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

Feb 23, 2023 | Insurance, Life Insurance

By the age of 30, many people have begun to settle into a steady lifestyle. They have families, dedicate themselves to particular employers or industries, and typically own or plan to purchase a home. With this stability comes the responsibility of ensuring that they provide for their loved ones in the case of an unexpected death.

Considering life insurance at 30 years old makes sense from a financial standpoint, especially if a family stands to lose a substantial amount of income or if a person has significant debt. Life insurance for a 30-year-old may cost less than you think, so read on to learn more about purchasing life insurance in your thirties.

Why Should a 30-Year-Old Get Life Insurance?

Life insurance provides a financial safety net for family members and loved ones in the case of an unexpected passing from an accident, illness, or other cause. Many 30-year-olds have established themselves with life partners, children, and homes, all of which require regular funds in the case of a loss. Besides funeral expenses and estate planning, life insurance policies provide death benefits that assist with multiple financial responsibilities after a person’s passing.

Mortgages

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.

Significant Debts

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.

Income Replacement

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.

Trust Funds

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.

Have More Questions About Life Insurance in Your 30’s?

We can help you get the answers.

Life Insurance Types

Learn about the two types of life insurance and which one can best benefit your situation.

Term Life Insurance

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

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.

Which Type of Life Insurance Should a 30-Year-Old Purchase?

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.

What Is the Cost of Life Insurance for a 30-Year-Old?

The cost of life insurance for a 30-year-old typically ranges between $19 and $82 per month. The exact cost you’ll pay depends on many factors, including the following:

Age and Gender

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

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.

Insurance Policy Length

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.

Health and Lifestyle

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.

Occupation and Activities

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.

Life Insurance in My 30’s FAQs

When 30-year-olds consider purchasing life insurance, they often encounter many common questions. Learn the most frequently asked questions when purchasing life insurance in your thirties.

The amount of life insurance a 30-year-old needs depends on many factors, including:

  • The size of your family
  • The amount of debt you have
  • How much income you bring to the table

The larger the numbers of any of the above, the more coverage you may need. A professional life insurance provider can help you determine the right amount of coverage for your specific situation.

Many 30-year-olds have life insurance policies through their spouses, parents, or workplaces. However, these policies may not cover all aspects of potential death, and the coverage may not relieve the financial burdens on your family after your passing. Take time to investigate what your current life insurance policies cover, then check into the possibility of an additional policy.

The healthier you live, and the better you take care of yourself, the lower your life insurance policy payments. You can also take advantage of lower premiums by investing in your policy at a young age.

Related Article

Every Canadian needs life insurance, and this article explains the top 3 benefits.

Plan for the Future With a Life Insurance Policy

Regardless of age, investing in a life insurance policy provides a safety net for family members and loved ones left behind in case of an unexpected death. Whether you’ve settled down in nuclear family life or live on the wild side, investing in life insurance for a 30-year-old helps provide for your loved ones in the event of an unexpected death. The sooner you begin investing, the lower your premiums and the more funds you can accrue over time. Take the first step by learning more about how your specific situation affects your life insurance premiums.

Contact Alliance Income Services Corporation for a free quote that allows you to view multiple life insurance premiums from different providers. With these comparisons, you can find the best possible rate, so fill out our free quote form today and guarantee financial freedom for your family.

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