Buying Life Insurance in Your 20’s Vs Your 40’s

Buying Life Insurance in Your 20's Vs Your 40's

The reasons for getting life insurance are drastically different when you’re in your 20’s vs your 40’s. When you’re in your 20’s, you get life insurance to protect your family against your student loans or to help with funeral expenses. Or maybe you bought your first home so you have life insurance to cover your mortgage. When you’re in your 40’s, you most likely have life insurance to get your kids to college, to help your spouse make house payments or to cover your loss of income. Whether you are in your 20’s or your 40’s, life insurance is important in order to protect your family.

But did you know that when you get life insurance in your 20’s it’s significantly cheaper than if you waited until you were in your 40’s? Let’s think about this for a minute. There are a lot of factors that play into this and we want to make sure we cover all of them. First of all, you’ll likely need term life insurance for a longer period of time when you’re in your 20’s if you plan on eventually starting a family. When you’re in your 40’s, maybe you already have kids and a house, so you may not need a long period of time for your term life insurance coverage. Let’s say that in your 20’s you’ll need a 30-year plan and in your 40’s you’ll need a 20-year plan. Even with the ten years difference, you’ll save money by getting a term life insurance plan when you’re in your 20’s. It’s also likely that in your 40’s you won’t be as healthy as you were in your 20’s, which makes a big difference when buying life insurance. Here’s a comparison to give you an idea how much you’ll save.

Gender Health Rating Class Age Term Length Amount of Coverage Monthly Payment
Female Preferred Plus 22 30 Years $1,000,000 $41.71
Female Preferred 42 20 Years $1,000,000 $66.65
Male Preferred Plus 22 30 Years $1,000,000 $52.03
Male Preferred 42 20 Years $1,000,000 $82.13

With this chart, you can see that the monthly premiums for people in their 20’s are much less than in the 40’s, even with the 10-year term length difference. With all the payments made over the term lengths, you’ll save around $1,000. That may not seem like a significant amount, but that also means 10 more years of coverage. Those 10 years could be crucial.

Now let’s say that you’re young, you’re in your 20’s, you have already started a family, and you only need a 20-year term length.

Gender Health Rating Class Age Term Length Amount of Coverage Monthly Payment
Female Preferred Plus 22 20 Years $1,000,000 $27.95
Female Preferred 42 20 Years $1,000,000 $66.65
Male Preferred Plus 22 20 Years $1,000,000 $33.97
Male Preferred 42 20 Years $1,000,000 $82.13

Those payments are less than half the price of the same plan in your 40’s. For men, it’s getting close to three times the amount for a plan in your 40’s.

So what if you’re in your 40’s and you’re super healthy? You have no health issues at all. Here’s what those payments look like in comparison to a person in their 20’s.

Gender Health Rating Class Age Term Length Amount of Coverage Monthly Payment
Female Preferred Plus 22 20 Years $1,000,000 $27.95
Female Preferred Plus 22 30 Years $1,000,000 $41.71
Female Preferred Plus 42 20 Years $1,000,000 $52.03
Male Preferred Plus 22 20 Years $1,000,000 $33.97
Male Preferred Plus 22 30 Years $1,000,000 $52.03
Male Preferred Plus 42 20 Years $1,000,000 $65.79

No matter how you slice it, life insurance costs less when you get a plan in your 20’s. Even if you aren’t in good health in your 20’s, you can still get close to the same rates as the highest level of health (Preferred Plus).

One certain way to increase your rates is by smoking cigarettes. Your monthly premium can triple if you are a cigarette smoker. Cigar smokers can get by if they don’t smoke that often depending on the insurance company.

Disclaimer: Monthly premiums in above tables are subject to change. All monthly premiums were taken from the same insurance provider, even if they weren’t the lowest price.


LifePlan Financial

At LifePlan Financial, we pride ourselves on our quality work, our honesty to our clients, and the reliability we provide. Getting life insurance doesn’t have to be a hassle when you use LifePlan Financial. Contact us today for any questions or get an instant term life insurance quote to get started.

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