If you’re wondering when to buy life insurance, here’s an easy rule of thumb: The fact that you’re asking the question probably means the answer could be “right now.” Let us explain.
The point of life insurance is to help financially protect your dependents (such as a spouse or partner, kids and other loved ones) if the worst should happen. And by “the worst,” we mean your untimely demise. So if you’re wondering when to buy life insurance, that means you probably have dependents or you expect to have some soon (maybe you plan on settling down or starting a family). And that, in turn, means you should probably get life insurance now.
You get affordable term life insurance to help protect your loved ones in case of an unexpected death – which is, by definition, an event that can’t be predicted. So it doesn’t make much sense to wait to get protection. You wouldn’t put off getting car insurance because you feel like nothing’s going to happen this year, and the purchase of life insurance follows the same logic.
How to get affordable life insurance rates
Various factors affect the price of life insurance, but one constant is that usually the younger you are, the cheaper it is. The monthly price you’ll pay for a particular amount of coverage goes up with every year that you age, and the age-based increases grow larger as you grow older – the price jump between ages 35-40 is more than three times the increase between ages 30 and 35 (click here for a chart of life insurance rates by age.) Buying life insurance is the opposite of buying a TV – there is no Black Friday to wait for; all that happens is usually the longer you wait, the more expensive it gets.
One of the main things that affects the price of life insurance is the age of the person taking out the policy. As your age increases, so does the price you’ll pay to buy a policy.
Another factor that impacts your life insurance rates is what type of policy you purchase. Term life insurance, which is what Haven Life sells, is one of the simplest and most affordable types of coverage often appeals to many young families looking for coverage. For the sake of this piece, we’ll focus on term life insurance quotes.
Sample 20-year term life insurance rates by age for people in excellent health
Don’t have time to price out how term life insurance quotes rise exponentially with age? View the chart below, which illustrates the price of a 20-year Haven Term policy for men and women in excellent health at various ages. It’s clear that shopping early for term life insurance can save you money.
| Age | Coverage | ||||
|---|---|---|---|---|---|
| $250,000 | $500,000 | $750,000 | $1,000,000 | ||
| 20 | Male | $16.77 | $22.05 | $30.07 | $38.09 |
| Female | $14.38 | $19.03 | $25.55 | $32.07 | |
| 25 | Male | $16.99 | $22.48 | $30.72 | $38.96 |
| Female | $14.58 | $19.03 | $25.55 | $32.07 | |
| 30 | Male | $17.43 | $22.48 | $30.72 | $38.96 |
| Female | $14.99 | $19.46 | $26.19 | $32.92 | |
| 35 | Male | $18.06 | $23.34 | $32.01 | $40.67 |
| Female | $15.37 | $20.32 | $27.49 | $34.65 | |
| 40 | Male | $24.12 | $32.38 | $45.57 | $58.77 |
| Female | $19.91 | $28.07 | $39.11 | $50.15 | |
| 45 | Male | $38.16 | $56.07 | $81.10 | $106.13 |
| Female | $29.64 | $43.15 | $61.72 | $80.30 | |
| 50 | Male | $56.49 | $84.06 | $123.09 | $162.12 |
| Female | $41.23 | $61.67 | $89.50 | $117.33 | |
| 55 | Male | $88.05 | $135.31 | $199.96 | $264.62 |
| Female | $65.68 | $98.27 | $144.41 | $190.54 | |
| 60 | Male | $152.80 | $230.91 | $343.37 | $455.82 |
| Female | $103.91 | $156.84 | $232.26 | $307.68 |
Source: Haven Life
Finding the right time to buy life insurance for you
If you are single, childless and expect to remain that way, and you don’t have any debts that would be passed on to your family if you died, then you probably don’t need to buy life insurance right now.
For the rest of us, it’s time to go looking for a personalized quote. If you need life insurance right now, why wait?
Michael Davis is a freelance writer and editor who has covered everything from fashion and music to parenting, work, and finance. He has been a chef, restaurateur and record label owner. Opinions are his own.
