You might think that getting adequate life insurance is a one-and-done thing.
You get a cheap policy with a long-term when you’re young, and you no longer have to worry about it.
Well, if you think this way, I’m sorry to say that you’re wrong.
As you progress through life and get older, your needs change, and hopefully, your ability to satisfy those needs on your own change too.
So, let’s chat about what happens when you’re 30, 50 and 70. What type and how much life insurance will you need, and how much is it going to cost you?
Life Insurance at Age 30
By the time you hit age 30, you’ve started experiencing some of the biggest changes in your life.
Unless you’re studying for an advanced degree, you’ve probably already completed your education and started your career.
…and if you haven’t already done so, the New York Times suggests that you’re likely going to buy your first home in the next two to three years.
If you haven’t already guessed, age 30 is usually the time in your life when you’re going to need the most life insurance coverage.
Why You Should Get Life Insurance in Your 30s
You still have 30 to 35 years left before you retire, so you’ll want to provide some income replacement for your family if you should die prematurely.
You may want to get enough coverage to pay off your mortgage and other debt so your spouse doesn’t have to worry about anything.
…and if you have kids, you may want to help them pay for their future higher education or job training.
You may laugh about that one, but considering how ridiculously fast college costs are growing, they won’t be if they have to foot the bill on their own.
Anyway, at age 30, you’ll want to get as much coverage as you need and can afford, and you’ll want a term life policy that lasts at least 20 to 30 years.
You wanna hear the best news? Life insurance is much cheaper when you’re young, so locking in low rates for that long will do wonders for your budget later on.
Here’s what you can expect to pay:
Term Life Insurance Quotes at 30-39 Years Old
|30 Year Old Male||$14.35||$24.64||$43.15||$79.64|
|31 Year Old Male||$23.55||$23.55||$43.31||$79.64|
|32 Year Old Male||$14.96||$23.76||$43.31||$80.72|
|33 Year Old Male||$15.22||$23.76||$43.75||$81.37|
|34 Year Old Male||$15.57||$24.18||$44.19||$82.25|
|35 Year Old Male||$15.84||$25.01||$45.94||$84.92|
|36 Year Old Male||$16.72||$26.26||$48.56||$89.73|
|37 Year Old Male||$17.69||$27.93||$52.06||$97.31|
|38 Year Old Male||$18.83||$29.80||$56.37||105.74|
|39 Year Old Male||$19.86||$32.30||$61.69||$115.38|
(Life Insurance Preferred Quotes based on healthy, male, non-smoker for 30 Year Guaranteed Level Term, as of 3/13/17, subject to change)
Life Insurance at Age 50
At this point, you’ve probably got 10 to 15 years left in your working career.
You’ve either paid off your mortgage early, or you have about 10 years left, and your kids will be leaving the nest soon.
If you went the traditional route and got married young, paid down your debts, and saved for retirement, you probably need less life insurance coverage now, and a shorter term.
Think a 10 to 15-year term policy to keep you covered until you can access retirement savings.
For people 65 and older, the divorce rate has roughly tripled since 1990. But the breaking up of these marriages can have a profound impact on retirement savings forcing people to readjust their plans. A ‘gray divorce’ can devastate your retirement plans. Here’s how., Washington Post
Traditional Life Insurance Isn’t Always Best
However, life doesn’t always follow this progression.
If you are now remarried, or perhaps you weren’t so prudent about paying down your mortgage or putting money away, you may still have 20 or more years of working career ahead of you. In this case, a 20-year term may be more appropriate for you.
You might also be the type of person who plans to leave your spouse, children, or favorite charity, a generous gift no matter when you stop working or pass away. You’ll be better off with a lifetime guaranteed policy if that’s the case.
But here comes the wrench.
Medical Issues and Life Insurance
Entering your 50s and beyond may bring some surprising changes to your body, especially if you were one who could eat what you wanted, shunned exercise and always remained thin.
Hormonal and physiological changes occur as we age and after 50, you will need to adjust your approach as your resting metabolic rate decreases, Prevention reports. This Is The 1 Reason You Can’t Lose Weight After Age 50, CheatSheet.com
This is why it’s so important to work with an independent life insurance agent.
An independent agent can help you find insurers that are more likely to offer reasonable rates to people with your specific health condition.
To give you an idea of what to expect, here are some sample quotes for someone at age 50:
Term Life Insurance Quotes at 50-59 Years Old
|50 Year Old Male||$26.23||$48.87||$89.87||$171.18|
|51 Year Old Male||$28.47||$53.42||$98.56||$187.57|
|52 Year Old Male||$30.96||$58.33||$106.85||$203.73|
|53 Year Old Male||$33.71||$63.87||$117.99||$225.23|
|54 Year Old Male||$36.64||$69.42||$131.26||$251.17|
|55 Year Old Male||$39.82||$76.88||$144.37||$275.63|
|56 Year Old Male||$43.69||$84.81||$160.17||$306.59|
|57 Year Old Male||$47.90||$93.61||$175.01||$335.40|
|58 Year Old Male||$57.53||$114.24||$217.15||$416.67|
|59 Year Old Male||$63.12||$126.30||$240.80||$461.39|
(Life Insurance Preferred Quotes based on healthy, male, non-smoker for 20 Year Guaranteed Level Term, as of 3/13/17, subject to change)
Life Insurance at Age 70
By this time, you’re probably a few years into a well-deserved retirement. Your mortgage is paid off, and your kids have started careers and families of their own.
And you guessed it, your need for life insurance is probably low to non-existent.
Some people, however, still like to have coverage at this age, either to protect their nest egg for their spouse or to leave an inheritance to their kids.
This means that you get to decide how much coverage you require based wants rather than needs.
Are You Too Old for Term Life Insurance?
You can typically still get term life insurance at age 70, but the only coverage that’s available is usually a 10-year term.
If you’re planning on living longer than that, you’ll probably want permanent coverage that’s likely going to outlive you rather than vice versa.
No, I’m not recommending whole life insurance here.
Whole life may be a good idea for some people, but it’s prohibitively expensive, and it’ll take 10 to 20 years to get any real benefit out of it.
…definitely not something you want to bank on at age 70.
Instead, I like to recommend another type of permanent life insurance called guaranteed universal life, and here’s why:
- It’s much cheaper than whole life — we’re talking half the cost, on average
- You don’t have the cash value build-up like whole life, but it still covers til death
- You’ll get guaranteed level premiums for life
- Your death benefit is guaranteed never to decrease
Of course, I still have clients at this age who prefer term insurance, so it’s important to consider what works best for you.
Here’s a cost comparison for term insurance:
Term Life Insurance Quotes at 70-75 Years Old
|70 Year Old Male||$96.74||$212.50||$413.69|
|71 Year Old Male||$105.10||$235.34||$455.45|
|72 Year Old Male||$114.93||$262.52||$506.34|
|73 Year Old Male||$126.15||$293.63||$566.81|
|74 Year Old Male||$138.50||$327.56||$636.84|
|75 Year Old Male||$151.29||$363.01||$712.97*|
These quotes above are based on a healthy male, with a”Preferred Non-Smoker” Rating. Better rates are available for healthier individuals, as well as lower ratings and higher premiums for individuals who cannot qualify for preferred.
Quotes are for a 10-year term life insurance policy as of 3/13/17 and are subject to change.
Work with an independent agent to nail down a strategy
As I mentioned before, your life insurance needs will change over time.
That’s not a guess or a simple prediction.
If you have no plan, you may end up with a lot more coverage than you need in your later years, or you may be woefully under-protected.
Independent agents vs captive agents
So, it’s important to work with someone who can not only help you develop a strategy for your life insurance, but will also help you find rates that fit your budget.
A captive insurance agent — someone who works for and sells insurance from just one company — can’t do that for you.
…thereby increasing your chances of getting an inexpensive policy regardless of your age and situation.
Remember, if you choose us you’re a customer for life – not just until you sign on the dotted line.