If you’re asking yourself, “Am I at an appropriate age for the expense of life insurance to be necessary?” you’re not asking yourself the right question. No matter what your current age is, the question that you should be asking is, “What kind of life insurance coverage is appropriate for my age?”—as the answer to this question could potentially save you far more of your hard-earned dollars than it will cost you.
Consider this—according to a recent study conducted by LIMRA, an insurance industry research outfit, households in the United States are at an all-time low with only 44% of them carrying life insurance; 11 million of which, have children under the age of 18.
There’s no doubt that this drastic drop since 2010—where LIMRA reported that 70% of U.S. households had proper coverage—is a direct result of hard economic times weighing upon the finances of American families. Life Insurance, unfortunately, has a common reputation as being a “frivolous” expense, but it is only that until it isn’t, and once it isn’t, there’s a hindsight realization that it never was.
Being prepared for whatever life might bring preemptively will: save you money, save your family a considerable amount of financial woe, and will propel you through the stages of life with the comfort of a safety net.
AGE-DEFINED COVERAGE OPTIONS
At different stages of life there are different aspects of effective coverage to consider when deciding what kind of insurance to obtain and how much of it you need.
Coverage for Your 20’s
Strike while the iron is hot! Regardless of whether you have a new family just starting out, or think that you may have one 5 to even 10 years down the line; buying life insurance young provides you a wealth of term coverage options at prices you can’t get later—even in your 30’s!
Coverage for Your 30’s
With age comes more financial obligations—family, assets, and debt—all of which should be covered in the event of something tragic. To handle all of this, you’ll need a larger and more comprehensive term coverage policy, unless you opted for this in your 20’s. If this is your first policy, be sure to purchase at least 10 times your income to ensure all of your financial obligations are secure.
Coverage for Your 40’s
At this age, if you don’t already have Life Insurance Cover than serious consideration is needed—rates will rise considerably once you enter into your 50’s. If you do already have insurance, it is still recommended by personal-finance experts to sit down and reevaluate your current policy to allow for possible future obligations, or health conditions.
Coverage for Your 50’s
A lot will have changed in your finances at this point in your life and the coverage that you’ve had should be adjusted appropriately so that you’re not paying for what you don’t need, and can account for what has changed. For instance, you may want to have a trust for a child covered, or you may no longer need coverage for a mortgage that has already been paid off.
Regardless of your age, find out more about life insurance & get the right kind of information to make the right decision that will suit your personal needs. Readers, what do you think about your own situation, at what age did you consider taking a life insurance?