What Is the Best Age to Get Life Insurance?

Posted by Pekin Insurance on Sep 20, 2017

There's no debate about the best age to get life insurance: the answer is right now.


Life insurance isn't exactly a date night conversation. It's not a bedtime story with your kids. It's definitely not for the PTO meeting.

"Hi, Bob. How are the kids?"
"Good, Darrel. How are yours?"
"They're great, Bob. By the way, are your finances in order if you have an accident on the way home tonight?"

You aren't making many friends that way! But life insurance is an important topic, and we all ask our friends for recommendations. Unfortunately, asking your friends if they know the best age to get life insurance is like asking whether a '57 Chevy has a better design than a '67 Corvette Stingray—debate is sure to ensue.

In fact, if you look at it purely from a numbers standpoint, there is no debate. The younger you are when you purchase life insurance, the lower your premium is. Focusing solely on numbers, however, neglects some major factors in deciding on a life insurance policy.



The Best Age to Get Life Insurance

Because we don't know what life may bring our way, the best age to get life insurance is whatever age you are right now. In other words, there are many reasons to buy a life insurance policy now, regardless of your age. Why? Because one of the biggest benefits of a policy is that it helps your loved ones in the event of your death.

If you have young children, a life insurance policy can help them financially when you aren't there to support them. A policy can help your spouse or partner cover living expenses if you aren't there to contribute. A life insurance policy can cover funeral expenses, end of life medical expenses, and so much more.

And the sooner you buy a policy, the sooner you are covered in case of a tragedy.

But the real question isn't so much about the best age to get a life insurance policy as it is about what kind of life insurance policy to get. Different policies have different benefits that may be a better match for you at certain points in your life.

Two common types of life insurance are term life and whole life. Here are some of the benefits of each.


Whole Life vs. Term Life

Term life policies are valid for a term of anywhere from 10 to 30 years, up to age 95. These policies have a guaranteed payout, or death benefit, and your premium remains the same throughout the life of the policy.

Whole life policies remain in place for the entirety of your life. Like term life policies, your premium remains the same and has a guaranteed payout. Unlike term life policies, however, a whole life policy accumulates cash value.

Though term life policies don't have a cash value, the premiums tend to be lower than whole life premiums. Term life insurance is a good option for young families who have a tight budget but want to ensure their children, spouse, or partner will be taken care of financially in case of the policyholder's death.

A term life policy is also a good option for a senior who wants to make sure funeral costs are covered or who wants to leave something for a beneficiary.

Whole life insurance policies are more expensive, but they come with benefits that a term life policy doesn't have. For instance, you can borrow against the value of a whole life policy for long-term care. A whole life policy also has a guaranteed payout no matter when you die.

A whole life policy is a good option for someone who wants to guarantee an inheritance for their children or who wants an investment with guaranteed benefits.

Lying somewhere between term life and whole life insurance are policies like universal life and transitional life insurance.

Universal life offers guaranteed benefits, cash accumulation, and flexible payment and benefit options. Transitional life provides a high, level life insurance benefit during the years you need it the most and ends with a guaranteed, paid-up policy that will be there for the rest of your life.

No matter which policy works best for you, the fact remains that the best age to get life insurance is as young as possible. The sooner you purchase a policy, the lower your premiums are, and the sooner you can begin taking care of your future.

Get in touch with your Pekin Insurance agent today so you can work together and decide which policy is right for you.




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