What Age Should You Buy Life Insurance?

It’s never too early to start thinking about the future.

No one wants to think about life insurance, especially people in their 20s and 30s that tend not to think about end-of-life scenarios. If you’re a bit older, life insurance is just a part of the process of aging, but when’s the right time to find your policy?

In this post, we’re going to look at how to choose life insurance by age. It doesn’t matter how old you are, being informed about life insurance can help you decide on a policy that works for you. Read on and get some insight on when it makes sense for you to buy into a life insurance policy.

The 20s and 30s

When you’re in your 20s and 30s, chances are, you’re not really thinking about life insurance. However, it’s important to note that life insurance policy premiums are greatly affected by your age and health, so the younger and healthier you are, the cheaper premiums will be.

At this age, you can purchase a 20-year term life insurance policy and pay extremely affordable rates. If you’ve got a spouse or a young child, then you’ll be covered should anything tragic happen to you. When your policy expires, you can choose to renew it or convert it into a permanent policy when you’re older and are able to afford more expensive premiums.

Even if you’re a young single person, you can look into a policy with life insurance living benefits. These benefits allow you to use money from your life insurance policy while you’re alive, should you need to cover any unexpected medical bills or the like.

Middle Age

As you enter and go through middle age, the idea of life insurance really comes to the fore. This is when you’ll start to consider permanent life insurance rather than the term policies that you can get for cheaper when you’re younger.

Yes, they’re more expensive, but you’re then covered for your entire life under the same premiums. This ends up saving you money because when you renew or convert term policies, the premiums are likely to jump way up after the term ends.

Of course, more people are waiting until their mid-30s or 40s to purchase homes and start families, so your other expenses might dictate which type of life insurance policy you can afford. The idea here is to purchase the most life insurance that you possibly can given your financial circumstances.

The 50s and Older

If you haven’t purchased life insurance by the time you’re in your 50s or 60s, the premiums are going to work against you. Even if you’re perfectly healthy, age alone will make the premiums quite expensive. This doesn’t mean that you should avoid purchasing life insurance, however.

At this stage, however, you’ll almost certainly want to purchase permanent life insurance so that you’re locked into the same rates for the rest of your life. In addition to maintaining insurance costs, the policy will give your beneficiaries a tax-free payment should you die, which can take a huge burden off of your family. 

Deciding On Life Insurance By Age

Now that you know a bit more about how life insurance by age works, you can make a decision on how to move forward. If you can afford it, there’s no reason why you shouldn’t get life insurance when you’re young. You’ll have to pay high premiums when you’re older, either way, so you might as well take advantage of the lower costs when you’re young and healthy.

If you found this post helpful, come back again for more finance and life tips.

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