Life Insurance at 35

Many couples first seriously consider life insurance in their mid-thirties. You are old enough now to know that unexpected tragedy is a reality you want to be prepared for. Building a future for your family is the most important thing you do and you want to make certain that the future you envision for your loved ones will be true even if the worst were to happen to you. Life insurance at 35 is a good decision for your family and your finances.

At 35, you will still be getting extremely affordable life insurance rates. You may be surprised at how little your family budget will be affected when you purchase a life insurance policy. Getting your coverage while you are young and healthy is the smart move. In ten years when you are 45 your premiums will be significantly higher and any health issues will further complicate the matter.

Life insurance is one of the most important purchases that you will ever make for your loved ones. It’s one of the only ways that you can ensure that your family members have the money that they need, even if something tragic were to happen to you.

One of the most common reasons that Americans don’t have life insurance is because they assume that it’s too expensive to fit in their budget, but that couldn’t be further from the truth. There are several ways that you can get affordable coverage to give your family the insurance protection that they need.

In this article we will address four basic questions many clients who are new to life insurance want answered.

  • 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?

Each of these questions we will be addressed briefly, giving you a basic understanding of life insurance. Since you are reading this, you have probably made the smart move and have decided to go with a qualified independent agent to ensure that you make the right decisions as you apply for life insurance coverage.

Ogletree Financial Services can help you step-by-step through the application process. We represent over thirty top insurers and we determine which company will underwrite your risk most favorably to get you the best deal on the life insurance coverage you and your family need.

What is Term versus Permanent Life Insurance?

The Forbes.com article Term Vs. Perm (Life Insurance) In 90 Seconds begins, “The battle over term versus permanent life insurance need not be a battle—there are appropriate uses for both of them.” This is an important point. The variety of term and permanent life insurance policies have evolved to meet the unique coverage needs of millions of people.

A simple and surprisingly affordable term policy may be right for you and your family. Term life insurance pays your beneficiaries if you die within the term of your policy. The “term” of a term policy usually coincides with the length of time you will have the financial obligation being insured.

Permanent life insurance never expires and has attached a cash accumulation feature. These policies are for clients looking to combine the death benefit of a term policy with an interest earning cash account. We have many clients whose permanent life insurance polices are an important part of their financial portfolio.

With whole life insurance plans, they are never going to expire, which is great for anyone that doesn’t want to worry about losing insurance coverage in the future, but that permanent coverage is going to come at a higher price.

The sample quotes in this article are for term life insurance and that is the primary focus of this article. But, we do provide links to some relevant articles we have written about a permanent life coverage called indexed universal life (IUL).

Why do I need life insurance?

This is the first and most obvious question. Why do I need life insurance? Well, the purpose of life insurance is to make sure that people who rely on you financially will not be burdened by this loss in addition to the obvious, if you were to pass unexpectedly. Would your family be just fine if you and your income were to suddenly disappear? Probably not. This is why people buy life insurance.

Let’s touch briefly on four of the main reasons we see clients purchasing life insurance.

  • income replacement
  • college education expense
  • mortgages and other large debts
  • partners in a small business

Income replacement is the main reason most clients purchase term life insurance policies. This policy would provide your loved ones with a cash payout upon your death that would allow them to continue with the standard of living and quality of life you have worked hard for them to enjoy.

College education expense is a cost many parents proudly expect to bear for their children. Therefore, many clients include their children’s higher education when calculating a death benefit for a term life insurance policy. Even if the worst were to happen, you want to make sure your children will experience this valuable transition to adulthood.

4 key features of Indexed Universal Life for College Planning

If you are considering buying a home, a life insurance policy to cover a mortgage is something you want to consider. Already grieving, you don’t want your loved ones to also be saddled with any financial burdens, including a large debt. A large debt that could result in years of financial hardship on top of a devastating family loss.

Indexed Universal Life for Mortgage Protection?

One other common use of a life insurance policy is for partners of a small business. In this case it is actually two policies that the partners would take out on each other. If one partner dies unexpectedly, the other partner’s policy would pay them a benefit that would allow them buy out the deceased partner’s interest in the business. This could be the difference between a small business continuing to thrive or closing up shop.

Funding buy sell agreements with indexed universal life insurance

How much life insurance do I need?

Well, without sitting down with a qualified independent agent, it is hard to say. Each client we see has a unique set of circumstances, no two will have the same life insurance demands.

As far as life insurance to cover college education expenses go, the range is large. Will your child be going to a local school or an Ivy League school? Will you be paying for all expenses or just tuition and books? Don’t forget that the price tag for your child’s future college education will almost certainly be significantly higher than today’s.Life insurance at 35

The death benefit on a life insurance policy to cover your mortgage would of course depend on the size of your mortgage. Many insurance companies offer mortgage protection policies with a benefit that decreases as the outstanding balance of your mortgage decreases. Often there is a lower limit on the death benefit, say 20% of the original face value of the policy.

The premiums for these mortgage protection policies are set taking these caveats into consideration and can be very reasonable. It is possible to get a 3-year policy with $100,000 in coverage for less than $25 a month.

As far as a small-business policy is concerned, life insurance is often used to fund a buy-sell agreement which is a legally binding document that dictates how things will proceed if a partner were to die or a business were to otherwise dissolve. The face value of these policies will of course vary from business to business.

Let’s look now at a simple way to calculate the level of life insurance benefit you would need to replace the income you represent to your household. You need to first decide, if you were to die, how much income would your family require to continue in the standard of living to which they are accustomed? Each family represents a unique set of circumstances and this is something you will decide guided by the advice your independent agent.

For the purposes of this example we will say you make $70,000 a year and have concluded that your family would need an extra income of $35,000 a year to continue their present quality of life in the event of your death.

Imagine a very conservative interest rate that you feel confident a lump sum bequeathed to your family could earn. we’ll go with 4%. Now divide the yearly income you would like your family to receive in the event of your passing by the decimal equivalent of our 4% interest rate, 0.04.

$35,000 ÷ 0.04 = $875,000

So, assuming an interest rate of 4%, you would need a death benefit of $875,000 to ensure your family a yearly income of $35,000. This does not account for inflation, which you will want to account for in your death benefit calculations.

Going with the support of an independent agency like Ogletree Financial Services is the right way to make an important financial move like purchasing a life insurance policy. Personal service, product knowledge and industry experience make us a valuable tool for protecting your family’s financial future.

How Much will my Life Insurance Cost?

Life insurance at 35Probably not as much as you think. Especially at 35, you should have no trouble fitting a life insurance premium into even a tight family budget.

Following we have set up four tables with some sample monthly life insurance premiums for a non-smoking, 35-year-old male and female. The quoted figures are for term life insurance. One chart is for a preferred plus health category and one chart is presented for a standard health category.

Life insurance companies evaluate, or underwrite, a client’s risk and then place them into a particular health category based on this evaluation. Sometimes this is called a risk rating, a health rating or risk category. Some people are considered a better risk to live a long life than others and these categories (and the premiums charged to clients placed into them) represent that consideration.

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 actual premium will be based on how your unique risk is assessed by life insurance companies.

35-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 $8.35 $10.49 $14.76 $24.57
15-year $9.10 $11.81 $17.21 $28.89
20-year $9.55 $13.97 $21.97 $38.41
25-year $13.23 $20.89 $35.27 $62.63
30-year $13.94 $23.23 $39.14 $70.41

35-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 $11.79 $18.08 $29.68 $52.50
15-year $12.82 $20.46 $34.95 $62.84
20-year $14.72 $25.38 $44.73 $82.81
25-year $19.79 $36.46 $61.76 $117.52
30-year $22.05 $41.50 $76.98 $142.2

35-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 $7.58 $10.06 $14.00 $21.00
15-year $7.88 $10.94 $16.35 $26.69
20-year $8.87 $12.82 $19.73 $34.12
25-year $11.94 $17.65 $28.46 $51.38
30-year $12.05 $19.59 $33.12 $58.49

35-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 $10.50 $15.06 $23.23 $40.43
15-year $11.71 $18.70 $31.83 $56.77
20-year $13.43 $23.01 $40.00 $73.01
25-year $16.52 $29.76 $53.33 $100.63
 30-year $18.60 $33.55 $61.07 $114.39

You should now have an idea of the range of premiums a thirty-five-year-old can expect to pay for a fully-underwritten term life insurance policy.

Life Insurance at 35

That should be enough to get you started and ready to talk to your independent agent. You probably have plenty of questions that we at Ogletree Financial Services are ready and able to answer. Get in touch with us today and get you and your family the life insurance protection you need.

You never know what’s going to happen tomorrow, which means you shouldn’t wait any longer to get the insurance coverage that your family deserves. Call us today and we would be happy to connect you with the best plan possible.

  • Give us call at 1-800-712-8519!
  • Leave us a message on our contact page!
  • Use the free term quoter 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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