What is the Best Age to Get Life Insurance? [Includes Rate Chart]

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Several years ago when I bought my life insurance policy I always look back at that moment and think to myself how glad I am to have made that decision early on in life.

However, I know people who’ve personally waited to buy life insurance only to find out that they can’t get it or the cost is just too high to bear.  Other I’ve come across believe its a total shame and not worth it.  However, I’ve found to be a necessary part of anybody’s financial plan no matter what your age.

So when is the right age to get life insurance?  Life insurance is at it’s most inexpensive when you are younger and in good health.  It will never get any cheaper as you get older.  As you get older you’re chances of developing health problems are more likely and will drive prices up as a result.  Buying a policy in your early 20’s will give you the best prices and allow you to secure a monthly premium that does not change in price for the life of the policy.

To help you better understand this check out the chart below to see a list of rates I ran for myself through a local insurance company.

 

What is the Best Age to Get Life Insurance?

Below is a list of example rates I ran for myself at different ages from 20 years old all the way up to 80 years old.

Age Policy TypeMonthly PremiumDeath Benefit
2030 Year Term$12.64$100,000
3030 Year Term$12.98$100,000
4030 Year Term$18.12$100,000
5030 Year Term$38.50$100,000
6020 Year Term$54.65$100,000
7020 Year Term$206.23$100,000
8010 Year Term$289.63$100,000

As you can see life insurance rates only go up as you get older but that isn’t the only thing I noticed about these rates after I ran them.

#1 Your First 20 Years

First, rates for the most part, stay fairly low as long as you’re in good health until age 50.  By this point, rates will make a more significant jump and double the premiums from 10 years prior.

This gives you a solid 20 years of your adulthood to get insurance and not overpay in monthly premiums.

#2 The Big Jump

The next big jump happens at age 70.  From age, 60 to 70 rates go up drastically.  At age 60 I got rates around $54.65 to $206.23 a month going up 4 times in cost over a 10 year period.  If you plan to buy life insurance at this age you are going to pay a lot.

This is with good health and not being a smoker.  If you are in bad health and smoke it’s going to cost you even more.

#3 Term Period Decreases

The final thing you should notice about this chart is that once you get in your 60’s to 80’s you will have to decrease your term limit from 30 years to a 20 year to 10-year term limit.  So not only will you be paying more the older you get but you will have to take a short term limit for your policy.

After age 80 it will become extremely tough for an insurance company to underwrite a policy and if they do they may require a 2-year rule where you must pay into the policy for a full two years before you pass away to claim the death benefit.

To get more insight on I broke down the rest of this article based on the age group to show what you could expect.

 

Buying Life Insurance in Your 20s

The perfect age when purchasing Life Insurance will be in your 20s. There are lower premiums compared to other age groups. As a new employee, there are no significant responsibilities that need shouldering yet. Possibly, you may have no family yet to support at this phase of life.

You are probably still enjoying the bachelor or bachelorette life, where there are no more books, no more school, and no more teachers. But maybe you are still paying off some student loans. Also, you are probably healthy and fit as a fiddle, which is the best time to be approved for insurance.

If you decide to start your own family in the middle of your decade, then you need life insurance, especially if you are the breadwinner. If something untoward happens to you, then your spouse and children will have something to replace the lost income for the first few months. Getting term or permanent insurance is an excellent way to ensure a better life for your family with or without you.

 

Buying Life Insurance in Your 30s

Some individuals continue to live the single life, long into their 30s. You are possibly still in good health at this age and making more money than when you were in your 20s. You may now be looking to purchase a house or other properties for investment.

You might also feel that a new, upgraded car might be right to buy in this decade. If your vehicle is more than ten years old and is showing more forms of sickness than you are, then you might need a new one.

However, if you are raising a family already at this stage, then it is wise to have term insurance as an assurance for temporary income should death or disability comes knocking on your door. The cash value of an insurance policy can also help pay off the debts, mortgage, costs of child care, including education, and possible medical bills.

 

Buying Life Insurance in Your 40s

Others say that life begins at forty. One sitting on this age can probably feel the peak of life coming at him full speed ahead. It might seem like a life of travel and leisure. Financial freedom may look to be within reach. But even if it all seems peachy, you need to make sure that all of your financial affairs are in order.

It would be best if you reassessed what you currently have in life. That means you should get insurance for everything that needs protection – at least one for your life, homeowners insurance, auto insurance, disability insurance, etc.

If you have kids, you can opt to get some for them, especially since the premiums are lower than yours and the coverage of your spouse. Your current company may have taken one on your life for your protection, especially if you go out to do fieldwork. But it is just a minimal amount and will not be enough should you rely on it solely upon demise.

If you feel you need additional insurance, then this is the best time to get another one. Premiums are a bit higher at this age compared to when you were in your 20s, but it is still better rather than getting it later. Remember that updated life insurance coverage is necessary, especially as one gets older.

If you feel that you will outlive other people, then you can opt to have a permanent insurance policy. Upgrading of some term policies to a permanent contract is possible for a limited time. So this may be an excellent time to reevaluate yours and the needs of your whole family.

 

Buying Life Insurance in Your 50s

In your 50s, your spouse and partner may be considering a calmer change of pace. You were probably part of the rat race for a long time. Ensuring that you have enough for a comfortable retirement, you are now ready to see the world in a different light.

Your bucket list is perhaps being checked one-by-one during this phase. You may be coming home to an empty nest as your children are now grown adults who now secure their own families. Life insurance does not seem to be as much of a need as when you were younger.

But in reality, nothing in life is perfect. If you are in your half-century era and still working, then you may have other people who rely on your income. You may also think that your life savings are not that significant yet and will not be enough if you stop work.

If that is the case, then there is nothing more important than ensuring that you have life insurance. While it is true that insurance bought at this age will have higher premiums, the benefit will outweigh the costs.

 

Buying Life Insurance in Your 60s

It would help if you faced the facts when you reach this age. At this phase, you should be free from financial burdens. Your children are probably out of the house, caring for their little juniors. That said, work is perhaps not a priority for you anymore.

It is the right age to retire if you have not done so yet. If you got permanent life insurance when you were in your 20s or 30s, it would have garnered you enough of a pension from the existing cash values of your policy to get you through your years.

But if you still need some form of income for you and your spouse, then you may need to get insurance for yourself. If you have also amassed plenty of properties in the past decades, then you will have a relatively high net worth.

You will then need an additional policy to augment possible estate and inheritance taxes for your beneficiaries upon your passing. Unfortunately, your age and potential diseases that you encountered along the way will be a significant factor in the premium quote of the insurance company.

 

Buying Life Insurance When You Need It

Life insurance will always be a need because death is inevitable. It comes at any age and happens when you least expect it. The ones you leave behind will still feel that emotional loss. If there is additional financial loss, the grief may be too much to bear, especially for your spouse and partner.

If the demise comes from a long illness, the medical expenses are still shouldered by the family long after passing. Regardless, they will need to pay for funeral expenses (church rites, viewing of the body, buying the plot of land at the cemetery, etc.), which still cost a lot of money.

If there are debts left in the care of the deceased, death has no power to erase it. The family will still be left to take care of it. It will become their debt to pay unless you secure it as early as now so that it does not happen. The only solution for it is a massive savings account or an insurance policy that will fully cover all needs.

A savings account under the name of the deceased may take a lot of time as court orders, and other post-mortem paperwork are still needed to establish the death of the account owner. Bank dealings can take more than a month before money can be released. So an insurance policy is still the best option in taking care of the after-demise needs of the immediate family.

So, no matter the age, getting a life insurance plan for yourself is always a sound idea. If you are the breadwinner, show your love for your family and partner. Secure one or two insurance policies for your family, because you will never know when your time is up.

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