Life insurance is a lot like car insurance. You can get it once you’re an adult and on your own, but the rates are much lower if you buy it in your teens or early 20s. The same goes for life insurance, where young adults can get better deals than older ones. But just like auto insurers don’t want to talk with teenagers about buying cars until they’ve already driven one for a while, some companies won’t even consider giving you their lowest prices until they know you’re likely to live long enough to benefit from them!
Younger adults, generally between the ages of 18 and 30, may not have had as much life experience or acquired the kind of assets that older adults do. You might not yet have a family, or a stable career. That’s why it can be more challenging to get life insurance as a young adult.
The good news is that there are some great options out there for those in their 20s and 30s who want life insurance coverage but don’t have much cash on hand (or any cash at all). If you’re in your 20s and 30s, here’s what you need to know about getting coverage:
- You may be able to get approved for term life insurance if you aren’t able to afford traditional whole life policies yet because they require high premiums up front. The rates on these policies are lower than whole-life ones because they only last for a predetermined period of time before expiring—usually five years or 10 years—and then must be renewed with another premium payment before they’ll renew again.*
Middle-aged adults are at a higher risk of death from heart disease, stroke and cancer. If these conditions develop, you may be more likely to die from them than from an accident or other cause. Because of this, it’s important to get life insurance before they develop.
The premiums for middle-aged adults are lower than those of older adults because there is less risk that they will die soon (they have longer lifespans).
Adults with chronic conditions
If you’re suffering from a chronic condition, your age can work in your favor.
Insurance companies are more likely to cover people with chronic conditions than those who aren’t, because these conditions are unlikely to improve over time. For example, if you have diabetes or heart disease, it’s unlikely that those conditions will ever go away completely and the cost of treatment will only increase as time goes on.
Additionally, insurance companies may be more willing to offer coverage for a child who has a genetic predisposition for a chronic illness—such as asthma or cancer—because they know that with proper medical care and monitoring they can help prevent any major complications down the road.
Adults who want to leave a legacy
If you’re not quite ready to give up the reins of your life and want to leave a legacy, 2016 is the perfect time. You can leave a legacy in your own name—for example by naming your spouse or children as beneficiaries of an existing policy. Or you can consider giving that gift to charity: One way of doing so is through charitable gift annuities, which are contracts between an individual and a charity that provide regular payments from the annuity for life or for a fixed term (typically 10 years).
Another option: The New York Life Foundation offers Legacy Grants, which are awarded annually (the deadline is May 1) to help people who have been affected by 9/11 continue their education or training in order to pursue careers related to public service.
Don’t just wait until it’s too late.
Entire books have been written on this subject, but the bottom line is that if you wait until it’s too late to get life insurance, your family will be in big trouble. Life insurance helps protect your loved ones from financial hardship and can give them peace of mind when it comes to paying for funeral costs or funding your children’s education. And if you’re still paying off a mortgage or have other debts, life insurance can pay those off as well.
Don’t wait—get started today!
We hope this article has helped you understand the different types of life insurance, and when is the ideal age to get it. The bottom line is that life insurance isn’t something to put off until later. If you want to protect your family’s financial future, consider getting a policy today!