Who needs a 30-year life insurance policy?
Time-of-Life Life Insurance can be convenient when you purchase coverage from an online life insurance agency such as Haven Life. You decide how much insurance you need based on the death benefit, get life insurance courses and submit your application. If your application is approved, you pay your first premium to get your coverage started. You may need to take a medical examination as a condition to qualify for coverage, but in addition, it is relatively easy to meet your life insurance needs.
One of the biggest decisions to make, however, is how long you need and want your coverage to be last. Remember that term life insurance is exactly that, coverage for a particular "term" or time period. When the term ends, your coverage ends. It differs from a permanent policy that provides lifetime coverage as long as you pay your life insurance premiums by arrangement.
If you have decided that the concept of life cover gives more meaning than a permanent life insurance, it is important to ensure that you have chosen the right length. After all, you want to make sure that your family has coverage during the years they need the most. And by choosing the right length from the start, you can save money on the road.
With that in mind, this is where you need to know to decide if a 30-year life policy is right for you.
What is a term length and why is it important?
Individual lengths can vary from one insurance to another. But typical lengths are 10, 15, 20 or 30 years. The right length for you will cover your family during the years they are likely to need most if something happens to you. This can mean until your children are out of college, for example, or your mortgage rate is paid off.
So why apply the length of the length?
The main reason is that choosing a longer term can offer peace of mind for yourself and your family. When a death is incredible, it can leave your loved ones in a tight place financially, especially if you are the primary breadwinner for your family. If they depend on your income to pay mortgage loans, pay off credit card debt or meet daily expenses, you can choose the right term to maintain their financial health after your death.
Think of what might happen, for example, if you buy life insurance to cover you at a certain age, say 50 years. You reach your 50th birthday and you are still in excellent health, so do not interfere with renewing your life insurance or changing to a permanent life insurance policy. You still owe $ 100,000 to your mortgage, but you assume you have plenty of time to pay for it.
But then the unexpected happens and suddenly your family no longer has your income to rely on. The death benefit that could have given them money to cover expenses is no longer there. This is not a situation people are planning on, but it is a risk to be aware that you are in good health and survive your life insurance contract.
One thing you do not want to worry about when shopping for insurance is the insurance company's financial strength. You should be sure that the company you buy from will be around and be able to pay claims decades in the future. Take five minutes to learn more about how financial forces work and why they should be important to you.
How conceptual length affects the life insurance premiums
Apart from ensuring that your family's financial needs are met, there is another side to choosing a life insurance period. Your insurance coverage, along with your overall health and the results of your medical examination, can determine how much your life insurance costs.
The amount of coverage you purchase and the length have a direct impact on the price of your term life insurance. The longer the cost of your insurance period, the more you pay to be insured.
Here is an example of how much the cost may differ based on what a healthy 30-year-old would pay for $ 250,000 in life reporting. If he assumes he has an excellent health, his monthly premium payments would be $ 26.53 based on a 30-year term with a Haven Term policy issued by MassMutual. With a 20-year maturity, the monthly premium payments go to $ 17.43.
The total cash payout for the 30-year policy would be about $ 9,226.80, provided he pays the premiums for the entire maturity and his beneficiaries never have reason to need the death penalty of the policy. The 20-year policy would cost $ 4.183.20 for the entire period, less than half the cost.
But with the long-term policy, it may make sense for a primary breadwinner who is worried that he or she may need to cover the financial needs beyond a shorter period of time. . An online life insurance calculator can help you get an idea of which term best meets your needs. It will take into account factors such as your age, your income level, whether you have children, their ages, and your debt prospects.
The higher price is just not in the budget for everyone.
The younger you are when you buy life insurance, the better your health is, the lower your premium payments are likely. If you are in the 20s or early 30s, your age works to your advantage to be covered at an affordable cost. Life insurance is by nature cheaper than a permanent policy, as it only covers you for a certain period.
Keep in mind that some factors may increase the amount you pay for life insurance. As part of the insurance process, you need to answer questions about your health. You may also need to take a life insurance medical examination, although some applicants may qualify for our InstantTerm process, where some applicants aged 18-59 who are seeking a $ 1 million death penalty may be able to complete coverage without medical examination, based on the information provided during the application. Customers are notified when an app has been sent if they qualify to skip the exam. [A note from our lawyers: Keep in mind that it’s always very important to be honest in the application process. The issuance of the policy or payment of benefits may depend upon the answers given in the application and their truthfulness.] Having a health condition, such as diabetes, can mean higher premium payments.
Is a 30 year old the best option?
A 30-year-old is a popular choice because of the long-term coverage it offers. Although there is a definite difference in costs between a 30-year term and a shorter life insurance policy, the additional years can provide great security.
At the same time, one must consider whether and how a longer term matches your goals, needs and budget. Here are some of the most common scenarios where you can ask if a 30-year policy is right for you.
"I have a 30-year mortgage".
A 30-year life insurance is a good option for families who carry one, you guessed it, 30-year mortgage. Or, who has somewhere between 20 and 30 years to continue paying their home loan.
Every month, most of us pay more for housing costs than any other cost category. If something happens to you before the mortgage is paid off, your policy can help your family continue to make the monthly mortgage or help pay the entire balance in full.
It can let your family stay in the home after your death, which can be important for your spouse and your children. Being able to stay in the family can make it harder to treat and transition, especially if your children are younger.
"I am newly married."
If you are younger and newly married, getting life insurance can be the last thing in your mind. But it is an important step to consider if you want to increase your financial strength as a couple.
An online life insurance calculator usually recommends a 30-year policy for young married people. Why? It is likely that you both trust each other for some kind of financial contribution – be it big bills or mortgages or other small daily expenses. If you and your partner are in the early 30s, a 30-year term can protect both of you to your early 60's, a time when many people hope to wind down debt and retire on retirement plans. Both spouses need coverage.
At some point your family can also expand. In that case, you want to make sure you and your spouse are protected. Getting a term's life policy when you are young and less likely to suffer from harmful health conditions can save you money in the long run compared to delaying your purchase of cover later.
"I am the main bread win."
Being the foremost breadwinner is a great responsibility. While there is another source of income, your family probably depends on your income for their overall financial well-being. For young families, a 30-year policy can be a perfect choice to protect your income until your children are adults and your partner is in or near retirement.
By the way, even if your spouse is a home parent's stay and does not earn a salary, he or she still needs life insurance. If something happens to your spouse, you may need to hire a nanny or housekeeper to help run the household so you can continue to make money to pay the bills.
Click to learn more about why staying at home parents need life insurance.
"I have a special needs child".
While many parents' needs may be met with a 20-year length, which will often cover their family until the kids are in college, those with a special need child should consider longer coverage. Depending on the nature of your child's needs, it is possible that their health will require you to care immediately.
Lifetime insurance offers an affordable way to help financially protect your family while you are busy saving in emergencies, retirement, and other financial needs. For those in need of special needs, who may need lifelong care, a 30-year-old parent buys more time to create a financial plan for the child's future.
"I have a great debt".
Although housing and family commitments make up the bulk of the family's monthly expenses, do not forget to bill other debts when deciding on a length. Some debts are usually forgiven if you were to die – like federal student loans. However, private student loans and other bad debts are not typically forgiven. These financial obligations can very well be passed on to your co-signer or spouse if something happens to you.
Significant student loans can follow you this year or decades if you pay the minimum amount each month. Make sure, regardless of the length you choose, that your maturity runs until the debts are expected to be paid.
In addition to student loans, you can also have credit card debt, a car loan, personal loan or business debt. Like student loans, the debts of your spouse would become their responsibility at your death. And if you live in a community property state, debts that arose during the marriage – even if they are only with a single wife – can be passed on to the surviving spouse when one of you passes.
While you may have a fixed plan to repay debt, life can track your schedule. A 30-year forward policy would offer a sufficiently long window to settle any outstanding debt with the assurance that the money would be available to repay them if needed.
Benefits of 30-year life insurance
As the various scenarios described here show, many people can benefit from a 30-year policy based on their living conditions. Along with the serenity that all life insurance policies provide, 30-year policies offer other considerations, the boss among whom you lock in a set premium for the entire period of time the policy applies. This level price makes a 30-year policy a fairly smart (and affordable) purchase for those who need coverage for a long time.
Imagine if you could have locked some of these prices 30 years ago:
- A gallon of gas: $ 0.91
- A movie ticket: $ 3.50
- An average new car: $ 10,400
Not so bad, right?
Here's the Haven Term Policy Monthly Rates for Adults in Excellent Health of Different Ages Can Pay a 30-Year Policy:
|Age||Coverage||$ 250,000||$ 500,000||$ 750,000||] $ 1,000,000|
|25||Man||$ 24.49||$ 32.81  $ 46.22  $ 59.62  Female  $ 19.60  ] $ 26,35  $ 36,53  $ 46,71  30  Man  $ 26,53  $ 36,26  $ 51,39  ] $ 66,52  Female  $ 21,52  $ 30,23  $ 42,34  $ 54,46  35  Man  $ 30 , 32  $ 41.42  $ 59.14  $ 76.85|
|Female||$ 25.14||$ 35.40||$ 50.09||$ 64.79|
|Source: Haven Life|
As you can see, things age to calculate the cost of premium payments. But if you are young and in good or excellent health, you can expect to pay less for lifetime insurance in total. Knowing that you have a longer period in which your coverage applies can be much more valuable than any cost savings that you can realize by going for a shorter term.
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Are 30 years life insurance right for you?
When it comes to buying life insurance, you guarantee that your family is adequately protected. A 30-year maturity, in particular, provides a "better-than-forgotten" term of protection that can be until the children are adults, the mortgage loan is paid off and you and your spouse are enjoying retired life. It also gives you many, many years of reasonable life insurance, so you can focus on other things besides insurance, such as building an economic safety net that many of us don't have in our 20s, 30s and 40s.
With the help of online life insurance calculators and through an analysis of family needs, you can easily compare prices and determine if a 30-year life policy is right for your family and budget.
Whatever policy you choose, having life insurance on site is an important part of your overall financial plan. Knowing that you are taking a step in the right direction to financially protect the people you love most is invaluable.
Rebecca Lake is a freelance writer who specializes in personal finance and small business. She lives on the North Carolina coast with her two children.
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Haven Term is a Term Life Insurance Policy (ICC17DTC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111 and offered exclusively by the Haven Life Insurance Agency, LLC. The policy and rider's form numbers and features may vary by state and may not be available in all states. In New York, Haven Term DTC-NY is 1017. Our license number in California is OK71922 and in Arkansas, 100139527.