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Life Insurance

What’s the Best Age to Consider Getting Life Insurance?

By February 22, 2019February 7th, 2022No Comments

What’s the Best Age to Consider Getting Life Insurance?

Getting life insurance is a great investment for both you and your family. Here’s how to determine which age is the best time to invest in a policy.

Keyword(s): getting life insurance

In the United States, 84% of consumers believe that they need life insurance. But only less than two-fifths (59%) own such a policy.

If you’re one of the 41% who doesn’t have life insurance yet, now’s the best time to consider getting one. Because the best age to consider getting life insurance is while you’re still young.

In short, you want to have your life insured as early as possible. We’ll explain in more detail below the whys, so be sure to keep reading!

Why Young Adults Should Be Getting Life Insurance Now

Consider this:

Every year, 30.8 million emergency department visits occur because of unintentional injuries. These accidents claim over 161 thousand lives. That makes unintentional injury deaths in the U.S. the third leading cause of death.

Here’s another:

88% of U.S. households own a car. If yours is one of them, you’re at risk of being one of the yearly 2.35 million injured or disabled because of car crashes.

We’re not here to scare you, but these are eye-opening, if not downright sobering statistics. Accidents can happen to anyone, including you, and they can occur even when you’re young. If they do, they can leave you and your family in a serious financial pinch.

In fact, 10% of surveyed insured Millennials admit they don’t have enough coverage! They only have an average of $100,000 in life coverage, but their whole coverage needs amount to $452,000. They’re $352,000 short, which means that if they die, that shortage falls on their loved ones.

So, the short answer to the question, when to get life insurance? As early as now, while you’re still young, and while you’re still kickin’.

Granted, life insurance isn’t mandatory, unlike auto insurance coverage. But if you have people relying on you, then that’s reason enough to get life insurance. Even if you don’t, you should still get a policy so as not to burden your loved ones with debts.

The Younger You Are, The More Affordable Life Insurance Is

We get it. You’re only in your 20s, you still have a ways to go, and you’re looking forward to reaching your career goals. The last thing that’s on your mind is aging and well, the inevitable that comes along with it.

The truth is, no one is too young to get insurance. In fact, many parents have even taken out life insurance for their kids. Because the younger someone is when they buy life insurance, the less they’ll pay.

In short, age is one of the top factors insurers use when determining premiums. Why?

Lower Likelihood of Making a Claim in the Near Future

The first thing insurers consider is an applicant’s likelihood of making a claim. With life insurance, that claim comes with the passing of the applicant.

The younger applicants are, the farther they are from reaching their life expectancy. In the eyes of an insurer, that means a lower risk of making a payout for the death benefit anytime soon.

Younger Applicants Hold On to Policies Longer

That also means the applicant will hold on to their policy far longer. That gives insurance companies more years to also earn profits. So, in a way, the cheaper insurance rates are a way of an insurer giving back to their customers.

Young Age = Healthier Applicants

According to a study, only 3% of Americans have a healthy lifestyle. The majority — as in six in 10 — suffer from at least one chronic disease, such as heart disease or diabetes. Four in 10 even have more than one of these chronic diseases.

Age contributes to these health problems, particularly cardiovascular diseases. Hypertension is also the most common chronic disease in the elderly adult population. Cancer, osteoarthritis, and osteoporosis are also age-related.

That said, health is the second-most important factor in determining life insurance rates. Insurers believe that the younger someone is, the fewer health problems they have. Fewer health problems = longer life.

That’s also a good reason for you to get life insurance now, while you’re still young. The healthier you are, the lower your life insurance premiums will be. It’s best that you take out a life policy before you develop these age-related health issues.

Buying Life Insurance Before an Inherent Need Comes Up

“When should I get life insurance, before marriage or when I have kids?” This is another common question asked when determining when to get life insurance.

Again, your age and health are good enough reasons to get life insurance now. But it becomes even more important when these major life changes occur. If you have plans of tying the knot soon, get insured before that or before you even have kids.

We’ve already established that young age and good health keep premiums low. But buying a life policy now also gives you more freedom to upgrade your coverage in the future, for less.

Say you buy a policy while you’re still in your 20s, in good health, and unmarried. You already own one, so upgrading it will still be more affordable than if you buy a larger policy when you’re older. Buying when you’re older and have more dependents make life insurance more expensive.

Buying a universal life insurance policy early also means more years to build its cash value. By the time you have kids, you may have earned enough to make a withdrawal and treat yourself!

Also, let’s not forget the risk of health problems while you’re already building a family. For instance, of the 30.3 million diagnosed with diabetes in 2015, 4.6 million were between the ages of 18 and 44. That doesn’t include the 84.1 million aged 18 and older who had pre-diabetes.

The Bottom Line: Buy Life Insurance As Early as Possible

Getting life insurance is best done while you’re still young. Especially with life expectancy in the U.S. having dropped again (to 78.6 years) in 2017 — the second time in three years. The sooner you take out a life policy, the sooner you can protect yourself, your loved ones, and your finances.

Ready to discuss your life insurance options? If so, then don’t hesitate to connect with us and request a free quote!

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