As you get older, life insurance rates tend to go up. So, the earlier you buy, the quicker you can secure the best premium—and save the most money over time.
Getting life insurance early is a smart move to snag the best rates. On average, the cost can go up by 8% to 12% each year you wait. But once you sign your policy, your rate is locked in and won't change for the term.
For instance, a healthy 40-year-old nonsmoking man could get a 20-year term policy with $1 million coverage for $2,172 a year*. If he waits until he's 41, the cost jumps to $2,340 a year, and if he waits another year, it goes up to $2,508 annually. Get a qoute today!
As you get older, your life insurance costs tend to go up.
For example, a 10-year term life insurance policy with a $1 million death benefit for someone in good health would cost a 35-year-old nonsmoker about $65 a month. But if you wait until you're 45, that same policy would cost $135 a month. So, by getting your policy at 35 instead of 45, you could save $840 a year over the life of your policy.
If you wait to buy life insurance until you have kids, you might miss out on locking in a lower premium. Even if you don’t have little ones to look after yet, life insurance can still help cover things like personal debts, medical bills, your home mortgage, lost wages, and even funeral costs.
Your health plays a big role in determining your premiums. The healthier you are, the less you pay, so getting life insurance while you’re young and healthy can be a smart move. As you get older, the chances of developing health issues like cancer or diabetes increase, which can lead to higher premiums and sometimes make it harder to get coverage.
Getting life insurance early on helps keep you and your loved ones safe from any surprises life might throw your way.
Employer-provided life insurance is a nice perk, but these policies often don't give you enough coverage. They usually only cover one to two times your annual salary, while financial experts suggest you aim for about ten times your salary. Plus, if you retire, get laid off, or switch jobs, you might lose that coverage. And if that happens when you're older or have health issues, getting new coverage can be pricier and trickier. Having your own policy is a great way to make sure you and your loved ones are protected no matter what life throws your way.
*Please note that the quotes provided are based on data from 2020 and are intended for illustrative purposes only. Individual quotes may vary. For further information, refer to the article "How Age Affects Life Insurance" on Investopedia: https://www.investopedia.com/articles/personal-finance/022615/how-age-affects-life-insurance-rates.asp