No Matter Your Age, When is the Best Time to Get Life Insurance?

Maybe your young and healthy with no fears in the world? No matter how we’re doing from a health or financial perspective, we all need insurance. The younger you are when you buy life insurance, the better, but no matter the age, you’re never too early or too late. Maybe that’s why we’ve all been advised to buy insurance at some point in our life. Why? Insurance acts as a safety net that financially protects you and your family when your chips are down. So when is the best time to get life Insurance?

Buying Life Insurance in Your 20s

Our 20s are the best time to buy affordable term life insurance coverage. At a younger age, you'll qualify for lower premiums. And as you get older, you could develop health problems that make insurance more expensive or even disqualify you from purchasing a plan. Generally, when you’re younger and healthier, you pose less risk to an insurer, which is why you’re offered the most affordable rates.

Proceeds Could Help Beneficiaries Pay:

• A mortgage or housing payments that your partner couldn’t make without your financial contribution

• Other cosigned debts like a private student loan, which could be left to your family to pay off

• Education and childcare expenses for children

• Final expenses

If you’re in your 20s and single with no financial dependents, life insurance may not be something you need to allocate funds toward yet. Remember that life insurance is not a one-time purchase. You should revisit your coverage needs when you have more kids, take on more debt, income increase, or any other life stages which have a financial impact. If you only need a small policy now, you may want to consider purchasing more coverage as your lifestyle changes.

Buying Life Insurance in Your 30s

By the time you hit your 30s, life insurance becomes more important than ever. From a statistical point of view, you’re more likely to have more responsibilities; married, own a house, have a few kids, drive a couple cars, and more bills to pay. With good health likely (hopefully) still on your side, your 30s are one of the best times to assess your life insurance needs to get a good life insurance rate. Even if you purchased a small policy in your 20s or get life insurance coverage through your employer, it’s likely time to determine if you need more.

Proceeds Could Help Beneficiaries Pay:

• A mortgage that your partner couldn’t pay off without your financial contribution

• Protect a stay-at-home mom or dad who solely relies on your income

• Day-to-day childcare expenses, along with future ones like extracurricular activities and college

• Serve as a financial cushion to keep your family from tapping into savings to cover the bills

• Medical bills or other final expenses

Many experts suggest buying a policy that’s at least five to 10 times your annual income. The recommendation can go as high as 15 times your income if you have a partner, children and other liquid assets.

Buying Life Insurance in Your 40s

Age matters to insurers, and you want to make sure you find an insurance provider with affordable life insurance options that align with your individual needs. If you’re uninsured or under-insured, your 40s are the time to adjust your life insurance needs before rates get high.

Fortunately, Americans are living longer, and your 40s are still a time when you might be in excellent or very good physical health, therefore, coverage can still be very affordable. If life insurance seems too expensive, try tweaking your policy details. Choosing a policy with a shorter term or a lower level of coverage can help you save money without preventing you from buying the coverage you need.

Proceeds Could Help Beneficiaries Pay:

• The remainder of a mortgage that your partner couldn’t pay off without your financial contribution

• Make up for a gap in coverage because of increased earnings and a lower amount of coverage from when you were bringing home a smaller salary

• Protect a stay-at-home mom or dad who solely relies on your income

• Day-to-day childcare expenses, along with future child care expenses like extracurricular activities and college

• Serve as a financial cushion to keep your family from tapping into savings to cover the bills

• Medical bills or other final expenses

Choosing a policy with a shorter term or a lower level of coverage can make a significant impact on saving money while still getting ample coverage.

Buying Life Insurance in Your 50s & 60s

There’s no simple way to put this, but buying life insurance in your 50s and 60s will cost more. That said, if you have assets and financial dependents who rely on your income, you shouldn’t bypass coverage. Research shows that most Americans significantly overestimate how much life insurance will cost, and we’re pretty sure coverage in your 50s would qualify as one of those scenarios.

Even into your 60s, it’s not too late to buy life insurance. The main difference between life insurance in your 60s and everything before that point is that you likely won’t be able to buy a policy that has a term length over 20 years. Regardless, make sure to experiment with a few different scenarios before you settle on one to meet your needs. Slightly changing the term length or coverage amount could result in a significant drop in pricing.

While not inexpensive, if it’s providing peace of mind and necessary coverage, it’s probably worth it.

Life Insurance When You Need It

Putting age aside, if you have people who rely on your income, there’s a good chance your family could benefit from the protection of a life insurance policy. Be proactive and lock in an affordable rate. Be prepared for the unexpected. Get a free quote or compare policies by speaking with one of our insurance consultants. It’s our job to seek out the best coverage from the best providers so we can guarantee you’re paying the best price every year.