Life Insurance Recommendations by Age

Consider life insurance as an investment in your future as well as that of your family’s. A life insurance policy is a way to provide money to your beneficiaries when you die in exchange for the premiums paid during your lifetime.

When should you purchase a life insurance policy? Two of the key factors that insurers take into consideration when determining eligibility and cost are your age and your health.

Generally speaking, the best rates are when you’re in your 20’s or 30’s because the insurer is taking less of a risk insuring a younger individual who is in good health.

However, high-quality yet affordable life insurance coverage is obtainable across a variety of age ranges. When it comes to life insurance recommendations, we have some suggestions for individuals in each age group.

What Matters Most?

Life insurance recommendations by age are just that – recommendations. There are some general rules of thumb for purchasing life insurance at different stages in your life. However, any time is a good time to buy life insurance if you can afford it.

Your 20’s are the best time to buy affordable term life insurance. These types of policies offer coverage over a specific period of time with a lower premium payment at a low monthly rate. The best form of permanent insurance is purchasing a whole life policy.

Once in your 30’s, purchasing life insurance becomes more important because this is the decade of big life changes — getting married, having children, becoming a homeowner. Time to consider buying life insurance or increasing your current coverage.

If you’re approaching your 40’s and are uninsured or underinsured, schedule time to look at your life insurance needs before the rates get high. Age is a factor to insurers, even if you are in excellent or very good health. Options include purchasing a term policy, adding on another term policy or the best form of permanent insurance is to purchase a whole life policy.

This type of permanent life insurance has a cash value component together with death benefits that could offer another way to save for your retirement. The cash value of your policy can be put into investment vehicles to increase your wealth for a more financially secure retirement. The caveat? The premiums are higher.

By the time you reach your 50’s and 60’s, it’s time to reassess your life insurance needs to ensure that both your financial concerns and beneficiaries are adequately protected.

Don’t have a policy yet? Consider the following:

  • Life insurance premiums tend to increase as you get older
  • Many policies require a medical exam and/or a comprehensive survey about your medical history including pre-existing conditions and whether you’re a smoker.

Are You Over or Underpaying?

Purchasing life insurance is all about providing a safety net for you and your family at any stage in your life. However, circumstances change over time, and you may be overpaying for life insurance you no longer need or not have enough coverage for your current needs.

At Stratus Financial Partners, we offer an independent life insurance policy review service to ensure that your insurance portfolio is addressing your current needs.

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