It is important to begin your life insurance coverage at a young age. Premiums increase as 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 a few basic questions we get all the time:
- 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. with access to over thirty top life insurance companies, we have put together the lowest life insurance rates for 33 year olds and put them in an easy to follow table.
Why Should You Buy Life Insurance?
Table of Contents
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.
Clients with children often factor in the cost of college when deciding how much life insurance to buy. Financing your children’s college education may be something you plan to do and want to be sure goes 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. Many times our business owner clents use term life insurance but there are options like indexed UL that should also be considered. These policies create cash value that can be used to help the partners buy out each other from the business.
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.
How Much Insurance Should You Buy?
When deciding on how much life insurance is needed to replace your paycheck 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 interest your family will need to continue the lifestyle to which they have become accustomed.
First, decide on 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. It is best to use a conservative interest rate like 4% for your calculations.
Lastly, you divide the annual amount by the interest rate.
For example, if you decide your family needs $25,000
The math looks like this ⇒ ———— = $625,000
So, for your family to receive a yearly income of $25,000, you’d need to buy $625,000.
How Much Will my Life Insurance Cost?
At 33, your premiums aren’t going to be sky-high because of your age. You’re still young compared to a lot of the applicants out there.
Aside from your age, the carrier is going to look at your health and other factors.
Okay, let’s talk costs.
|Male Age 33|
Preferred Plus Rates
|30 year term||$11||$20||$33||$60|
|Term to age 95||$47||$94||$177||$331|
|Male Age 33|
|30 year term||$20||$35||$64||$119|
|Term to age 95||$52||$121||$224||$415|
|Female Age 33|
Preferred Plus Rates
|30 year term||$10||$17||$27||$47|
|Term to age 95||$41||$75||$136||$253|
|Female Age 33|
|30 year term||$16||$28||$48||$90|
|Term to age 95||$42||$103||$193||$355|
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.
If you’re in your 30s, and you want an insurance plan you can afford, you’ve come to the perfect site. We’ve worked for years to perfect our insurance search technique.
You don’t have to become a life insurance genius. We will do all of the shopping for you. Skip the calling and research.
Make one call, and sit back as we do the work.
Frequently Asked Questions
How much life insurance do I need at 33?
It depends on what debts or future expenses you need to cover. Consider income replacement, college expenses, small business coverage, mortgages and other large debts. Consult with a reputable independent insurance agent to help navigate your needs and goals.
What does life insurance cost when you’re 33?
A sample monthly premium for a $1,000,000 30-year term policy at standard non-tobacco rates is $106.74 for a female and $135.29 for a male. These are sample premiums, yours would be based on your personal underwriting by the insurance carrier.
Why should I buy life insurance when I only 33?
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. Contact an independent life insurance agent to discuss your personal needs.