The quick answer? Should be.
- The older you are, the less life insurance you need.
- Age can also result in higher input costs.
If there are people in your life who depend on you financially, or who may suffer financially in your absence, it’s worth letting go. life insurance policy. That way, if something happens to you, you won’t end up leaving those important people in the lurch.
Most people finish applying for life insurance in their 30s, since that is a normal time in life to have children. But you may end up applying for life insurance in your 20s, 40s, or even 50s.
The question is: Should your age affect the amount of life insurance you get?
Consider your age
Your goal in purchasing life insurance should be to provide your loved ones with enough money to support themselves financially in your absence. But your parent can dictate the number of years you are looking to issue the insurance.
Let’s say you are married with no children and you are 40 years old. You may want to leave a 20-year permanent life insurance mandatory to protect your spouse until they reach retirement age.
If you earn $80,000 a year, you may decide that you want your life insurance to offer a maximum benefit that replaces your salary 20 times, leaving your spouse with $1.6 million. But that number may look different if you apply to a younger or older age. (For example, if you were to give your spouse a benefit to cover 10 years of your salary, you would see $800,000 in life insurance.)
Your parent can determine your insurance costs
Just as you should consider your age when deciding how much life insurance to buy, your age will also determine the cost of your insurance. Generally, the older you are when you apply for life insurance, the higher the premium.
One of the things is that as people get older, their health tends to decline. You may be heavier in your 40s than in your 20s or 30s. But the higher weight can lead to higher premiums because your life insurance company may assume that there is a higher standard.
What’s more, if you apply for insurance when you’re on the old side, your insurer may consider paying more of your death benefit. And so you can face very high prices for that reason.
This does not mean that you should not apply for life insurance in old age. There may be people in your life that you want to protect, and that is an important thing to do. However, don’t be surprised if the amount you pay for life insurance at, say, age 45 is higher than what someone in their mid-30s would be charged.
At the same time, purchasing life insurance can result in lower premiums. No matter what age you are applying for insurance, talk to others company and compare quotes before signing. A little research in your area can yield a reasonable amount of savings.
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