How to choose the right life insurance policy by age

When it comes to when you should get life insurance, your age and health are two of the most important factors an insurer will consider when determining eligibility and pricing.

As you can imagine, the younger and healthier you are, the more affordable a policy will be. Typically, you get the best rates in your 20s or 30s, as you might learn from a life insurance quote. That’s because an insurer is taking on less risk when insuring a young person in good health.

That said, affordable and high-quality coverage is available across a variety of age ranges. But when you need life insurance coverage, such as when you have children or other financial dependents, it’s important not to put off buying a policy to help ensure it remains affordable. Read on to learn about life insurance rates by age.

If you’re in your 20s

Your 20s are the best time to buy affordable term life insurance coverage. Generally, when you’re younger and healthier, you pose less risk to an insurer, so you’re offered the most affordable rates.

Life Insurance policies for people in their 20s typically have a lower premium payment, so you are looking at a low monthly rate, and term policies are often available for up to 30 years.

Life insurance proceeds in your 20s could help your beneficiaries pay:

• A mortgage or housing payments that your partner couldn’t make without your financial contribution
• Other cosigned debts like a private student loan, which could be left to your family to pay off
• Education and childcare expenses for children
• Final expenses

If you’re in your 30s

By the time your 30s hit, life insurance becomes more important than ever. Statistically speaking, you’re more likely to be married, own a house, have a few kids, drive a couple cars, and have plenty of bills to pay.

With so many financial responsibilities, and good health likely still on your side, your 30s are one of the best times to assess your life insurance needs to get a good life insurance rate.

Life insurance proceeds in your 30s could help your beneficiaries pay:

• A mortgage that your partner couldn’t pay off without your financial contribution
• Protect a stay-at-home mom or dad who solely relies on your income
• Day-to-day childcare expenses, along with future ones like extracurricular activities and college
• Serve as a financial cushion to keep your family from tapping into savings to cover the bills
• Medical bills or other final expenses

If you’re in your 40s

If you’re uninsured or underinsured, your 40s are the time to adjust your life insurance needs before rates get high. Age matters to insurers, and you want to make sure you find an insurance provider with affordable life insurance options that align with your individual needs.

Perhaps you have group life insurance through work, but worry it’s not enough. Or maybe you purchased a term life insurance policy in your 20s that’s soon to expire and are realizing you’d like a little more time added on to provide further financial protection. Whatever the case, Americans are living longer, and your 40s are still a time when you might be in excellent or very good physical health, therefore, coverage can still be very affordable.

Pro tip: If life insurance seems too expensive, try tweaking your policy details. Choosing a policy with a shorter term length or a lower coverage amount can help you save money without preventing you from buying the coverage you need.

Life insurance proceeds in your 40s could help your beneficiaries pay:

• The remainder of a mortgage that your partner couldn’t pay off without your financial contribution
• Make up for a gap in coverage because of increased earnings and a lower amount of coverage from when you were bringing home a smaller salary
• Protect a stay-at-home mom or dad who solely relies on your income
• Day-to-day childcare expenses, along with future child care expenses like extracurricular activities and college
• Serve as a financial cushion to keep your family from tapping into savings to cover the bills
• Medical bills or other final expenses

If you’re in your 50s

There’s no other way to put it: Buying life insurance in your 50s will cost more. That said, if you have few assets and financial dependents who rely on your income, you shouldn’t bypass coverage.

While not inexpensive, if it’s providing peace of mind and necessary coverage, it’s probably worth it.

Life insurance proceeds in your 50s could help your beneficiaries pay:

• The remainder of a mortgage that took longer to pay off than expected
• Debts or unpaid bills you wouldn’t want your partner to be left with
• Make up for a gap in coverage because of a significant increase in earnings
• Protect a non-working partner who solely relies on your income
• Serve as a legacy or financial cushion for your beneficiaries
• Medical bills or other final expenses

If you’re in your 60s

It’s not too late to buy life insurance once you’re in your 60s. Haven Life sells affordable term policies to individuals ages 18 to 65. The main difference between life insurance in your 60s and everything before then is that you likely won’t be able to buy a policy that has a term length over 20 years.

To keep costs down, and assuming you’re not putting loved ones at financial risk with this choice, it’s a good idea to stick with term lengths of 10 or 15 years. Even a shorter policy can provide a substantial financial cushion to your spouse or children.

Life insurance proceeds in your 60s could help your beneficiaries pay:

• Debts or unpaid bills you wouldn’t want your partner to be left with
• Protect a non-working partner who solely relies on your income
• Serve as a legacy or financial cushion for your beneficiaries
• Medical bills, funeral expenses or other final expenses

Buying life insurance when you need it

Putting age aside, if you have people who rely on your income, there’s a good chance your family could benefit from the protection of a life insurance policy. As you saw above, life insurance gets more expensive the older you become, so it’s important not to put off purchasing coverage when you need it if you want to be proactive and lock in an affordable rate.

By answering a few simple questions through an online calculator, you can easily estimate what the right amount of life insurance coverage is for you and get a quote for how much that coverage may cost. Now that buying life insurance is easier than ever before, you could be only a few minutes away from peace of mind.