One of the benefits of being in your thirties is you have many no exam life insurance companies to choose from.
And for many, turning 30 is often when people start to make some REAL changes in their life.
It may be when some folks begin to:
- Get serious about their career,
- Get married,
- Start a family,
- Buy a home,
- Return to school to complete one’s bachelor degree or maybe seek higher education,
Or in other words, it’s usually when people not only start thinking about what it means to be an adult but also start acting like one too! Which is why we here at IBUSA will often get calls from folks in their 30s looking to purchase life insurance for the very first time.
“Which is great!”
Because…There may not be a better time to purchase a life insurance policy.
You see, unlike someone in their 20s, you’re probably going to have a better idea about how much insurance you’re going to need (or at the very least, you’ll have a better understanding of how expensive LIFE can be).
While at the same time, most thirty year olds will be young and healthy enough to qualify for some of the best life insurance rates out there!
You’re now going to be at an age where a 30-year term life insurance policy might be long enough to provide you with complete coverage until retirement age, which is why most folks purchase a life insurance policy in the first place.
The only problem is…
That because this is probably the first time you’ve ever really begun seriously considering purchasing a life insurance policy, you probably have a lot of questions. Questions you may not feel super comfortable asking.
For this reason, we wanted to take a moment and discuss some of the most common questions we get from folks in their 30s looking to purchase a life insurance policy (for the first time) and hopefully shed some light on what you can do to improve your chances at finding the “best” life insurance policy for you.
Questions that will be addressed in this article will include:
- How much does life insurance in your thirties cost?
- How much life insurance should someone in their 30s buy?
- What “type” of life insurance should someone in their 30s buy?
- What additional benefits can life insurance offer me?
- How can I be sure that I find the best life insurance policy for me?
Now, let’s dive right in!
Life Insurance Rates Ages 30-39
The following quotes for ages 30-39 are from the best life insurance companies that we at IBUSA represent.
Getting life insurance in your thirties makes a lot of sense, and can save you quite a few cents over the long term.
Above we listed the different rates for 10, 15, 20, 25 and 30 year terms. However, you can also get up to35 and 40 year term life insurance.
Now, once you know how long of a term you need, the next thing to consider is how much coverage you should get.
How much life insurance should someone in their 30s buy?
Wondering how much coverage you need? You can use our life insurance calculator to get a better idea of how much coverage would be ideal for you.
Your total cost for years of retirement at per year is:
Assuming you retire at age , you have investing years left. Using a annual rate of return for your investments, you're expected to earn a total of .
Importantly, people in their 30s will sometimes fail to understand just how much life insurance they will need to purchase.
For this reason, we’ll usually recommend that someone first consider purchasing at least seven times (7X) their current annual income.
The reason why…
We start by advising this because just by just looking at replacing seven years of lost income, many folks will be surprised by how much insurance is right off the bat.
For example, if you earn 40,000 dollars a year, by following the rule of 7, you would need a minimum of $280,000 in coverage. Coverage that would only account for one’s lost wages for just seven years.
Which when you…
Think about it, it isn’t all that long considering you are young and in your thirties and likely have 30 more years of work ahead of you that your loved ones would lose out on if you died prematurely.
Not to mention the fact that by only using the rule of 7, we’re not going to take into account any additional needs your loved ones may need.
Additional needs such as:
- Paying off a mortgage,
- Paying off existing credit card debt,
- Paying off private student loan debts,
- Funding a child’s college fund,
Our advice is always to look at the “rule of 7” as a starting place, seeing what that amount of insurance coverage might cost and then adjusting accordingly so that at the end of the day, the amount of insurance you end up purchasing is equal to the amount of money you feel comfortable paying each month or year.
What “type” of life insurance should someone in their 30s buy?
Once an individual has figured out how “much” insurance they’re going to need, the next question they’re going to want to answer is what type of life insurance they should get. And here is where things can get a bit tricky.
It’s tricky because…
Most applicants will only be told about two options Term life insurance and Whole Life Insurance (Term vs. Whole Life Insurance), and most financial advisors are going to recommend that folks only consider term life insurance because:
- It’s typically much less expensive than whole life,
- People generally don’t need a large life insurance policy when they are older,
And the extra money that they would pay for their whole life insurance policy could be better spent/invested in other things which over 20 or 30 years could (or most likely would) yield a better return than it would buy a whole life insurance policy.
Some of these key points may be valid, there are cases where someone’s insurance need may not diminish when they are older (parents of special needs children), and situations where someone might consider purchasing a whole life insurance policy for the additional benefits these types of “cash accumulating” life insurance policies can offer (Infinite Banking).
The good news is…
That we here at IBUSA offer both term and whole life insurance and while it is true that over 90% of our clients do choose term life insurance, we here at IBUSA feel that not taking a moment to introduce this option to those looking to purchase a life insurance policy for the first time (particularly at a young age) would be doing our clients a disservice.
There is a reason why many people choose to pay significantly more for a whole life insurance policy than they would a term life insurance policy and we can assure you that it’s not because they have a passion for wasting money!
What additional benefits can life insurance offer me?
Buying life insurance in your 30s can also offer additional benefits to an insured if their careful and due their due diligence when determining “which” life insurance company they choose to work with.
This is because…
There are a lot of additional features (or riders) that one can add to a traditional term or whole life insurance policy that can be quite beneficial to an insured while they are alive.
That can be added to a life insurance policy at very affordable rates instead of purchasing them separately in a “stand-alone” policy later in life. For this reason, we want to mention a few of the most common “living benefit” riders offered and briefly describe what they are and how they may be beneficial to you and your family.
Optional living benefits may include:
Disability income rider.
A disability income rider is an add-on available on some insurance policies that would allow the insured to receive a monthly payment if one becomes injured and cannot work for some time (possibly permanent).
Terminal Illness rider.
A terminal illness rider is an add-on that is available on some term or whole life insurance policies that will allow an insured to access some of their “death benefit” funds while still alive and battling their disease. Qualifying medical conditions will vary but will usually require one to be diagnosed with some terminal illness. In cases like these, the insruance company will likely not act until it is assumed that the insurance is not likely to live beyond six to twelve months.
Critical Illness rider.
A critical Illness rider would allow a living insured to collect a portion of their life insurance policy to pay for unexpected medical expenses that may arise due to a medical emergency in which one is expected to survive. Examples of such emergencies may include suffering from a heart attack or a stroke, being diagnosed with cancer. In some cases, severe injuries may also qualify.
A Chronic illness rider.
A chronic illness rider will provide many of the same benefits as a critical care rider, only in this situation, the qualifying event that would allow you to receive your benefit would be different in that this rider is designed only to “kick in” when someone is suffering from a “chronic” illness which is unlikely to be cured or cause one to die soon.
Now the really tricky part…
For most 30 years olds, is that when it comes time to consider whether or not one of these “additional options” might be worth it or not, it’s difficult to imagine oneself as getting old and needing any of these benefits later in life. Especially if you’re really healthy now and have never experienced any kind of “health scare”.
For this reason…
We’ll usually recommend that they take a look at their family members and see if any of them would have benefited from owning a living benefit in their lives and then see if the additional cost of adding a living benefit to your policy sense.
How can I improve my chances of buying the best life insurance policy for me?
Here at IBUSA, we feel that the best way to improve your chances of finding the “right” life insurance policy for you is to keep doing what you’re doing. Which is taking your time, doing your research, and when the time is right, reach out to an agent who is going to take their time helping you find the “best” policy for you.
“An agent like one of those working here at IBUSA!”