Life insurance at 38

You may have heard that life insurance premiums at thirty-eight will break your budget. We are here to tell you that is just not true. Life insurance at 38 is a wise and affordable investment.

This article is aimed at 38-year-old men and women who are considering life insurance to protect their family’s financial future. We will briefly address four basic questions:Life insurance at 38

  • 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 very involved process, but hopefully this short introduction will get you comfortable with the basics of the life insurance coverage you and your family need. Without a doubt, the life insurance application process should be approached with the assistance of a professional independent agent.

Life insurance coverage is an important part of your family’s financial plans and the aid of an agent with skill and experience in the life insurance marketplace is vital. At Ogletree Financial Services we represent over thirty top insurers and you can be sure we will guide you to the one that is right for you and your life insurance needs.

What is term versus permanent life insurance?
The U.S. News and World Report article “Which is Better For You: Term or Permanent Life Insurance?” gives two very simple definitions: “Term insurance provides a level premium and a level death benefit protection for a stated period of time, such as 10 or 20 years. Permanent insurance typically provides both a death benefit and cash savings. There are different types of permanent insurance, including whole life, universal life, indexed universal life (IUL), variable life and variable universal life.”

We are mostly thinking about term life insurance in this article but look for a few links to some very informative articles about indexed universal life that are relevant to our discussion here.

Why do I need life insurance?
When some people think of life insurance, they imagine a policy intended to cover the deceased’s final expenses, and not address any other financial obligations. We do write smaller policies with very basic coverages. But many clients have much wider goals for their life insurance coverage. Let’s chat about four of the top reasons clients purchase life insurance:

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

Income replacement is the main one. You want to be certain that the income you provide for your family will continue even if the worst were to happen to you. An extremely painful crisis for a family becomes considerably worse when what could turn into years of financial burden is added to their grief.Life insurance at 38

Many parents plan to provide support for their children’s college education and include these expenses in their life insurance calculations. You may feel that this an important element of your support your children as they enter adulthood, and want to be sure your children can rely on this assistance no matter what happens to you.

4 key features of Indexed Universal Life for College Planning

Partners in a small business will often purchase life insurance policies on each other to fund the death provision of a buy-sell agreement. These policies allow the surviving partner to buy out the deceased’s interest in the business from their partner’s family. These types of policies provide both a cash payout to the deceased’s loved ones and security for the business the partners have worked hard to build.

Funding buy sell agreements with indexed universal life insurance

At 38, many may be considering home ownership. Life insurance is often used to cover a mortgage or other large debt. Life insurance coverage for only income replacement could leave your loved ones responsible for tens or even hundreds of thousands of dollars in debt after you have gone. Life insurance coverage to handle any type of financial responsibility is very important to many clients.

Indexed Universal Life for Mortgage Protection?

Life insurance at 38How much life insurance do I need?
How much life insurance you will need to pay off a mortgage or provide for your children’s college education expenses will vary widely and depend on your family’s personal financial goals.

For a small business, each partner purchases a policy that would pay them the death benefit of the policy if the other partner were to die. The benefit, or face value, of a life insurance policy in this case can be used to buy-out the deceased partner’s interest in the business. The face value of these policies will of course depend on the size and structure of the business.

The life insurance benefit required to restore your income can be roughly approximated using a basic formula. The plan is to leave a “nest egg” that will generate in interest a yearly income your family would require if you were to die unexpectedly.

How much income your family would need is the first order of business. The amount you and your agent decide upon will depend on a few factors, including your spouse’s future ability to earn income.

Next, we must do a little math. What lump sum would your family need to earn the yearly income you have decided upon. It is best to use a conservative interest rate you can be sure the pay-out to your family will earn. We’ll use 4% for our example.

Here’s the math! Divide the desired yearly income by the 4% interest rate.Life insurance at 38

If your family would need a yearly income of $25,000,

       $25,000
       ———-     =     $625,000
            04

So, for your family to be able to rely on a yearly income of $25,000 after you have died, you would need a life insurance benefit of $625,000.

The guidance of a qualified independent agent is pretty much mandatory as you navigate the life insurance marketplace. There are a many important decisions regarding your policy. Some clients purchase more than one life insurance policy. Ogletree Financial Services can be an important guide to the right choices to secure the coverage you need at the lowest premium.

How much will my life insurance cost?
At 38 and in good health your life insurance policy should be very affordable. Team up with the experts at Ogletree Financial Services to make sure. We represent over thirty top insurers and we can evaluate your unique risk and pair you with the best life insurance carrier for you and your family.

We have set up four tables with some sample monthly premiums for a non-smoking, 38-year-old male and female. These sample quotes are for term life insurance with a table for a preferred plus risk rating and one 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 unique risk is assessed.

38-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 $9.19 $11.38 $16.84 $27,28
15-year $10.16 $13.54 $21.11 $35.81
20-year $10.67 $16.35 $26.73 $47.92
25-year $15.23 $24.13 $41.43 $76.47
30-year $16.35 $27.38 $47.92 $87.71

38-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 $13.22 $21.00 $34.12 $58.62
15-year $14.80 $24.13 $41.91 $76.04
20-year $17.06 $29.54 $53.11 $100.69
25-year $24.18 $44.46 $79.06 $147.40
30-year $25.92 $51.16 $95.06 $175.72

38-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 $8.35 $10.28 $15.16 $23.84
15-year $8.75 $12.47 $18.81 $31.42
20-year $9.96 $14.54 $23.62 $41.12
25-year $13.23 $20.46 $34.51 $61.58
30-year $13.51 $22.62 $39.27 $71.71

38-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 $11.71 $17.94 $28.39 $50.54
15-year $13.34 $21.97 $37.97 $69.55
20-year $15.37 $26.51 $47.06 $86.50
25-year $19.20 $35.38 $64.36 $123.18
 30-year $21.17 $39.70 $73.01 $137.67

Life insurance at 38

These sample premiums should give you an idea of the affordability of term life insurance for a 38-year-old. As you can see, life insurance coverage will not break your budget and your loved one’s financial security will be protected.

Getting started with Ogletree Financial is quick and easy!

  • Give us call at 1-800-712-8519!
  • Leave us a message on our contact page to get a custom quote!
  • Use the 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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