Life Insurance Needs by Age
October 7, 2021
October 7, 2021: Buying life insurance is one of those things you don't think about when you're young. It doesn't seem like much of a priority when you assume you've got lots of time. However, these policies are much more affordable when you are younger, with the best rates available in your twenties or thirties. High-quality policies are still possible in your later years, but they will generally cost more. Here is what you need to know about the coverage you need as you age.
Life Insurance in your 20s & 30s
When you are in your twenties and thirties, you are probably healthier than you will be later in your life, without the health concerns that could one day lead to you becoming uninsurable. If you're single without any financial dependents, life insurance may not be a necessity yet; but for others, it's the perfect time to put this safety net in place. If you are asking, "How much life insurance do I need," many experts recommend purchasing a policy worth 5-10 times your annual income. Still, it should be tailored to your situation, including the following issues:
- If you're in debt for student loans, credit cards, auto purchase, and personal loans
- If you've bought a house
- If you're married
- If you have children or other dependents
Life Insurance in Your 40s
If you have not obtained an insurance policy by the time you've reached your 40s, or if your policy is small, this is the time to adjust before your rates get too high. You are likely still in good health in your forties, so rates will still be fairly low. Buying or increasing insurance coverage at this point of your life will help your beneficiaries pay for the following:
- Earnings gaps, from a lower coverage amount when your salary was lower
- Mortgage expenses
- Medical costs or other final life expenses
- Expenses for children, such as childcare, schooling, and extracurriculars
- Bills and unexpected financial needs
Life Insurance in Your 50s & 60s
Once you reach your fifties and sixties, you may be asking yourself, "Do I need more life insurance as I age?" It's true that insurance costs more the older you are. However, if you have financial dependents who need your income, the peace of mind that comes with necessary coverage is well worth the expense. Here are some tips for finding affordable, high-quality policies at this point in your life:
- Choose a term length of 10 or 20 years
- Tailor the coverage to your financial needs to ensure you are not over-insuring yourself
Regardless of your age, if you have people in your life who depend on you for your income, you can benefit from a life insurance policy.
About 1891 Financial Life
At1891 Financial Life, we pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our new MYGA to support your financial needs no matter what stage of life you’re in. For more information, contact us at (855) 804-7424.