25. 40. 55. At what age do you need life insurance?
You become a legal adult at age 18, are allowed to sip alcohol at 21 and can run for U.S. president at 35. While these life milestones are well known, you might be hazy on a few others. Take, for example, the age when you buy your first life insurance policy.
OK, so “life insurance” might not have the same panache as “legal drinking age.” But of the two, only life insurance has the ability to provide significant financial advantages for individuals and families at a vast range of ages.
In your 20s
When you’re young, you’re more likely to be healthy, without major health concerns and chronic illnesses. Because insurance companies assume less risk to cover you, your 20s are the easiest, most affordable time to buy life insurance and lock in low long-term rates.
You may need life insurance in your 20s if:
- You have a spouse, child(ren) or other financial dependents.
- You have a mortgage.
- You’re a stay-at-home parent.
- A family member or friend has co-signed your debts, such as student loans.
- You want to be sure to take care of your own funeral, burial and other final expenses.
In your 30s
Life insurance becomes a crucial part of your financial plan in your 30s. Your responsibilities are growing, and with good health on your side, you can choose from a wide range of affordable life insurance options.
You may need life insurance in your 30s if:
- You have a spouse, child(ren) or other financial dependents.
- You have a mortgage.
- Your income is needed to cover regular household expenses.
- You’re a stay-at-home parent.
- A family member or friend has co-signed your debts, such as student loans.
- You want to be sure to take care of your own funeral, burial and other final expenses.
- You haven’t saved as much for retirement as you’d like.
In your 40s
Your 40s are the ideal time to take stock of your life insurance status. If you have too little coverage—or none at all!—now is the time to make adjustments. Check your total benefits, including any employer-sponsored group coverage, to make sure your needs are fully met.
You may need life insurance in your 40s if:
- You have only a minimal amount of group life insurance through your workplace.
- You have life insurance, but the total benefit amount is less than 7–10 times your annual income.
- Your spouse wishes you had more life insurance protection.
- You have a spouse, child(ren) or other financial dependents.
- You have a mortgage.
- Your income is needed to cover regular household expenses.
- You’re a stay-at-home parent.
- A family member or friend has co-signed your debts, such as student loans.
- You want to be sure to take care of your own funeral, burial and other final expenses.
- You haven’t saved as much for retirement as you’d like.
In your 50s
If you wait until you’re in your 50s to buy life insurance, you’ll pay higher premiums. The reason is simple: Your mortality rate is naturally higher as you age, and life insurers assume more risk to cover you. Still, life insurance may cost less in your 50s than you expect—and it likewise can add great value, comfort and peace of mind to your financial portfolio.
You may need life insurance in your 50s if:
- Your spouse wishes you had more life insurance protection.
- You have financial dependents.
- You have a mortgage or other debts.
- Your income is needed to cover regular household expenses.
- You want to be sure to take care of your own funeral, burial and other final expenses.
- You haven’t saved as much for retirement as you’d like.
- You want to provide an inheritance to loved ones or a legacy gift to your favorite causes.
In your 60s
You can get life insurance in your 60s, but the annual rates likely will be higher now. Again, as mortality rates rises, life insurers assume more risk to issue coverage. Even so, you have options to add life insurance to your financial portfolio.
You may need life insurance in your 60s if:
- Your spouse wishes you had more life insurance protection.
- You don’t want someone else to have to be responsible for your debts.
- Your income is needed to cover regular household expenses.
- You want to be sure to take care of your own funeral, burial, and other final expenses.
- You haven’t saved as much for retirement as you’d like.
- You want to provide an inheritance to your loved ones or a gift to your favorite causes.
Financial protection and peace of mind—at every age
If you’re taking time today to read and learn about life insurance, you already understand that life is full of risks. Take the next step to protect yourself and the ones you love with life insurance.
Now is a great time to take a look at life insurance, whether you’re 23 or 67. A Washington National product specialist can listen to your concerns, answer your questions and present solutions to meet your needs. Click here to connect.