You might not be thinking about buying life insurance in your 30s, but your 30s can be the best time to buy. There are an increasing number of reasons to protect your family as you age. Many people are getting married, buying houses, and raising families. Below you will find information on how to save money, avoid medical exams, and the difference between term and permanent life insurance. You will also find links to rates for specific ages in your 30s.
To see life insurance rates right now, use the Instant Quotes tool on your left (top if you’re on mobile). You can also call 858-703-6178 to speak with an agent.
When Do You Need Life Insurance in your 30s?
The primary reasons people buy life insurance in their 30s are to protect their children and their spouse. Protecting your spouse often means different things for different people at this stage in life as well. For some it might be their widow/widower continuing to live in the home they bought together using the money from the life insurance policy. For others it might be making sure their children aren’t burdened with student loan debt.
How to Save Money on Life Insurance in your 30s
The good thing about purchasing in life insurance in your 30s is that rates are still pretty low. The odds of dying in your 30s are pretty slim. Most people are still healthy. The average age of death in the United States for men is 75 and women is 81 according to a 2012 study by the Center for Disease Control.
The younger you purchase, the more affordable it will be. Rates start increasing quickly in your 30s, usually around 8% a year. Although it will depend on the type of policy you are looking at.
The best thing you can do to keep your rates down is not smoke. Even if you get life insurance now with smoker rates, companies will often change you to non-smoker once you have quit for 12 months.
The second best thing you can do is to stay as healthy as possible. Your weight in relation to your height (or BMI) will play a large part of the rating class you receive.
Other strategies for lowering the cost of life insurance in your 30s is to purchase term life insurance rather than universal or permanent. Term life insurance lasts of a set number of years (the term) which can range from 5 to 30 years. The rates are lower partly because it’s a simple product. The other part is permanent life insurance will last until you pass as long as you keep up with your premiums.
Term Life Insurance Rates by Age in Your 30s
While the reasons you need life insurance in your 30s will vary widely on circumstance, we delve into more detail at each age. In each link you will find tables of term life insurance rates for both men and women. We ran the average rates for 10, 20, and 30 year terms for $100k, $250k, $500k, and $1 million in benefits.
You can use the Instant Quotes tool on your left (top on mobile) to see rates for your age, gender and health class. If you don’t know your health class, start with “preferred” which means you are a normal, healthy person.
Permanent Life Insurance at 30
Oftentimes permanent life insurance can be a good option for people in their 30s. If you are maxing out your Roth IRA and 401(k) most permanent life insurance have an additional cash accumulation feature. If you start in your 30s, this will have decades to accumulate and work as another retirement vehicle for you. Life insurance provides the additional features of eliminating stock market risk and taxes from your retirement income.
Keep in mind permanent life insurance is more expensive than term insurance. There are additional benefits like never needing to renew coverage and tax free cash accumulation. But in the end the decision of extra benefits and higher cost vs. simple policy and lower price will be up to you and your family.
Life Insurance at 30 Without Medical Exams
There is a company which will offer life insurance free of medical exams under $500,000 of death benefit as long as the insured is under age 60 at the time of application. Our favorite part of this company is they keep their rates at about the average of comparable products that do require medical exams. So while this company may not have the absolute cheapest options, they certainly are the most convenient.
The only reason we aren’t naming the company here is because insurance companies can discontinue products at any time. We don’t want to say something then have the company change their minds. If you hate needles or are too busy to schedule time for an exam, please give us a call at 858-703-6178 and we can tell you if this option is still available.
If you have medical history that resulted in a past decline or an illness which precludes you from getting traditional coverage now, there are guaranteed issue life insurance options available. These usually have what the industry calls “graded benefits.” Meaning the person whom the insurance covers needs to survive 2 to 3 years with the policy in force before the company will pay out any claim (unless death is accidental which is paid out immediately).
How Return of Premium Works
Another feature that can be a smart financial decision in the right situations is a policy with the Return of Premium rider. You pay more upfront for the policy. But should you reach the end of the term (whether it be 10 years or 30 years) you get every penny of the premium you paid back.
Many people use a Return of Premium policy as a savings account. If you are paying a $1,000 annual premium for 30 years; imagine receiving a check for $30,000 at the end of the term.
How an Independent Agent can get You the Best Rates
There are two types of insurance agents who can assist you with life insurance, captive agents and independent agents. Captive agents only represent one company. They might have several products to choose from, but they are all with the same company. If that company gives you a poor rating, you have no other options.
Independent agents are not bound to any one company. They work with the companies they choose to represent. Which means they do the shopping for you. They work alongside you to determine which few companies would be the best fit for you and your family. This means the companies compete against each other to give you the best rates. Since they offer the same rates to each independent agent, you are assured the lowest prices no matter where you go.
How Abrams Insurance Can Help You Get Affordable Life Insurance in Your 30s
At Abrams Insurance, we work with over 70 A+ rated companies. We have helped men and women of all ages find affordable piece of mind. We shop the market and come back with the best companies for your situation. Sometimes life insurance companies rate higher than we think is fair in our experience. Instead of pushing you to accept the offer, we promise to find another company who is more reasonable.
We believe that every family situation is unique. Yet there will be similarities within parts of a situation that means experience can go a long way. With our experience helping hundreds of families across the United States with their life insurance choices, as well as access to dozens of A+ rated companies, our agents can find you a fitting policy which your family can easily afford.
Get started by using our Instant Quotes tool on your left (top if you’re on mobile). To find rates and information unique to a different age range, go here. Speak with one of our agents at 858-703-6178 to get started today. We have agents available to help answer any questions.