When Should I Get Life Insurance?

At what age should you get life insurance? Is 25 years old too early? What about 35 or 40? This is a confusing topic, and choosing between whole life and term life can make that choice even more difficult. Lets lay out some facts that will help you be better equipped to make this potentially life-changing financial decision.

20-Years Old?

It sounds strange for a 20-year-old to worry about life insurance, right? Actually, no. Insurance premiums are lower the younger you are. That means if you get a whole life insurance plan as early as is practical, you might get a better return on investment, especially as the cash value of the whole life plan is allowed to mature.

That said, term life insurance would be ill-advised at this age. As most terms cap out at 30-years, a 20-year-old buying term life would likely lose their premiums when the term expired.

35-Years Old?

The optimal time to choose between a whole life insurance plan and a term plan might be around age 35. At present, US life expectancy is about 79-years old. That means a 30-year term life plan could leave a middle-aged person well-prepared for their passing without dipping too deeply into the family budget.

Even Older?

Past age 50, a term life plan may be the better choice. Statistically, it’s more likely that a 30-year term plan will be used at that age. Additionally, after age 50, the cash value of a whole life plan likely won’t have enough time to grow and generate an efficient return on investment.

What’s the Right Time?

Choosing the right time to get life insurance largely depends on your circumstances. Do you have the job security afford to pay higher premiums throughout your entire life? Or would you rather invest that money over the long term, resulting in a more fulfilling retirement? It’s a big choice and one that you should discuss with your insurance administrator.

If you have questions about life insurance, we can help. If you’d like to schedule an appointment with an experienced Atlanta insurance administrator from Insurance Specialists, Inc., don’t hesitate to send us an email or call (888) 451-0883.