Can I buy life insurance at age 30?
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UPDATED: Dec 21, 2011
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If you are in your thirties and considering purchasing life insurance, now is the best time to make the deal. If you are in relatively good health and a non-smoker, you may qualify for major discounts and excellent premium rates.
Purchasing life insurance at 30 is in all likelihood a very good idea. After all, you are probably married and starting a family by now and along with securing a career and home, life insurance is a great investment. By the time most people reach 30 years of age, they are much more serious minded and are focused on protecting themselves in the event of an unexpected tragedy.
Most life insurance companies judge candidates and issue their policies based on age, current health condition and other factors. If you exercise regularly, watch your diet, and keep your stress level down, chances are your medical history is void of irregularities or major issues. This will help you to select the best type of life insurance policy that will shield your family from the financial impact that may occur if something terrible happens to you.
How do I know how much life insurance to buy?
One method you can use is to calculate your annual budget. Your budget consists of day-to-day expenses, regular household costs, car maintenance, food, and utility bills; add your annual salary. You should arrive at a number that represents the amount of money your family will need if you are no longer able to provide for them.
You should multiply your calculated budget approximately five to ten times. This is a good way to gauge your coverage amount. If your annual monthly budget is approximately $30,000, you should look for coverage ranging from $150,000 to $300,000.
If your spouse works full time and contributes to the annual budget, you should include this in your totals. Also, add an additional sum for each child depending on their needs.
Remember, you will leave a large financial burden on your surviving family members. The mortgage, outstanding debts, medical bills, and funeral costs will all need to be paid. Making sure you have adequate coverage will give your family the support they need to move their lives forward.
What kinds of policies are available to me?
At age 30, you qualify for every type of life insurance policy around. There are five types you may be eligible for:
- Term life
- Whole life
- Variable life
- Universal life
- Universal variable life
Term life insurance is perhaps the most simple and straightforward type of insurance. These plans are also the most cost-effective. Term life insurance policies cannot be cashed in and are generally available in short twelve month polices. The purpose of a term life insurance policy is to pay one large payment to your beneficiary in the event of your death. The amount of the policy dictates the death benefit payment. Renewal options vary with term life policies so be sure to read your contract thoroughly.
Whole life insurance policies will gain cash value along with protecting your family. They are long-term policies that can cover you for your entire lifetime. The cash gained from your premium payments can be placed in accounts to help your money grow. Your insurance company will invest your dollars and manage the funds carefully to ensure a good return. Additionally, your beneficiary can be paid a death benefit payment. Your premiums are usually fixed rather than unstable and as long as you meet the requirements of your policy, cannot increase.
Variable life insurance policies are a bit more flexible. They have the same benefits as whole life insurance plans, but they differ in that they allow you to take loans from your policy.
Universal life insurance policies are even more interesting than variable life insurance plans. You still have death benefit options and your insurance gains cash value. You also have the opportunity to take loans or completely withdraw your money from the policy.
Universal variable life insurance policies can be the most risky types of plan. They offer everything that whole, variable, and universal policies offer, but often you must be in complete command of every transaction that occurs . Your insurance agency does not manage your funds or accounts. How well your life insurance performs is completely your responsibility.
How much will life insurance cost per month?
The amount of your premium depends on the type of plan you select and the coverage limits. Since term life insurance policies cost the least, you can expect to pay approximately $850 to $1,000 annually. Whole life, variable and universal life insurance policies will cost you more but when you consider the benefits, it may be worth it to you to pay extra.
You also have control over what you will pay for life insurance. You may be more comfortable securing the basic term life policy to get your feet wet, so to speak. Term life policies are available in 12-month increments so you don’t have to commit yourself. If after a few years, you find that you want to upgrade to whole or universal life, you will have the experience under your belt and should have no problems making your selections.
Life insurance for the 30-year old is very easy to find. Nevertheless, since the process is more than likely very new, you should use caution. Check the facts before signing anything, always compare multiple quotes and and don’t forget about understanding how the the renewal process in your senior years.
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