Life Insurance at 31

Many people begin to seriously consider purchasing life insurance in their early thirties. You envision a good life for your loved ones and you want them to have that good life no matter what happens. Getting life insurance at 31, while you are young and healthy, is the prudent move. You get the coverage you need at a low rate, possibly saving thousands of dollars in premiums over the course of your policy.

Life insurance is one of the best safety nets that you can ever purchase for your loved ones. If something tragic were to happen to you, and you didn’t have life insurance coverage, your family would be left with a massive amount of debts and other final expenses.

When you apply for life insurance coverage, the insurance company is going to look at dozens and dozens of different factors to decide how much they are going to charge you for insurance coverage. One of the biggest factors that they are going to look at is your health and any pre-existing conditions that you may have.

If you have health issues that you are concerned about, don’t worry, we often get clients with “impaired risk” standard and even preferred rates.

Life insurance can play an important role in your plans for your family’s future. While you may know that this is true, like many you probably have some insurance at 31

  • What is term versus permanent life insurance?
  • Why do I need life insurance?
  • How much life insurance do I need?
  • How much will my life insurance cost?

Keep reading and each of these questions will be covered briefly plus we’ll include some sample premiums for 31-year-old men and women to give you an idea of how affordable life insurance can be. To get the best deal on the life insurance you and your loved ones need you want an experienced independent agent in your corner. Ogletree Financial Services can guide you through the application process and make sure you get the right policy at the lowest premium.

What is term versus permanent life insurance?
Term and permanent policies are the two basic types of life insurance. Both types of policies offer a death benefit (cash payout) payable to the policy’s beneficiaries upon the death of the person covered by the policy. Term life insurance pays this benefit for a certain period of time, the term. Permanent life insurance covers a person’s entire life, paying a death benefit whenever they may pass.

If you’re looking to get the most affordable life insurance coverage possible, then term is going to be the best option. Because term insurance coverage is only effective for a certain period of time, they are going to be drastically cheaper than other options.

Permanent life insurance policies include a cash accumulation aspect. This can make life insurance an important part of your investment portfolio. We are mainly concerned with term policies in this article and the sample premiums shown are for term insurance. Still, we do offer permanent life insurance policies at Ogletree Financial Services and we mention a few of many excellent articles we have written about a type of permanent life insurance called indexed universal life, or IUL.

Permanent life insurance is an excellent option for anyone that doesn’t want to worry about having to reapply for coverage in the future. Because these plans are never going to expire, they are going to be more expensive than other options.

Why do I need life insurance at 31?
The primary concern for many clients is income replacement. You want to be sure that if you were to pass, your family would not suffer financially. A life insurance policy can make sure that your loved ones will enjoy the standard of living you have worked hard to provide, even after you are gone.

Your children’s college education may also be something to consider when you purchase life insurance. The cost of higher education has been increasing at an alarming rate. No matter the cost, you plan to financially support your children’s aspirations. Many clients allow for college expenses when determining the face value of their life insurance policy. Read “4 key features of Indexed Universal Life for College Planning” to learn how a permanent life insurance policy can cover your children’s college education expenses.

Many small business owners purchase life insurance to protect the integrity of their Life insurance at 31business in case an owner or partner were to die prematurely. Without this support, a small organization is often vulnerable to bankruptcy in this situation. Sometimes a very affordable life insurance policy can see a small business through such a crisis. “Funding buy sell agreements with indexed universal life insuranceis a great article about IULs and mortgage coverage.

Many thirty-one year olds are new homeowners or contemplating home ownership. A mortgage or other large debt is often insured with a life insurance policy. You don’t want your loved ones to face a large debt of tens, if not hundreds, of thousands of dollars on top of the immense difficulty of losing a loved one. A mortgage can be covered with a simple term policy or a permanent policy. Our article, “Indexed Universal Life for Mortgage Protection?discusses how a permanent policy can be used to cover your mortgage.

How much life insurance do I need?
The level of benefit required for income replacement is commonly determined by dividing the amount of yearly income your family would need if you were to die by an interest rate you could count on that benefit earning.

For an example let’s use a 4% interest rate.

Also, it is important to determine how much income your family would need in this situation. Depending on your family, it may not be 100% of your income. Let’s say you make $60,000 a year but your family will only need $35,000 a year if you were to pass.

You divide 35k by 4%    $35,000 ÷ .04  =  $875,000 

So, to guarantee an income $35,000 a year for your family you would need to purchase a life insurance policy with a face value of $875,000.

This amount would not include any benefit desired to cover education expenses, outstanding debt or final expenses. You would purchase a separate life insurance policy for your small business, as would your partners. The amount of these coverages would depend on your particular circumstances.

How much will my life insurance cost?Life insurance at 31
Most people are surprised at the affordability of term life insurance. Your premium will depend on a variety of factors such as your age, your sex, your occupation, your health (including your health history and family health history), your weight, whether or not you drink alcohol or smoke cigarettes, along with a variety of other variables.

Applying for life insurance with the guidance of an independent agency like Ogletree Financial Services is the best way be certain you get the right life insurance coverage and at the lowest rates available.

We’ve set up four tables with sample monthly life insurance premiums for a non-smoking, 31-year-old male and female. These figures are for term life insurance. Term lengths of 10, 15, 20, 25, and 30 years, with face values of $100,000, $250,000, $500,00 and $1,000,000 are shown. These quotes are only sample premiums. Your premium will be determined by your unique risk as assessed by life insurance underwriters and will not be the same as these figures.

 31 -year-old Male Preferred Plus Health Category
Level Term Life Policy – Sample Monthly Premiums – Non-smoker

$100,000 $250,000 $500,000 $1,000,000
10-year $8.01 $10.73 $15.48 $23.31
15-year $8.44 $10.94 $15.92 $26.30
20-year $9.49 $13.54 $21.11 $36.68
25-year $12.05 $18.29 $29.32 $52.25
30-year $12.91 $21.08 $34.84 $62.79

31-year-old Male Standard Health Category
Level Term Life Policy – Sample Monthly Premiums – Non-smoker

$100,000 $250,000 $500,000 $1,000,000
10-year $11.45 $17.27 $27.53 $48.17
15-year $12.39 $20.02 $34.08 $60.90
20-year $14.11 $23.70 $41.35 $74.27
25-year $18.16 $34.08 $56.57 $107.61
30-year $19.36 $38.28 $69.60 $130.10

31-year-old Female Preferred Plus Health Category
Level Term Life Policy – Sample Monthly Premiums – Non-smoker

$100,000 $250,000 $500,000 $1,000,000
10-year $7.41 $9.62 $13.13 $20.12
15-year $7.84 $10.51 $15.05 $24.57
20-year $8.70 $12.24 $18.51 $30.79
25-year $11.02 $15.92 $25.00 $44.46
30-year $11.71 $17.86 $29.25 $50.75

31-year-old Female Standard Health Category
Level Term Life Policy – Sample Monthly Premiums – Non-smoker

$100,000 $250,000 $500,000 $1,000,000
10-year $10.24 $14.63 $23.98 $40.43
15-year $11.53 $18.07 $30.45 $54.81
20-year $12.31 $20.02 $34.08 $61.76
25-year $15.32 $26.94 $46.88 $88.58
 30-year $16.95 $30.54 $51.33 $96.57

Hopefully, these figures give you an idea of the range of premiums a thirty-one-old might pay for a fully-underwritten level term life insurance policy.

Life insurance at 31.

Your decision to purchase life insurance is basically for the sake of the ones you love and your own peace of mind and satisfaction that you have done everything you can to provide the best life for them possible. Get in touch with Ogletree Financial services today to get the protection your family deserves.

If you have any questions about life insurance coverage at 31, or the available options to you, please contact one of our agents today. We would love to answer those questions and connect you with the best possible plan. You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to get the life insurance coverage possible.

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About Ogletree Financial Services
About Ogletree Financial Services

As independent life insurance agents, we specialize in finding the best life insurance rates and policies for our clients.  Our customers are located all over the USA.  If you would like a personalized life insurance quote, you can start here on our website or give us a call at 1-800-712-8519.

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