So, your jumping on google and getting ready to turn the big number 30. You’re also wondering what the best life insurance for a 30-year-old is? Well, the truth is that it depends on many variables. Most likely term life insurance will be the best life insurance for 30-year old’s but at what coverage amount and duration?
What other options do you need to consider and what will the price ultimately be for the coverage?
These are valid questions that we want to make sure to answer for all the responsible young individuals reading this blog. Just reading this post is the first step in making an informed, wise decision for your family’s financial security. Especially in the case that something happens to you down the road.
We are glad to bring you the information so let’s dive right into it.
Term Life Insurance is the Best Life Insurance for 30 Year Old’s. Males and Females. CEO’s and College Students
It doesn’t matter what your occupation or income per year is at 30 years old. Term life insurance is going to be the best plan you can choose at this age for many reasons. Here are some of the top reasons I’m referring to.
Reason #1- It does everything you need it to. It protects your family and your early money accumulation you have reached.
Reason #2- It’s cheap and you’re young enough you need to consider other options outside of cash value life insurance or whole life insurance as investment vehicles for more rapid long-term growth.
Reason #3- You can still lock up term life insurance for 30 years which is plenty of time to cover your family’s needs and financial security.
Let’s break it all down a little further, shall we?
Let’s Examine What Situation You May Be In that Justifies Needing Coverage at 30 Years Old.
At 30 years old, you most likely have either entered the workforce or have completed your college degree. Both are big-ticket items that justify purchasing life insurance. If you had a college degree and didn’t pay for it with cash, you most likely have debts that will fall on someone.
An easy term life insurance policy could help fix this issue for you and cover the debts to protect your family if something was to happen.
Mortgage Debt at 30 Years Old
You may also be in the position where you just purchased your first home. If this is the case, you have a mortgage you don’t want to leave on your family. If this is the case, term life insurance would be the best answer for you and the most affordable option.
It’s not a matter of which form of life insurance you should purchase but deciding on the correct coverage amount and duration for the policy is what ultimately places you in the driver’s seat.
What about if you’re the Bread Winner and Already Have Dependents?
This is huge because let’s face it, none of us know what may happen tomorrow and we deep down don’t want to leave our loved one’s empty handed or living with the in-laws if something did god forbid happen unexpectantly.
We understand if a budget is tight, and it’s tough to come up with the cash necessary to pay monthly premiums on a term life insurance plan, but the fact of the matter is, you don’t have a choice when you think about. Your family is counting it.
What’s the correct coverage amount to choose?
Choosing a substantial enough coverage amount now is critical while you are young and healthy. Term life insurance will never be cheaper than it is today.
Plan now and don’t force yourself into a situation where you must upgrade coverage or duration later down the road.
You never know if an unexpected illness or pre-existing medical condition will arise and you don’t want to be in a situation where life insurance is either no longer affordable or not even possible down the road.
Think of all the things that could change down the road.
Let’s Break down a few briefly.
1.) You may get promoted and further increase your income and spending habits, meaning you may even take on more debt or be even more of the breadwinner in the family.
2.) You may upgrade homes increasing your total mortgage balances
3.) You may have more children or dependents relying on you to provide in the situation that something happens to you.
All are very likely scenarios that could happen at any time and being prepared is critical.
Other Factors to Consider when Picking a Coverage Amount
You don’t always have to assume the worst-case scenario when purchasing life insurance. You can also consider the likely scenario.
Let’s assume you are the breadwinner and the wife is staying at home with the kids while you work. In the event something happened, you need to ask yourself…
Is your spouse marketable? Do they have skills and the ability to re-enter the workforce and provide an income for the family?
What’s the economy look like? Don’t Ignore Inflation folks. It will sneak up and get you. What cost a few dollars today will cost much more in 20 years. We all know this to be true so be sure not to underinsure either.
So, what’s a Good Rule of Thumb when Picking the Coverage Amount?
At Good Life Protection, we like to say a 20x Multiplier is the minimum amount of coverage you should consider if your spouse stays home or you have dependents. Almost all life insurance companies at this age will allow for a 30x multiplier which if the rates are low enough, it won’t hurt to go for it.
Let’s assume your wife stays home and you have two children. Ages, 6 and 10.
Let’s also assume you make 50,000.00 per year.
1 million dollars in coverage is a good starting point and won’t cost you nearly as much as you think at your age even on a 30-year term policy.
Go for Coverage Amount First, Not Duration
Both durations and coverage amount are critical pieces to consider when purchasing life insurance but at 30 years old, the actual coverage amount is more important. Your family needs the immediate large amount of cash to survive now more than they will when your 50. Well, hopefully that’s the case.
If you must budget one or the other, go for coverage amount first and try and take the kids to at least Age 18-24 when they can work or are possibly finishing up college. If you must sacrifice duration, consider extending the policy 7-10 years down the road or before your required to provide new evidence of insurability.
So, Do We Feel We Know the Best Life Insurance Options at 30 Years old?
The biggest thing to remember is just having coverage or researching coverage is a great start. But that’s all it is, a great start. Take it to the finish line. If you can’t afford to hit the home run on a 7-figure life insurance policy, then either adjust your budget or get the coverage you can afford comfortably.
It does you and your family no good if you end up tossing the coverage aside when the budget gets tough and trust us, you will throw it aside when the budget gets tough. We see it all the time.
Reach out to us today to discuss your unique needs for coverage. We promise we are a no pressure agency who wants to help. If you don’t want to call, no worries, use our quote form on the right to see what your rates may ultimately look like.
If you have any further questions or something to add, be sure to leave a comment below. We would love to hear from you.
Josh Martin is the founder of Good Life Protection. He began his career as a captive Agent working for New York Life Insurance Company. After continued education and designations, Josh founded Good Life Protection to provide consumers with more options and insurance that truly fits into your budget and health classification.