Life insurance at 32

We see a lot of young families, in their early thirties, looking to life insurance coverage to secure their financial future. They want to be sure that no matter what happens, their spouse and children will not have to worry about money. You have made the wise move, considering life insurance at 32 while you are young and healthy. Life insurance premiums increase every year you wait to get coverage. And if you were to develop a health condition before you bought a policy, your life insurance costs might increase even more.

Life insurance is an important part of planning for the future of your family. But you probably have questions. Most people do. Four basic questions most clients want answered are:

  • 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?

We’ll quickly cover these topics to get you started and show you some sample quotes for 32-year-olds to demonstrate to you that life insurance really can be affordable. To make sure you and your family get the life insurance you need at the lowest rate, you want to have an experienced agent by your side. Ogletree Financial Services can guide you through the application process. We represent over thirty top insurers and we will present your risk to the right company to get the best deal on the policy you need.

What is term versus permanent life insurance?
Investopedia states that term life insurance “policies provide a stated benefit upon the death of the policy owner, provided that the death occurs within a specific time period. However, the policy does not provide any returns beyond the stated benefit, unlike permanent life insurance policies, which have a savings component that can be used for wealth accumulation.”

While this article is primarily concerned with term life insurance and the premiums shown later are for term policies, we do refer you to a few articles we have about the advantages of a type of permanent life insurance called indexed universal life, or IUL.

Why do I need life insurance at 32?
Income replacement is the first reason many clients say they are interested in life insurance. If the worst were to happen to you, you don’t want your family to suffer financially. You want them to always rely on the income you provide and live the quality of life you work hard for them to have.

Many clients are also interested in purchasing life insurance to help pay for their children’s college education. You want to make sure that even if you are gone, your children will enjoy the benefits of higher education. If you are interested in an IUL solution to address your children’s college education expenses, read our article, “4 key features of Indexed Universal Life for College Planning.”Life insurance at 32

Small business owners often purchase life insurance to protect themselves and their business in case a partner were to die prematurely. If tragedy were to strike, this protection could be the difference between a restaurant or other small business going bankrupt or continuing to succeed. This type of policy provides a death benefit to the surviving partner that allows them to pay off their partner’s heirs for their loved one’s portion of the business. Our article, “Funding Buy Sell Agreements with Indexed Universal Life Insurance” discusses a permanent policy solution for this financial obligation.

At 32, you may be thinking about buying a home. Many clients with a mortgage or other large debt purchase life insurance to avoid their loved ones being saddled with this burden in the event of their unexpected passing. To learn how a permanent life policy can cover your mortgage read our article “Indexed Universal Life for Mortgage Protection?

Some clients are only interested in purchasing life insurance to cover final expenses, outstanding medical bills, credit card debt and other smaller expenses, when they die. These clients can purchase low cost policies with smaller death benefits. A guaranteed issue policy that requires no medical exam may even be an option in these situations.

How much life insurance do I need?
For purposes of income replacement, sometimes a very simple formula is used to decide how much life insurance coverage is necessary. First, decide the yearly income your family would need to continue the quality of life you are providing. Next, divide that figure by an interest rate you can count on the benefit (life insurance pay out) your loved ones will receive will be able to earn each year.

For example, let’s imagine you make $45,000 a year and if you were to die unexpectedly, your spouse would be working part-time and your family would need a supplement of $25,000 a year to maintain their current lifestyle.

We will use a conservative interest rate of 4%.

                                          $25,000
Here’s the math!              ———–   =   $625,000
                                              .04   

This means a benefit, or “nest egg,” of $625,000 will earn in interest the $25,000 a year your family needs.

As far as college education, final expenses and your mortgage are concerned, a conversation with your independent agent will be required to assess these personal life insurance needs. Few people have the financial acumen and required knowledge to confidently navigate the life insurance marketplace and the complicated application process. Partner with an independent agent like Ogletree Financial Services to make sure this important financial move is done right.

How much will my life insurance cost?Life insurance at 32
Term life insurance is surprisingly affordable! Many are surprised that they can get the life insurance coverage they need without having to slash the family budget.

Even if you have health concerns we can get the life insurance policy you need at rates often very similar to the ones shown here. We deal with many individuals with “impaired risk” and know which carriers will most favorably insure these clients.

Following are four tables with sample monthly life insurance premiums. The tables presented are for a non-smoking, 30-year-old male and female, at a preferred plus rating and a standard rating. The figures shown 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 are only example premiums obtained from some of the life insurance companies we represent at Ogletree Financial Services. Your actual premium will be based on your unique risk as underwritten by life insurance companies, and will not be the same as these estimates.

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

$100,000 $250,000 $500,000 $1,000,000
10-year $8.09 $10.73 $15.48 $23.31
15-year $8.61 $11.16 $15.92 $26.30
20-year $9.50 $13.75 $21.54 $37.54
25-year $12.39 $18.73 $30.62 $53.98
30-year $13.17 $21.51 $35.81 $64.36

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

$100,000 $250,000 $500,000 $1,000,000
10-year $11.53 $17.64 $27.96 $49.65
15-year $12.48 $20.24 $34.51 $61.25
20-year $14.29 $23.92 $41.87 $76.47
25-year $18.59 $34.51 $57.44 $109.34
30-year $20.05 $39.05 $71.71 $131.83

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

$100,000 $250,000 $500,000 $1,000,000
10-year $7.49 $9.84 $13.13 $20.12
15-year $7.88 $10.73 $15.48 $25.37
20-year $8.70 $12.24 $18.72 $31.17
25-year $11.28 $16.13 $25.86 $45.33
30-year $11.79 $18.29 $30.11 $52.47

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

$100,000 $250,000 $500,000 $1,000,000
10-year $10.33 $14.83 $23.23 $40.43
15-year $11.62 $18.29 $30.54 $55.04
20-year $12.57 $20.67 $35.38 $64.36
25-year $15.58 $27.59 $48.35 $91.17
30-year $17.38 $31.18 $55.25 $103.28

These numbers should let you know the ball-park for monthly premiums a thirty-two-year-old may pay for a fully-underwritten level term life insurance policy.

Life insurance at 32

Life insurance is an important part of planning for your family’s future. You want your loved ones to always enjoy the quality of life you provide for them, no matter what happens. The death of a parent, spouse and family provider is already bad enough without financial difficulty. Life insurance can guarantee that in the event of such a tragedy your loved ones will have the financial resources to continue their lives without that burden.

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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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