65
As you approach your middle years, a permanent life insurance policy is likely to provide the financial security you need. Whole life and universal life policies can cover your debts and the financial well-being of any loved ones that you may leave behind.
Adults 65 and Older
Seniors have fewer life insurance plans to choose from. For example, term life insurance isn’t typically available to seniors.
However, final expense life insurance, which is also sometimes called funeral expense life insurance, is intended for seniors. Some of these options also skip a medical exam requirement.
At this stage of life, you may not need to financially care for your children. Yet, you may still want to take care of any debts and ensure that your spouse is left financially stable.
How to Choose the Right Length for Term Life
If you choose to get term life insurance, you get to choose from a variety of term lengths. The options may range from 10 years to 30 years. However, the available term limits depend on your age. Older adults may not be able to get a 30-year term life policy.
When getting a term life policy, it’s common to choose a term length that covers your remaining working years. You may also want to consider the age of your children.
For example, if you have children under 5, a 20-year or 30-year term life policy can cover the remaining child-rearing years and beyond. However, a 10-year policy would expire before they finish high school.
The bottom line is that the best time to buy life insurance is as soon as you can. Getting insurance at a younger age should result in lower costs and more options, including term life policies. Remember to consider how much financial support your dependents will need should you pass away to select a suitable death benefit and other life insurance options.
