Life insurance at every age
If you're wondering when to get life insurance, there's no better time than today. Let's explore how life insurance needs may differ by age.
Life insurance is a key component of your financial plan and should grow with you. It helps ensure that those who financially depend on you are protected after you are gone. You may start with a small policy in your 20s and increase your coverage through various life stages, such as family needs, preparing for retirement or reaching financial goals. Explore why life insurance is essential for every age group, from your 20s to your 60s and beyond.
Life insurance in your 20s
When you’re a young adult, life insurance probably isn’t your top priority and you might wonder, “Do I really need life insurance?” After all, you’re probably busy trying to find a job and working to pay down your student loans. So, when should you get life insurance? Purchasing life insurance in your 20s is likely the most affordable time because you are young and healthy. Insurance companies will typically consider you as a low-risk policyholder, meaning you will likely lock in lower premiums for the lifetime of the policy.
Additionally, policies in your 20s grow over time. Although term life insurance is the more budget-friendly option, whole life insurance can build cash value to be used in the future. Choosing to invest in life insurance in your 20s can alleviate any stress to those who have co-signed on your student loans or mortgage and can provide financial support to your family.
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Life insurance in your 30s
By the time you're 30, your life circumstances may have changed, such as having children and a mortgage, making the financial protection offered by life insurance more crucial than ever. There are many reasons why life insurance is important. One significant reason is that without life insurance, your spouse could be responsible for the debt you owe in the event of your unexpected death. If you do have insurance and realize you are underinsured, don't wait until you get older to increase your coverage — rates typically rise with age.
While premiums in your 30s may be slightly higher than in your 20s, they are still relatively affordable if you’re in good health. Considering term life or whole life options now may give you more comfort by ensuring that expenses like mortgage payments, daily living expenses and college tuition are covered.
Life insurance in your 40s and 50s
When you reach your 40s and 50s, your career is likely more stable than in previous stages of life, and your children may be preparing to leave for college. If you haven’t already purchased life insurance, many people in their 40s and 50s are now ready to learn more since they have a better understanding of their financial needs. Now is a good time to reevaluate your coverage to determine whether you need higher coverage due to an increase in your income or your family’s financial needs.
Life insurance in your 60s and beyond
As you approach retirement, life insurance can help you leave a legacy for your beneficiaries. It can be a useful tool in estate planning, debts and funeral costs to ensure these expenses don’t fall on your loved ones.
While premiums are likely higher in your 60s due to your age and potential health concerns, there may be specialized policies that won’t require a full medical exam. These policies financially provide for your final arrangements or any outstanding medical bills you may have left behind.
Learn more
It's a good idea to revisit your coverage whenever you experience any significant life event that affects your finances, such as buying a home, getting married or having children. We encourage you to learn more and discuss your unique needs with your local State Farm® agent.
You can get a life insurance quote now, or give us a few details and a State Farm® agent will reach out to you.
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