Life insurance at 39

Many people first consider life insurance in their late thirties. You have lived enough to know that unexpected adversity is a fact of life you want to be ready for.  The future you are building for your family is your top priority. You want to be sure that the quality of life you envision for your family will be a reality even if the worst were to happen to you. Life insurance at 39 is a wise move.

At 39, you can still get very affordable life insurance rates. A life insurance policy will usually have very little effect on your family’s budget. Keep in mind that getting your coverage while you are still young and have your health becomes even more important as you close in on your forties. In ten years when you are 49, your premiums will be higher. Life insurance premiums rise more and more steeply as you get older and any health issues you may develop will also ramp up your life insurance costs.

In this article, we will address four basic questions to get you and your family started on the road to obtaining the life insurance coverage you need.

  • 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?

What is term versus permanent life insurance?
The nerdwallet article The Differences Between Term And Whole Life Insurance has this to say, “There are two main types of life insurance: term and permanent. Term life is the easiest to understand and has theLife insurance at 39 lowest cost. Whole life is the most well-known and simplest form of permanent life insurance coverage, which tends to be more expensive than term, but offers additional benefits. Other kinds of permanent life insurance include universal, variable and variable universal.”

A term life policy’s coverage ceases at the end of the term, which generally corresponds with the length of a financial commitment you want insured. The additional benefit of permanent life insurance, in addition to life-long death benefit coverage, is an interest-earning cash account connected to these policies.

A type of permanent life insurance we have a lot of experience with at Ogletree Financial Services is indexed universal life (IUL). This article is mainly concerned with term life policies, but we have of couple of links to some articles we have written about IUL policies that relate to this article.

Why do I need life insurance at 39?
Maybe you have children and want to make certain that no matter what may happen to you, they will be financially secure into their adulthood. You can use a life insurance policy to guarantee the income you represent to your family and protect the quality of life you and your loved ones enjoy.

Many people aim to insure themselves well enough to support their spouse and children and pay for their children’s college education. This goal can ensure financial support for your children until they are ready to take on that responsibility themselves.

4 key features of Indexed Universal Life for College Planning

If you are a partner in a small business, you may be interested in a life insurance policy to protectLife insurance at 39 your business in the event that a partner dies unexpectedly. Anywhere you are relied upon financially, a life insurance policy may be needed. A partner’s death could devastate a small business. A life insurance policy could be the difference between continued success and bankruptcy.

Funding buy sell agreements with indexed universal life insurance

Large debts such as a mortgage are often insured. A life insurance policy should be considered to pay off any outstanding debt in your financial portfolio. Your family’s financial security could be compromised if they are left responsible to repay large financial obligations.

Indexed Universal Life for Mortgage Protection?

How much life insurance do I need?
Without a meeting with a qualified independent agent, it is difficult to determine how much life insurance a person needs. Each client is living a unique life and no two are seeking the same life insurance coverage.

There is a broad range of funds that a client may want to leave their children for their college education. Will your child be going to a local community or trade school, or do they aspire to attend an Ivy League institution? Do you plan to cover all of your children’s college expenses or only tuition and books? And of course, your 4-year-old’s higher education will come with a higher price tag than today’s already soaring costs.

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. Many of these policies have a benefit that reduces over time with the balance of your mortgage. Sometimes there is a lower limit on the death benefit, like 20% of the original death benefit. The benefit from these policies is generally paid directly to the mortgage lender and any extra would be passed on to the deceased’s Life insurance at 39estate.

For small-business policies, life insurance is sometimes purchased to fund a buy-sell agreement. According to Wikipedia, a buy-sell agreement is a “legally binding agreement between co-owners of a business that governs the situation if a co-owner dies or is otherwise forced to leave the business, or chooses to leave the business.” The life insurance policies purchased by the partners would provide funds in the event that a partner dies. The face value of these policies will depend on the business being insured.

Let’s look now at a quick way to estimate the life insurance coverage you would need to restore the income you provide to your household. First, you need to determine how much income your family would require to continue to live the quality of life you have worked hard to provide.

Every family is a unique situation and what this amount is depends on many factors such as how much income will your spouse be producing after you have passed? The advice of an independent agent is recommended to guide in this decision and many others when you are deciding on life insurance coverage.

Let’s use an example where you make $70,000 a year and have decided that your family would need a supplemental income of $35,000 a year to continue in their present living situation.

We’ll use a very conservative interest rate that you feel sure a lump sum left to your loved ones could produce, 4% is good. Next divide the yearly income of $35,000 you have decided on by the decimal equivalent of the 4% interest rate, 0.04.

Here’s the math   →    $35,000 ÷ 0.04 = $875,000

So, using an interest rate of 4%, a death benefit of $875,000 is necessary to provide your family a yearly income of $35,000. This is does not account for inflation and is only an approximate figure. How inflation will affect the benefits your life insurance policy in the future is an important consideration.

Enlisting the help of an independent agency like Ogletree Financial Services is the smart way to this make this important addition family’s financial portfolio. Our personal service, deep product knowledge and decades of industry experience make us a mandatory tool for securing your family’s financial future.

How much will my life insurance cost?Life insurance at 39
Not as much as you think. You may have heard differently, but at 39, especially if you are healthy, your life insurance premiums will be not strain the family budget.

We have set up four tables with some sample monthly life insurance premiums for a non-smoking, 39-year-old male and female. These figures are for term life insurance. One chart is for a preferred plus health category and one chart is for a standard health category, for males and females.

Life insurance companies will underwrite, or evaluate your risk and then put you into a health category based on this evaluation. Sometimes this is called a risk rating, a health rating or risk category. Some people are determined to be more likely to live a long life than others, are placed in a more favorable category, and pay lower 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 only sample premiums. Your actual premium will be based on how your unique risk is assessed by life insurance companies.

39-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 $8.98 $12.32 $17.01 $27.81
15-year $9.54 $14.40 $22.84 $38.41
20-year $11.11 $17.21 $28.46 $51.38
25-year $15.92 $25.43 $44.03 $82.48
30-year $17.12 $28.89 $51.38 $95.50

39-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 $13.68 $21.22 $35.87 $62.12
15-year $15.49 $25.65 $44.97 $82.16
20-year $17.85 $31.27 $56.57 $107.61
25-year $25.64 $47.70 $85.31 $160.37
30-year $27.48 $55.27 $102.42 $190.07

39-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 $8.61 $10.72 $15.96 $25.11
15-year $9.13 $12.91 $20.04 $34.04
20-year $10.35 $15.22 $25.20 $44.62
25-year $13.75 $21.54 $36.70 $65.61
30-year $14.03 $23.92 $41.04 $76.03

39-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 $12.05 $18.81 $30.11 $54.19
15-year $13.86 $23.27 $40.57 $74.68
20-year $16.09 $28.03 $50.08 $92.90
25-year $20.33 $37.76 $68.68 $131.83
 30-year $22.20 $42.30 $77.76 $147.88

Hopefully these sample premiums help you to see how affordable life insurance can be at thirty-nine.

Life insurance at 39

It could very well be that you have even more questions now than before. That’s alright. At Ogletree Financial Services we have the answers. If you have read this article and know that life insurance is right for your family’s future, you are in the right place.

Knowledge, experience and integrity are the cornerstones that make Ogletree Financial Services the best choice to make these important plans for your family’s financial future.

Getting started is 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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