Studies show that only a little over half of the population has life insurance.. But, once we reach our 30’s, many of us start realizing the critical nature of life insurance and the benefits it provides.
What is the best type of life insurance for this new point in your life? Read this to find out about why you need it, and two different types to invest in.
Millennial's and Life Insurance: It's More Affordable Than You Might Think
Only about 20% of millennial's between the ages of 18 and 34 would consider buying life insurance. Death seems a long way away when you're young. There are several reasons young people aren't buying. Millennial’s are getting married, buying homes and having families much later in life than previous generations, which means the need for life insurance isn’t a high priority.
For some, affording life insurance seems formidable. Rent, taxes, student loan debt, and many other things, top the list of reasons Millennial’s aren’t buying life insurance. Additionally, an estimated 44% of Millennial’s overestimate the how much life insurance is by as much as 5 times the actual cost!
It's important for everyone to know that preparing for the future doesn't have to break the bank. Payments and terms will differ based on need. Speaking to an insurance agent will help you determine what's best for you.
Best Types of Life Insurance When You're 30 Years Old
When you reach specific milestones, you celebrate. Graduations, marriages, kids, and career advancement are all things that we work hard for. When you reach these points, it’s natural to start thinking about preserving them. If you are considering life insurance, it’s important to know that there are a lot of different options. Here, we discuss the two main, and most well-known, types.
1. Term Life Insurance Term life insurance is a good life insurance option for 30 year old's. The reason is that policies come in different increments, such as 5, 10, and 30-year terms.
Term life insurance is insurance that offers a death benefit. It's critical to buy insurance that will cover both an unexpected tragedy and also a later death. If you're not sure about locking in for several years, shorter terms are available.
This type of insurance will provide your family with essentials in case of your death. The amount of coverage depends on what your policy includes. Proceeds can be used to cover final expenses, pay off a mortgage or other debts, and help with day-to-day living expenses
2. Whole Life Insurance
Whole life insurance is also a good option for 30-somethings. This type of policy covers more than the end of your life.
Whole life insurance policies have a both a death benefit and a cash value aspect that can be used while you’re still alive. While it covers your death, it also gives you options to help with other things.
Not only can you cash in for tax-free income later, but you can also plan for your children to have an inheritance. You can use it to pay off debts later in life or to fund college for children. It has many lifetime provisions.
An independent insurance agent can help you understand the benefits of a whole life insurance policy and why it might be right for you.
Life Insurance Tips and Agent Advice
Turning 30 years old usually means you begin to make more important decisions and take on more responsibilities. These decisions impact your life and, often, the life of those around you. Having a life insurance policy in place to ensure your loved ones are taken care of no matter what, is pretty important.
An independent insurance agent offers many different types of term and whole life insurance products and can help you find the one that best fits your needs and budget. Whether it's life, auto, home or health insurance, an insurance agent is here to help you cover the things that matter the most. Contact us today to get started!