When I first started in the financial services industry when I was 24 none of my friends wanted to talk to me about life insurance. Most of them didn’t see the point and they had too many other financial goals on their mind. Buying new cars, buying big screen TVs, paying off debt.
Now that they are in their 30’s and their family has become more of a priority life insurance has taken on a more serious role. If you’re in the beginning stages of starting a family, life insurance in your 30s is vital. There’s no more just worrying about you. Now you have to worry about a spouse and possibly young children.
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If you feel like I feel turning 30 is not the end of the road. So it’s never too late to think about life insurance planning.
How Much Does Life Insurance Cost When You’re 30?
One of the common misconceptions when it comes to life insurance is people think it costs too much and that is not the case. Life insurance in your 30s doesn’t cost that much either.
Just out of curiosity, I ran a quote for $1 million for term life insurance coverage and the lowest rate is only $695 for the entire year.
So that’s $1 million of coverage to make sure that your family is taken care of and it costs you as little as $57.91 per month. That’s it and that’s for $1 million of coverage. If you’re a 30-year-old female, the cost is going to be that much less. The important thing is to not wait any longer for your term life insurance. The younger that you are, the cheaper your monthly premiums are going to be.
Additionally, you never know what tomorrow is going to bring (cheery, right?) if something were to happen to you, how would your family be able to recover? Not only will buying life insurance today let you know that your family will be covered, but it can also save you money in the long run.
Life Insurance In Your 30s Will Not Break You
The point is life insurance in your 30s does not cost a lot. You will not break the bank by making sure that your family is taken care of should something happen to you. You can’t put a price tag on the peace of mind that this policy will bring to you. There is nothing like knowing that your family will have the funds they need if anything tragic were to happen to you.
If you’re not sure exactly how much you need check out my other post Term Life Insurance for a 30-Year-Old, as I take you through my process where I decide how much term life coverage I need for my family.
If you want a quick answer on how much you should get, look at your total debt and how much you would leave behind. Add all of that up and that is a good starting point. Also, include your annual salary.
Saving Money on Your Monthly Premiums
Nobody wants to spend more money than they have to, especially when it comes to life insurance. There are a few ways that you can easily save money on your monthly premiums.
But don’t automatically go with the same company because you already have purchased an insurance product from them. Another way to ensure that you have the best rates possible is to shop around with several companies before you decide on one. Because each company is different, they are all going to look at applicants differently. Your rates could be significantly different depending on the insurance company.
Second, if you want to save money, it might be time to hit the gym. One of the biggest factors in determining your insurance rates (aside from age, which you, unfortunately, can’t change) is your health. After you apply for the insurance policy, the company will send out a nurse or paramedic to do a health exam. The results from the exam can save you hundreds of dollars, or cause your premiums to go through the roof.
A healthy diet, regular exercise, and quitting smoking are some of the best ways that you can save money on your insurance. Any applicant who is overweight or obese could expect their monthly premiums to double. If you’re a smoker, your premiums are going to be doubled or even tripled, regardless of the rest of your health. Before you apply for a life insurance policy, spend a couple of months losing a few extra pounds and kicking the cigarettes. Your waistline and wallet with thank you.
The Importance of Life Insurance
An adequate life insurance policy is one of the best things you can purchase for yourself and your family. Every year we hear stories of families that lost a loved one unexpectedly. On top of all of the emotional strain they are feeling, they are left with thousands of dollars of debt because of mortgage payments, student loans, credit card bills, and funeral expenses that they can’t pay for.
Life insurance provides a safety net for your family that you hope to never use. Most people put off life insurance because they don’t want to think about their own death, but that is one of the worst mistakes that you can make.
The Bottom Line – Life Insurance in Your 30’s
Entering your 30s brings a shift in priorities, with family taking center stage. Life insurance, often neglected in one’s twenties, becomes crucial. Cost concerns shouldn’t deter you; coverage for a million dollars can cost as little as $695 annually. Don’t wait; younger applicants secure lower premiums.
Remember, unforeseen tragedies underscore the significance of life insurance, ensuring your family’s financial security. Prioritize your family’s future with a policy tailored to your debt and income, securing peace of mind. Consider healthier habits to reduce premiums and explore multi-policy discounts while shopping for the best rates to protect your loved ones.