Life Insurance in Your 30’s

Taking out a life insurance policy might not be the most frequent thought occupying your mind when you are 30. But when you’re thinking about your future, as well as your family’s financial security, there’s no time like the present.

Most millennials think that life insurance is complicated to get and costs thousands. In reality, this is far from the case. You can get life insurance coverage fast, hassle-free, and without having to set foot outside (buying life insurance online is easier than ever these days).

Get it while you are still young, and it can cost as little as $20 a month (or less!).

In this article, I’ll tell you why the best time to get life insurance is when you’re in your 30s – and I’ll give you 9 reasons to back it up.

life insurance 30 - 39 years old

Do 30 Year Olds Need Life Insurance?

Life insurance is a great idea for everyone – but I understand why many millennials are not keen to invest in it at their age. Life is getting increasingly expensive – and life insurance often seems like an expense that doesn’t pay off. But that couldn’t be further from the truth. Life insurance is like a safety blanket for your finances – and the sooner you have it, the better.

If you’re not sure whether you need life insurance or not, the best question to ask yourself is whether there’s anyone in your life who would be financially worse off if anything was to happen to you. Would anyone struggle without your income?

If you cannot think of anyone, you might not need life insurance right now (but do keep in mind that might change in the future). Having no-one depending on you financially right now doesn’t mean that it will remain this way forever. Think about your parents, who are getting old and might need your help later on. You not being around could leave them in a tough situation.

You should also consider getting life insurance if you have debt that anyone else co-signed, like that private student loan your parents helped you to get. If anything were to happen to you, your parents would need to pay that off for you. But if you had life insurance, your coverage would take care of that debt in case you are not around to do so yourself.

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What Is the Best Age for Life Insurance?

Your 30s is the best time to get life insurance. Not only do many people in their 30s start their families, but they also start thinking about their financial future and stability, buy their homes, and maybe even start a business.

Life insurance is much cheaper in your 30s when compared to later years – so if you get it now, you could lock in a pretty sweet rate.

9 Best Reasons to Get Life Insurance in Your 30s

While there are many reasons why you should get life insurance in your 30s, I selected the 9 that I feel are the most important. These are the main reasons why more and more young people choose to get life insurance while they’re young and healthy (and that’s a great example of a smart financial decision – because it considers the worst-case scenario).

1. Getting Life Insurance Now Saves Money in the Long Run

Even though many millennials think they’ll be paying hundreds of dollars a month for life insurance, the truth is that premiums are much lower while you’re young. That’s no secret, and you should take advantage of it since your premium rate will be fixed for the duration of your life insurance term.

Monthly premiums go up every year, so the smartest move would be not to wait any longer and take the plunge to save money.

2. Life Insurance is Essential When Starting a Family

Many people in their 30s start a family or start planning it. Getting married and planning to have children can bring a lot of joy into your life – but it also brings a lot of new responsibilities. It’s not only you that you will need to support and worry about – so you’ll need to make financial decisions that also protect your loved ones.

Getting life insurance can take away the worry of your family not being able to manage to make ends meet without you. With life insurance coverage, you can be sure your loved ones are taken care of no matter what.

3. Your Income is More Stable in Your 30s

Once you reach your 30s, you’re probably already done with your education and have a stable job with a good income (well, definitely better than what you were paid in your 20s!). It is the best time to set aside a few extra bucks a week and invest them in your life insurance. When you’re young and healthy, the premiums don’t bite into your finances too hard.

4. You Might Have Long Term Debts

If you started a family, you probably have a mortgage and other long term debts, such as an auto loan or a student loan. By getting life insurance, you can protect your family from them not being able to pay off all the debt without your income, in case something happens to you, more so if your spouse is a stay-at-home parent and you have young kids. 

5. You Are Healthy (and that might change in the future)

Most people in their 30s are in excellent health – but the truth is, your health can (and often does) change with time. Your life insurance rate depends on your medical health, and you might be asked to undertake a medical exam.

By getting life insurance while in excellent health, you will save a lot of money over the years to come. No matter how your health changes, the premium will often remain the same till the end of your policy.

6. You May Have Just Started Your Own Business

It is very common to start a small business in your 30s (and you may have even taken out a small business loan). While having your own business promises you the American dream, it might go the other way once you are not there anymore. Having life insurance can protect your family from the financial burdens that can bring, especially if your business holds inventory or has debt.

7. Your Family Expenses Will Get Higher

Starting and maintaining a family can increase your expenses quite a lot. Food, daycare, school, clothes, and toys are just some of the extra things that you will have to pay for. Getting life insurance for at least until your kids are out of college, and you’re in retirement, can help you have the peace of mind that everyone will be able to continue their life even without your income.

8. Retirement Is Years Away

You most likely have another 30 or 40 years until you retire (unless, of course, you’ve started investing for early retirement already, in which case I salute you!). Even if you don’t have any dependents, life insurance might be a good choice.

Within the years towards your retirement, you will probably manage to gather assets and grow savings, however in the 30s, you’re just starting, and if your life ends unexpectedly, it can be a great financial burden for your immediate family members. According to the National Funeral Directors Association, the funeral and memorial alone cost at least $8,000. It’s a scary number – and one that many people often don’t even consider!

9. It’s A Fast & Simple Step Toward Adulthood

There are so many things to take care of when you grow up – and getting life insurance is one of them.

If you feel like there are too many things on your adult to-do list, you can cross one out very easily. Getting life insurance these days is simple and fast. You can have it done online within a few minutes, and there you go, you are more adult than you were a few minutes ago.

How Much is Life Insurance for a 30 Year Old?

Life insurance cost does not only depend on your age – there are a few other factors that will determine your premium cost as well. While the premium does depend on your policy value and term length, it also takes into consideration your gender, health, and lifestyle.

To give you an idea, here are some average life insurance rates from Policygenius for a 30 and 35 year old:

Life Insurance Rates for Men

Age

$500K

$1 Million

30 Years Old

$28.58

$47.48

35 Years Old

$31.02

$52.20

Quotes based on a preferred non-smoking male for 20 year term life insurance.

To compare the costs between 30 and 35-year-old men and women, let’s take a look at the cost of the exact same policy (20-year term life insurance) and see how much the same policy would cost are for a female.

Life Insurance Rates for Women

Age

$500K

$1 Million

30 Years Old

$23.06

$37.02

35 Years Old

$26.08

$42.67

As you can see from the rates above, by waiting 5 years, you will have to pay several dollars more every month, regardless of whether you are male or female. That mounts up to a large sum over 30 years.

Should I Get 20 or 30 Year Term Life Insurance?

The most popular term life insurance policy is a 20-year term. It has lower rates than 30-year life insurance but still gives you financial protection for a relatively long time.

While 20-year might be a good choice for many millennials, you should go with a 30-year term life insurance policy if you have a mortgage or other long term loans that won’t be paid out in the next 20 years. 30-year life insurance is also a better choice for those who plan to start a family or have children with special needs.

Investing in Life Insurance in Your 30s is a Smart Financial Move

Life in your 30s can be stressful. You are building your career or business, getting married or starting a family, building a house, planning your financial future, and collecting debts along the way. Getting life insurance can take one worry away – the worry of your family struggling financially, should something happen to you.

By getting life insurance, you will not only have peace of mind about your family’s future but will also save money on premiums. And actually, purchasing the policy is super simple, fast, and inexpensive these days! Applications can be completed online, and if you are in good health, you can even skip the medical exam with some life insurance companies.

Grant Sabatier

Grant Sabatier

Creator of Millennial Money and Author of Financial Freedom (Penguin Random House). Dubbed "The Millennial Millionaire" by CNBC, Grant went from $2.26 to over $1 million in 5 years, reaching financial independence at age 30. Grant has been featured in The New York Times, Wall Street Journal, BBC, NPR, Money Magazine and many others. He uses Personal Capital to manage his money in 10 minutes a month.
Grant Sabatier

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