Life insurance at 34

Early to mid-thirties is the time many young families begin to consider life insurance coverage. Many have children and want to be sure their financial future will be secure. You work hard to build a certain standard of living for your loved ones and you want to know that standard of living will always be there. Seeking life insurance at 34 is a smart move.

Getting life insurance while you are still young is important. Yes, thirty-four is definitely still young and life insurance companies know that. Life insurance will never again be more affordable for you than right now.

Most people have questions when first buying life insurance. At Ogletree Financial Services we are ready for all of them, but in this article we will touch on four basic questions that we hear a lot:Life insurance at 34

  • 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?

Buying life insurance is a complicated process. This brief introduction should get you started towards obtaining the life insurance coverage you and your family need. Absolutely, this application process is best negotiated with the help of a professional independent agent. Buying life insurance is an important part of your family’s future and the help of someone with financial skills and experience in the life insurance marketplace is vital. Ogletree Financial Services represents over thirty top insurers and together with your agent, you will select the one that is right for you.

What is term versus permanent life insurance?
Term life insurance policies cover the life of the inured for a specific period of time. This term usually lasts as long as the need for the insurance exists. For example, let’s say you have decided to insure your family until your children have graduated from college. If your youngest is five years old, you’re looking at a 20-year policy. Some people purchase term life policies that run until their retirement.

CNN Money’s “Ultimate guide to retirement” says that term life “insurance is basic, inexpensive and easy to understand. It gives you all the coverage you need and none that you don’t.” This is true and term life insurance is often the best solution to our clients life insurance needs.

We also have many clients who opt for permanent life insurance which does not expire and includes a cash investment aspect. These policies are for people who want their life insurance policy to serve as security for their family’s financial future and as an important part of their investment portfolio.

We mainly consider term life in this article but we do refer you to a few articles that consider a type of permanent life insurance called indexed universal life (IUL) and how this type of coverage might work for you.

Why do I need life insurance?
Some people may be imagining a life insurance policy that only covers the deceased final expenses. While we do write some smaller policies, most people want their life insurance coverage to do much more for them than that. We will touch briefly on four of the top reasons we see clients purchasing life insurance:

  • income replacement
  • college expenses
  • small business coverage
  • mortgages and other large debts

Income replacement is the big one. You want to make sure that the income you represent to your family will be there for them if something were to happen to you. An extremely difficult situation for a family becomes exponentially worse when the additional strain of a large financial burden is bearing down on them.

Many parents have plans to send their children to college after high school. They consider this an important part of how they will support their children as they enter adulthood. This is something you would want for your children no matter what may happen to you. For this reason, many clients include college education expenses in their life insurance calculations.

Read about an IUL solution to college education expenses: “4 key features of Indexed Universal Life for College Planning.”

Partners in a small business will often purchase life insurance policies on each other. These policies enable the surviving partner to use the policy benefit to buy out their partner’s half of the business from their partner’s heirs. This type of policy provides an additional cash payout to your loved ones and secures the future of your business.

An IUL policy may work for your small business. Learn how here: ”

At 34, you may be considering buying a house, requiring that you enter into a large Life insurance at 34mortgage. In addition to income replacement, life insurance coverage to pay off any large debts is very important to many clients. You don’t want your loved ones to be left responsible for thousands of dollars in unpaid debt after you have gone.

Our article “Indexed Universal Life for Mortgage Protection?” looks at IUL policies and mortgage insurance.

How much life insurance do I need?
Well, at this point, being able to work with a qualified independent agent is becoming more and more important. Mortgages are often insured with a separate policy with a term that coincides with the term of the debt being insured. Education expenses will vary greatly from family to family, again this is one you need to work out with your agent. The level of coverage for partners of a small business will be some amount determined to be sufficient to buy out a deceased partner’s interest in the business.

Again, income replacement is the big one. We’ll look at a simple way to calculate how much benefit (an amount to be paid to your named beneficiaries upon your death) you will need to generate a desired amount of yearly income. The amount of yearly income your family would need may be the full income you represented to your family. Or the yearly income you decide on might be a smaller amount that would be necessary as additional income so that your family could continue to live the quality of life you have worked hard for them to have.

Let’s say you make $65,000 a year and have decided that if you were to die, your family would require a yearly income of $40,000 to continue with their current standard of living.

Now you want to calculate how much of a benefit your policy will need to earn in interest the amount of yearly income you desire. We’ll choose a conservative interest rate of 4%. We use the decimal equivalent of 4%, 0.04, in our calculations.

The math to do this is simple:

                                       $40,000
required benefit    =    —————   =   $1,000,000
                                           0.04

This means that if you would like your family to have a yearly income of $40,000, a life insurance benefit of around $1,000,000 would be required. We know these number are beginning to get big but know that a 20-year term policy for a 34-year-old women at a preferred plus health rating with a face value (amount to be paid to your family upon your death) of $1,000,000 will have a monthly premium of less than $35.

A life insurance policy is a relatively small investment for the significant value of your family’s financial security, and your peace of mind.

How much will my life insurance cost?
Probably not very much. Healthy thirty-four year olds pay some of the lowest life insurance premiums out there. At Ogletree Financial Services, we even get clients with health conditions, also known as impaired risk, affordable life insurance policies for the coverage they need.

We have set up four tables with sample monthly life insurance premiums for a non-smoking, 34-year-old male and female. The quoted figures are for term life insurance with one table containing preferred plus health category premiums the other with standard health category premiums.

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 sample premiums. Your actual premium will be based on your unique risk and how it is assessed by life insurance companies.

34-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 $8.27 $10.49 $14.76 $23.31
15-year $8.95 $11.59 $16.78 $28.03
20-year $9.54 $13.75 $21.54 $37.54
25-year $13.00 $20.02 $33.65 $59.17
30-year $13.68 $22.58 $37.97 $67.82

34-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 $11.71 $17.86 $29.95 $52.25
15-year $12.74 $20.24 $34.51 $62.20
20-year $14.54 $24.78 $43.60 $80.72
25-year $19.36 $35.81 $60.72 $114.53
30-year $21.42 $40.64 $75.17 $138.25

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

$100,000 $250,000 $500,000 $1,000,000
10-year $7.58 $9.84 $13.56 $20.12
15-year $7.88 $10.73 $15.92 $25.25
20-year $8.78 $12.67 $19.60 $33.25
25-year $11.68 $17.00 $27.59 $48.79
30-year $11.96 $19.16 $31.92 $56.77

34-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 10.42 $15.06 $23.23 $40.43
15-year $11.71 $18.56 $31.40 $55.91
20-year $13.17 $22.19 $38.41 $69.55
25-year $16.18 $28.89 $51.38 $97.19
 30-year $18.33 $32.69 $59.17 $110.20

Hopefully, these figures give you a ball-park idea of the premiums a thirty-four-year-old man or woman can expect to pay for a fully-underwritten level term life insurance policy.

Life insurance at 34.

You are making an important decision to guarantee the future financial security of those you love the most. You have decided to arrange for the guidance of a professional and at Ogletree Financial Services we have you covered. Our experience, knowledge, access to over thirty top insurers and committed, personal devotion to our clients can go to work for you today.

Getting started is easy!
Give us call at 1-800-712-8519!

Leave us a message on our contact page!
Use the free term quote application on the left side of this page!

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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