How To Choose The Right Life Insurance Policy At Any Age

Shawn Plummer

CEO, The Annuity Expert

As you get older, it becomes increasingly important to have a life insurance policy in place. Then, if something happens to you, your loved ones will be able to continue living their lives without worrying about money. However, choosing the right life insurance policy can be difficult – especially if you are not sure what you are looking for. This guide will outline the different life insurance policies available and help you decide which one is right for you.

What Age Should You Get Life Insurance?

While there is no one-size-fits-all answer to this question, there are a few things to consider when deciding when to get life insurance.

One factor to keep in mind is your stage of life. For example, if you are young and single, you may not need as much coverage as someone married with children. However, if you have dependents who rely on your income, life insurance can provide financial security in the event of your death.

Another thing to consider is your health. If you have a family history of health problems, you may want to get life insurance at an earlier age. Life insurance rates are based partly on your health, so getting coverage is essential while you are still in good health.

The best time to get life insurance is when you need it. If you have dependents or debts that would be difficult to pay off in the event of your death, life insurance can give you and your loved one peace of mind.

What kinds of life insurance plans are available to me?

There are two types of life insurance to explore: term and permanent.

Term life insurance

A term life insurance policy lasts for a specified number of years (the term) as long as the premium is paid. When the period runs out, your coverage under this plan terminates. To keep covered, you usually have two alternatives:

A life insurance policy’s death benefit is a lump sum of cash paid to a beneficiary by the life insurance company when you die.

The payout may be used for various things, including burial costs, mortgage, debt payments, and living expenses for your family. The death payment is generally tax-free. Term life insurance typically includes the following features:

  • The coverage is affordable
  • A tax-free death benefit for your beneficiary

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Permanent life insurance

“Permanent” life insurance refers to insurance policies that do not expire. Unlike term life insurance, which provides death benefit protection for a set number of years, permanent life insurance can last the insured person’s lifetime as long as premiums are paid according to the terms of the policy.

Permanent life insurance includes:

These plans might also provide the opportunity to accumulate value. For example, permanent life insurance cash values grow tax-deferred, so you won’t have to pay taxes on any gains as long as your policy is in force. In addition, policyholders may withdraw cash value for various reasons, including creating a retirement fund, increasing the death benefit, or borrowing against their coverage to help supplement retirement income.

Permanent life insurance costs more in premiums than term life insurance, but it comes with the following benefits:

  • There is no end date on this policy. You may keep it as long as you make your premium payments.
  • Potential to grow the cash value.
  • Premiums are generally more costly than term policy premiums.

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Life insurance In Your Twenties

You’re typically in better health and face fewer medical concerns in your twenties, so the risk that insurance companies will cover you is quite low. This typically implies that life insurance rates will be at their lowest. So even if it’s only a tiny policy, buying life insurance early may be a good idea.

Life insurance benefits in your twenties can:

  • Offer reduced rates.
  • Pay for your funeral expenses.
  • Assist your beneficiary in paying off any debt, such as a mortgage or credit card bills. 
  • You may use your extra cash to help pay off loans you don’t want your co-signer stuck with if you die.
  • If you die, your beneficiary will be financially secure.

Most people in their twenties could benefit from term life insurance since it is simple and reasonably priced. If you’re on a tight budget, term life insurance may be an excellent fit.

Life insurance In Your Thirties

If you bought a policy in your twenties, now may be an excellent time to examine it. You may have more financial obligations as you grow older. In addition, many people are married with a kid and perhaps own a house at this age, so life insurance can become essential for protecting your family and assets.

How much insurance you need is generally determined based on your family’s needs. It’s critical to think about what would happen if something happened to you if you have children. Consider the cost of caring for your kid when determining how much life insurance is required.

  • What are your essential monthly bills and expenses? 
  • How much does it cost to maintain your current lifestyle

Once you’ve figured out your costs, online life insurance calculators can assist you in determining how much insurance you’ll require and what your rate will be.

Life insurance benefits in your thirties can:

  • Money for funeral costs might quickly mount up to several thousands of dollars.
  • Offer a solution to ensure your beneficiary is not burdened with your debt. A mortgage, credit card debt, or a student loan are examples of this.
  • Offer protection for a person who depends on your earnings.
  • Pays for childcare. Assisting with child care expenses is a plus.

Life Insurance In Your Forties and Fifties

If you already have a policy through your job, evaluate it, make modifications, and consider adding additional insurance. Is your employer’s life insurance enough? Even if you don’t have a policy, life insurance premiums will typically rise with age, but they may still be very reasonable even if you don’t have one. It would be best to research what insurers provide and which options best suit your family’s requirements.

You might consider permanent life insurance to ensure your loved ones are financially secure. For Generation Xers, this benefit may help you save for retirement and plan your estate more efficiently.

If you have no dependents or don’t have much savings to cover debts or final expenses, term life insurance coverage may not be as cost-effective. However, purchasing additional life insurance coverage may be the best option if you have family members who rely on your income.

Life insurance benefits in your forties and fifties can:

  • Assist your spouse or companion who is dependent on your salary.
  • Make sure your kids have access to the funds they need for college.
  • Provide money for final expenses such as funeral and burial costs. 
  • If you’re a homeowner who has to pay your mortgage, credit card debt, or other outstanding obligations, the proceeds may be able to assist.
  • It creates a foundation for your loved ones to inherit.
  • Pay for estate taxes
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Life Insurance In Your Sixties And Older

It’s never too late to buy life insurance when you reach your sixties, and it may be a good idea to reassess your financial situation before purchasing a policy. A term life insurance policy might be an excellent, low-cost alternative. In addition, a term life insurance policy may be an option if you’re in good health in your sixties and even seventies. Unfortunately, it becomes more challenging to obtain term life coverage as you approach age 80.

When you buy life insurance with a future retirement, it may be simpler for your family to handle money when you die. It can also assist protect your money, managing your taxes, and allowing you to build cash value which you can use for various purposes and activities.

Life insurance benefits in your sixties and older:

  • Provide an inheritance for your beneficiaries.
  • Pays debts or bills your loved ones must pay.
  • Pays medical bills or funeral costs.
  • Pay for estate taxes.

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Frequently Asked Questions

At what age do I not need life insurance?

You may not need life insurance once you reach retirement age and have a solid financial foundation. However, you may still want to consider purchasing life insurance to cover final expenses, such as funeral costs.

What is the oldest age you can get life insurance?

The oldest age you can get life insurance is typically around 85.

What would happen if you don’t have life insurance?

If you don’t have life insurance and die, your loved ones will be responsible for paying off your debts and covering any final expenses, such as funeral costs.

Do life insurance premiums increase with age?

In general, life insurance becomes more expensive as we age. This is because the older we get, the greater the risk of death.

Can a 90-year-old get life insurance?

No, a 90-year-old cannot get life insurance. Applicants under age 85 can qualify for life insurance, but most companies will not offer a policy at that age.

Can an 84-year-old get life insurance?

Yes, life insurance is available to individuals over the age of 84. The premiums, on the other hand, will be higher than for someone younger.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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