Coverage for people in their 30's
This is pobably one of the best times to get life insurance because you’re considered young by insurance companies and you’re probably still in good health. This is important because the cost of life insurance depends mainly on your age and health condition. The younger and healthier you are the lower the cost of your insurance and vice versa. Let’s get to it.
There are three types of life insurance that most people purchase, Whole Life, Term Insurance and Return of Premium. These all have different characteristics that would apply to someone in this age group looking for coverage. Again, this is one of the best times to get covered if you’re uninsured, so take advantage of it.
Whole Life will cover you until you’re 90, sometimes up to 105. These policies are inexpensive for this age group because of the life expectancy of the group, but it will cost more than term insurance Also people of this age group are a lot less likely to have develed health issues this young. These policies will have benefits life cash value, they have inexpensive riders like child riders if there are children and they will pay up to 50% of the policy if the insured suddenly becomes terminally ill. Please see http://www.awareinsurance.com/blog/life-insurance-how-much-is-enough.
Term Life Insurance will cover you for a designated amount of time. This is often purchased for income replacement if something should happen to the insured. This is also used for mortgage protection https://en.wikipedia.org/wiki/Mortgage_insurance. This will cover the insured for the time that they are purchasing a home. Term life insurance will be less expensive than whole life, however these policies will have an expiration date. The policy will usually have a fixed premium, (mortgage insurance will have a decreasing premium) It should be noted that unlike whole life, the premium will increase dramatically after the term.
Return of Premium is a policy that will refund you the cost of the insurance after the designated term. The insured will be covered during that time and once that expires the payments will be refunded to the insured if there hasn’t been any claims or loans against the policy. The premiums are less that whole life policies, but are going to be more expensive that term. These are good policies for people in their 30’s because they will provide the coverage that is needed, but it will refund back a good amount when it is over, usually 15-30 years. Please see http://www.awareinsurance.com/blog/return-of-premium-life-insurance
So, if you’re in the age group that we’ve been discussing, now is a good time to get insured. Contact me or a licensed agent in your state so that they can present some options to you. I’ve met scores of people that are paying higher premiums because they didn’t take advantage of insurance while they were young.