Life insurance at 33

It is very common for couples in their early thirties, who have young children or are planning on starting a family, to consider life insurance to protect their future financial security. You are working hard to build a certain quality of life for your loved ones and you want to be sure they will have that life even if you were to die unexpectedly. Life insurance at 33 is a good call.

It is important to begin your life insurance coverage at a young age. Premiums go up every year you get older and do not obtain the life insurance you need. Any problems with your health could also result in increased life insurance costs if you do not already have a policy in place.

Getting life insurance now will lock in your rates for the term of your policy based on your present age and health status.

As you plan for your family’s financial future, you probably have some questions about life insurance. Everyone does. We’d like to briefly address four basic questions we get all the time:

  • 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?

This introduction to life insurance should get most people in their early thirties started toward getting the coverage they need. You are in the right place start that journey. Ogletree Financial Services can be your guide through the often complicated life insurance application process. Our knowledge, experience, and access to over thirty top life insuranceLife insurance at 33 companies, coupled with personal attention to each client’s needs and unique risk, has insured thousands across the country.

What is term versus permanent life insurance?
Term life insurance policies cover an insured’s life for the duration, or term, of the insurance contract. Usually, the end of the term coincides with the end of the need for the insurance. A policy for a mortgage would match the term of the loan. A policy to cover your family through your children’s college education may require a 20 or 25-year term life insurance policy.

Permanent life insurance covers the entire life of the insured and does not expire as long as the premiums are paid. Additionally, permanent life insurance includes a cash accumulation component. This makes your life insurance policy a protection for your family’s future and a valuable financial asset.

Which type of policy is right for you is something to decide with the help of your independent agent. This article primarily addresses term life insurance policies, but we do suggest a few informative articles we have concerning permanent life insurance.

Why do I need life insurance?
We’ll touch on four of the main reasons why our clients seek life insurance coverage: income replacement, college education expenses, mortgages and other debts, and small business policies. These reasons are concerned with a family’s financial needs beyond an insured loved one’s final expenses.

The main reason clients seek life insurance is income replacement. As difficult a time as the death of a parent and spouse can be, it becomes significantly worse if your loved ones are also dealing with a life changing financial burden. Making sure that the income you represented to your family will always be there will give you the peace of mind that they will continue to take comfort in the standard of living you are working hard for them to enjoy.

Clients with children often account for the high cost of college education when deciding on the benefit their family will receive in the unfortunate event of their passing. Financing your children’s college education may be something you plan to do and want to be sure Life insurance at 33goes as planned no matter what happens to you.

Small business owners sometimes buy life insurance policies that cover each other’s lives. If one partner dies unexpectedly, the other partner can use the proceeds of the policy to buy out the deceased partner’s interest in the business. The benefit of this policy helps a business stay afloat and delivers a cash payout to the deceased’s loved ones. Our article “Funding buy sell agreements with indexed universal life insurance” discusses a type of permanent life insurance called Indexed Universal Life (IUL) and small business financial arrangements.

Sometimes clients purchase a life insurance policy to cover a large debt like a mortgage. The benefit (policy face value) of this policy would pay off the mortgage and ensure that the loved ones of the deceased would not be saddled with this burden. An IUL policy can also work for your mortgage. Read “Indexed Universal Life for Mortgage Protection?” and find out how.

How much life insurance do I need?
How much life insurance you need to help your family to cover a mortgage or fund your children’s higher education will depend on your personal goals and life circumstances. Our article “4 key features of Indexed Universal Life for College Planning” examines IUL policies and college planning.

If you are a partner in a small business, you would buy a separate policy along with your partner. The face value, or benefit, of this policy would be a previously decided upon amount required to purchase the other partner’s interest in the business.

When deciding on what size benefit (payout from your life insurance policy) is needed to replace the income you provide for your family you can use a simple formula to get an idea of what this number will be. The idea is to leave enough of a “nest egg” to earn in interest the yearly income your family will need to continue the lifestyle to which they have become accustomed.

First, decide oLife insurance at 33n how much income your family will need. Depending on your spouse’s future income potential this may be only a portion of your actual income. Next, determine what size benefit is necessary to earn the yearly income you have decided upon. It is best to use a conservative interest rate like 4% for your calculations.

Lastly, you divide the desired yearly income by the interest rate.

For example, if you decide your family would need a yearly income of $25,000

                                                           $25,000
The math looks like this      ⇒        ————      =     $625,000
                                                               .04

So, for your family to receive a yearly income of $25,000, you would need a life insurance benefit of $625,000.

Deciding on a face value for your life insurance policy will require some homework with the help of an experienced independent agent. Some clients even decide to purchase more than one life insurance policy. There are a lot of choices to be made. Ogletree Financial Services can help you make the right decisions and get you the right policy as affordably as possible.

How much will my life insurance cost?Life insurance at 33
At 33, if you are in good health your life insurance policy will be extremely affordable. Especially if you team up with the experts at Ogletree Financial Services. We represent over thirty top insurers and can evaluate your unique risk and pair you with the best life insurance carrier for you and your family.

Check out these four tables with sample monthly life insurance premiums for a non-smoking, 33-year-old male and female. These figures are for term life insurance. One table is for a preferred plus risk rating and one table is for a standard risk rating.

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 sample premiums. Your premium will be based on how your risk is underwritten by life insurance companies.

33-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 $8.18 $10.94 $14.78 $23.31
15-year $8.78 $11.37 $16.35 $27.16
20-year $9.52 $13.75 $21.54 $37.54
25-year $12.65 $19.38 $31.92 $56.57
30-year $13.43 $21.97 $36.68 $66.09

33-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 $11.62 $17.85 $28.82 $50.75
15-year $12.65 $20.24 $34.51 $61.54
20-year $14.37 $24.35 $42.73 $78.58
25-year $18.93 $35.16 $58.73 $111.93
30-year $20.74 $39.78 $73.44 $135.29

33-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 $13.56 $20.12
15-year $7.88 $10.73 $16.10 $26.25
20-year $8.78 $12.38 $19.25 $32.37
25-year $11.45 $16.56 $26.73 $47.06
30-year $11.88 $18.73 $31.05 $54.84

33-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 $14.84 $23.23 $40.43
15-year $11.62 $18.29 $30.54 $55.04
20-year $12.91 $21.32 $36.68 $66.95
25-year $15.92 $28.24 $49.65 $93.77
30-year $17.90 $31.92 $57.44 $106.74

Hopefully, these figures give you a sense of the range of premiums a thirty-three-year-old can expect to pay for a fully-underwritten level term life insurance policy.

Life insurance at 33

You should have a clearer idea now of what life insurance is all about and why it can be such an important part of planning for your family’s future. Life insurance is the best way to ensure that your loved ones will always enjoy the quality of life you work so hard for.

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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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