Life Insurance by Age – How Much to Buy At Each Stage of Your Life

by Jeff Rose

life insurance by ageTerm life insurance is an important investment that can protect your family’s assets at any stage of your life.

Whether you are single or married, a part of a large family or a small one, purchasing insurance is a responsible step that everyone should take so that loved ones will be provided for.

Depending on your age though will also determine how much you need, how long you need it for, is term or a guaranteed policy the best.

Below is a quick guide on the different ages and what you should consider when buying life insurance.  I’ve also included links to relative articles that go more in depth on each age bracket. Here’s what you need to know to get cheap life insurance at any age.

Let’s first start with Gen Y crew……

Life Insurance for Your 20s

In your 20s, life insurance is inexpensive and easy to get. At this age, you can expect an enormous number of term life options at affordable prices. By getting life insurance at this early stage, you can protect a young and growing family from financial hardships and do so inexpensively. This is a great decision to make at this young age rather than waiting until you are older, possilbly have health issues and have to look into the option of life insurance without medical exam, which is defaulted to a higher rate because of the poor health you may have at this age. Starting young and healthy is the way to go!

If you don’t have children or large assets to protect, choose a policy of at least four times your annual income. If you do have children, the number of children, your spouse’s income and your other debts should all factor into the amount of insurance you purchase.

Read more on buying Term Life Insurance in Your 20’s

Life Insurance for Your 30s

In your 30s, you likely have a family and assets that need to be protected with a life insurance policy. Your income may be higher during this period, necessitating a larger policy to meet bigger financial needs. Some life insurance buyers purchase a second policy in their 30s to supplement the policy bought in their 20s.

If this is your first time to purchase term life insurance, be sure to get enough to cover your family’s needs and to pay off your home and other large debts. A general rule is to purchase at least 10 times your annual income, and in your 30s this is generally an affordable option.

Read more on buying Term Life Insurance in Your 30’s

Life Insurance for Your 40s

By your 40s, you likely have significant assets to protect. If you have not bought a life insurance policy yet, it’s important to do so before the rates rise even more in your 50s or future health conditions make it more difficult to get insurance.

Financial experts agree that even if you already have a policy in place, your 40s is a good time to sit down with your finances and reevaluate your insurance needs. You may find that you need a supplemental policy to take care of new responsibilities that weren’t present in your 30s.

Read more on buying Term Life Insurance in Your 40’s

Life Insurance for Your 50s

As you enter your 50s, you will have different insurance needs than you did in years past. You may have grown children who can provide for themselves. Your house may be paid off, and you may not need to purchase insurance that will pay off a mortgage. However, there are still many expenses that a term life policy can assist your family with paying. A term policy can be used to fund a trust, to provide your family with an inheritance and to provide a liquid asset for your estate. Insurance will be more expensive at this age, and that expense will go up if you have significant health problems. However, even at the increased rates, term life insurance is still an affordable insurance option.

Read more on buying Term Life Insurance in Your 50’s

Life Insurance for Your 60s

In your 60s, you may not have dependents who need your income, but term life insurance can still provide a level of support for your loved ones in the future. If you don’t have enough coverage by the time you reach your 60s, purchasing a policy as soon as possible is vital. If you wait until age 65, you will have far fewer insurance options. Some companies simply won’t sell a policy to anyone 65 or older. At this stage of life, you can expect policies to be more expensive, but they will still cost significantly less than whole life policies.

Read more information for those over 60 years-old needing life insurance.

Life Insurance For Seniors

Even seniors may need life insurance coverage. With advances in medicine and health care facilities, people are living much longer. Life insurance for seniors does not have to bust your budget, however. It’s still possible to get affordable life insurance as a senior citizen.

Read more articles on life insurance for seniors.