At What Age Should You Start Thinking About Life Insurance?

When life throws you unexpected curve balls, life insurance can provide peace of mind. Life insurance may be something that you never think about until life brings unplanned changes into your life. Whether that life change is positive or negative, having life insurance in place to handle the financial issues that follow can bring relief and stability back into your life. The age at which life insurance becomes a consideration will vary depending on whether or not you are married or have children; but there are some factors to consider regardless of the state of your personal life.

Age 25-35

If you are single without children, it will be easier for you to find affordable rates if you purchase term life insurance between the ages of 25-35. This life insurance term is considered the most affordable life insurance option for young people who don’t have any dependents or assets to protect. It provides coverage for a certain period of time, and upon expiration, you have the option to renew your life insurance policy with another term life insurance policy or purchase permanent life insurance.

Age 35-45

If you are married, it would be beneficial to start searching for affordable rates on term life policies around age 35. Term life is generally the most cost effective type of life insurance if you are looking for coverage during your working years but may want to look into other policies as well depending on your individual needs. If you have children, life insurance can be advantageous to ensure their future financial security.

Age 45+

If you purchase life insurance later in life, your life insurance premiums will be much more expensive than they would have been if you had purchased life insurance earlier on as a young adult (age 25-35). Purchasing life insurance after age 50 is definitely not recommended, and purchasing life insurance at any point beyond age 65 may be difficult for some people to afford.

What Life Insurance Options Are Available To Me?

Once you make the life insurance decision and purchase life insurance, it’s important to understand all of your life insurance policy options. There is life insurance for one person, whole life, universal life and variable life. It’s beneficial to understand what each type of life insurance has to offer depending on your individual needs.  

Term Life: The best affordable coverage option for younger millennials who don’t own a home or other major assets that could complicate the life insurance process. This term life policy provides protection to cover your living expenses until the policy expires. Annual cost of $500-$1,000.

Whole Life: The most popular life insurance option that provides a savings component as well as protection from the insured’s death . It is considered an investment vehicle as well as life insurance. Annual cost of $1,500-$2,500.

Universal Life: This life insurance plan can help simplify your life by combining both life and disability coverage to give you more options throughout your life. Annual cost of $1,000-$2,000

Variable Life: Designed for those with larger investments who want a policy that will grow along with their additional financial assets. These policies have higher premiums to match the greater risk factor compared to universal life or whole life policies. Annual cost of $1,500-$3,000.

In conclusion, life insurance is always a good idea regardless of your life stage. No matter what life brings to you, life insurance can provide peace of mind and protection for those who count on you. As life changes occur throughout life, life insurance will continue to play a beneficial role in your life as well as the lives of those who depend on you.