Should I Get Life Insurance in My 30’s? Definitely. Here’s Why

Owning a home requires a mortgage, and monthly payments often include insurance premiums and taxes. In the event of an unexpected passing, spouses or dependents take on the mantle of paying off a mortgage. More significant life insurance policies may cover the entirety of a mortgage, while smaller ones help offset the costs of a sudden loss of income.

Many 30-year-olds have student loans, car payments, or other financial responsibilities that don’t disappear in the case of their passing. These significant debts can severely limit a family’s ability to recover from a death, so life insurance policies can wipe out leftover debts and free loved ones from these burdens.

With so many Canadian families relying on dual incomes, the death of a 30-year-old spouse can destroy years of investments and growth. Families with children especially benefit from two incomes, so the loss of one parent severely limits the financial future of their remaining loved ones. Life insurance benefits can replace a single income and ensure the safe continuance of a family’s accustomed lifestyle.

Many parents see a long future ahead with the regular ability to provide financial relief for their children. However, no one is guaranteed tomorrow, so investing in a life insurance policy allows you to set up trust funds for your children. These trust funds can help them with educational, medical, and other living expenses later in life.

Term life insurance covers a set amount of years, often between 10 and 20. Over the course of your term, you’ll pay a life insurance company a monthly premium in exchange for death benefits in the case of your passing. When a term life insurance policy expires, the payer cannot recuperate any of their payments. However, many people choose term insurance policies because they cost much less than permanent policies.

Permanent life insurance offers coverage for your entire life as long as you make payments. Because they have no set term, permanent policies cost more than term life insurance. However, many people use their permanent life insurance to fund their retirement or build their estate plans.

When choosing life insurance for a 30-year-old, many people first opt for term life insurance policies, renewing their policy or opting into a permanent one later in life. Waiting until later in life to adopt a permanent life insurance policy often results in higher premiums, not to mention the loss of payments made into an expired term life policy. 30-year-olds with children or significant debts should consider a permanent life insurance policy now to take advantage of lower premiums throughout their life. There are many moving parts to a permanent life insurance plan, be it in term or permanent policies. Learn more about the inner workings of a life insurance policy here.

Life insurance policies have lower premiums the earlier you start them. Younger people have longer life expectancies, especially women. Starting a life insurance policy in your thirties can lock in a low payment throughout your life. In addition to that, if you’re a parent in your 30’s and are considering purchasing a life insurance policy for your children, there are various ways that choosing that option can act as an investment vehicle.

Life insurance coverage amounts vary wildly, so consider your current financial situation and possible future investments when assessing life insurance policies. The higher the coverage, the more you’ll pay. However, too low of coverage may burden your loved ones with financial problems after your passing.

While longer insurance policies cost more annually, they may make more sense considering your financial situation. If you have a big family, have made significant investments in real estate, or accrued large amounts of debt, it may benefit your loved ones to invest in a whole life insurance policy versus a term life policy.

Smokers pay more for life insurance, as do those with medical problems or a family history of illness or disease. While some factors can’t change, the way you eat, exercise, and live can all affect the price of your life insurance. Pre-existing conditions such as cancer and diabetes will also incur higher life insurance premiums, however securing a policy is entirely possible. Some insurance providers require a medical exam measuring everything from your blood sugar to your stress levels, so prepare accordingly if you invest in a life insurance policy.

Certain careers and hobbies may incur higher life insurance policy rates. Construction workers die more frequently than daycare teachers, while extreme sports enthusiasts put themselves in danger more often than other hobbyists.