Finding Life Insurance At Every Age is Possible
We’re going to let you in on a life insurance industry trade secret: your age does not have to deter you from finding an affordable life insurance policy.
All-too-often, we hear individuals over the age of 30 say that they cannot find life insurance, or that they are afraid that renewing their policy will drastically increase their premiums.
We are here to debunk that myth.
You can find affordable life insurance at every age; it’s simply a matter of taking the time to understand how your needs change throughout the years.
Your Life Insurance Road Map
If you are visiting this website as a first-time policy buyer, then great! Let’s start there!
The first thing you should always do when shopping for a life insurance policy s find yourself a good agent. Luckily for you, you’ve come to the right spot! Give us a call!
The next thing you should do is sit down with your agent and explain your life insurance needs.
Everyone’s insurance needs differ based on their expenses. You want to make sure you are calculating a policy large enough cover things like your mortgage, bills and debts (include interest!) and to replace your income until your family can regain their financial footing.
Got it? Great!
Next, you’re going to want to adjust these costs for inflation, as well as factor in any additional expenses you may have. These include medical bills for yourself or a loved one or setting up an education trust for your children.
Once you and your agent have calculated these expenses, you’re well on your way to finding an insurance policy. Don’t get too excited; you’re not quite there yet.
Remember when we told you affordable insurance is available at every age? It is, but the one thing you need to do is sit down with your agent and plan how to prepare for your changing life insurance needs.
Your life insurance policy can and should be tailored over the years to reflect your financial situation.
Being aware of how your needs will change over time is equally as important as knowing how much life insurance you need right now.
For example, a large policy might make sense in your twenties, to cover your student loan debts and mortgage costs or other debts. As you age, these debts will be paid down. If you’ve paid off your mortgage or a large chunk of your loans, you should take that out of your death benefit as soon as you can.
A smaller policy means more affordable premiums. You and your agent should work to project your future expenses and come up with a plan to periodically review your policy accordingly.
Let’s take a look at how your insurance needs might change over the years so that you have a road map to prepare you for finding the most affordable policy at every age:
Life Insurance in Your 20s
This is perhaps the easiest decade to estimate insurance needs, simply because most 20-year-olds aren’t even thinking about life insurance. If it seems strange to buy life insurance so young, think about it this way: a life insurance policy can ebenfit you at any age.
Policies in your twenties may be tailored to reflect the following needs:
- Student loan debt
- Credit card debt
- Final expense needs
If you purchase a policy at this age, you can expect to pay very little; your policy size will not need to be large and you will most likely be healthy enough to earn a “Preferred” rating.
They type of policy we recommend for someone in their twenties is a shorter term life insurance policy. This is because the premiums on a whole life insurance policy are incredibly high and most twenty year olds may not find themselves in a stable enough financial position to maintain their payments.
Instead, these individuals should consider a short term life policy, just large enough to cover the aforementioned expenses.
Life Insurance in Your 30s
According to a study conducted by The National Marriage Project at the University of Virginia, the average ages at which individuals are getting married are 29 (for men) and 27 (for women). It is right around this time that you may seriously start looking into purchasing a life insurance policy as part of planning for a family.
At this age, your life insurance needs are going to be much greater than they were in your twenties.
If you get married, you may need to adjust your policy size to include income replacement to care for your loved ones if you pass. Additionally, you may still have student loans or have taken on a mortgage at this time, and will want to increase your benefit accordingly.
If you have kids in your thirties, your benefit might increase further depending on whether or not you set up a trust for their future education.
Life Insurance In Your 40s
In your forties, your life insurance is going to undergo another drastic adjustment.
It is in this decade that you want to adjust your benefit size to reflect the debts you have paid off. You may also begin thinking more strongly about retirement, and might be considering converting your term life insurance policy to a whole life insurance policy, which will build a case value. This value can be used to help fund your retirement, although we generally advise against this decision.
In your 40s, you will still be healthy enough to purchase a term life insurance policy at affordable premiums. The biggest factor to weigh when considering term life conversion is the death benefit. At this time, your insurance policy should be large enough to cover:
- Income replacement
- Medical bills
- A mortgage
- Your children’s educational needs
- Any debts that remain from your 20s and 30s
Because your benefit will increase at this time, we recommend sticking with a term life insurance policy, which will be more than sufficient to cover these needs.
If you’re in your 40’s and still wondering about rates, here are some specific articles for you to review and sample rates below.
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Life Insurance In Your 50s
Right around the age of 50, policyholders begin to undergo a shift in how they think about life insurance. In your fifties, you may think that it will become harder to buy life insurance.
It makes sense; as our bodies age, the risk for developing high risk diseases increases. This misconception is only fed by guaranteed issue life insurance companies promising to make buying insurance with no medical exam easy. At this time, you may also begin thinking more seriously about converting your term life policy.
While we recommend revisiting the size and length of your policy, we don’t recommend converting or buying a guaranteed issue life insurance policy, because your life insurance needs will actually start to decrease in your 50s.
Think about it: if you have saved enough for your retirement by this point, what else does your policy need to cover? You will still need to consider the following:
- Income replacement
- A mortgage
- A second marriage
- Medical expenses
- Final expenses
By this time, your children are fully grown and beginning their own journey toward financial independence. You have probably also paid off most of the debts you amassed in your earlier years.
If you’re turning 50 and still wondering what the costs are for life insurance at this stage of your life, please see some sample rates below and articles for you to review.
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Life Insurance In Your 60s
The final decade we want to talk about is your 60s. In your 60s, life insurance shopping is a breeze.
You might still want a policy large enough to replace your income or to help your spouse or partner through retirement, as well as medical or final expenses.
The one thing we want to warn against in this decade is the assumption that you cannot pass a medical exam for a life insurance policy. While you may have to pay more if you are high risk, you are almost always still better off with a term life insurance policy in this decade than you are with a whole or guaranteed issue life insurance policy.
Life Insurance Coverage Should Evolve To Fit Your Needs
Life insurance is not as complicated as you may think. The most daunting part of finding a policy to suit you is sitting down and calculating your expenses.
If you over buy your policy, you may end up paying too much for insurance you won’t use, but the best parts that you are not stuck with your term life insurance policy. If you feel as though your policy is too large or you are paying too much, sit down with a reputable agent.
You should always speak to a financial adviser or agent about your concerns, and don’t be afraid to ask questions! A good agent works for you and with you, to find you the best policy possible.
Feel free to look around the blog, do some research, fill out an instant quote form or give us a call today. Protecting your family and loved ones is important to us. No matter your age or situation, we would love to work with you to help you find the best life insurance policy possible.