At age 39, you can still get very affordable life insurance rates.
Term life insurance is still very cheap and it may be a great time to consider permanent life insurance.
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.
If you’ve been thinking about buying life insurance, but you haven’t made the commitment, we highly suggest you don’t wait any longer.
Term or Permanent Life Insurance?
There are two main types of life insurance: term and permanent. Term life insurance is the easiest to understand and has the 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 after the term, which generally corresponds with the length of a commitment you want insured.
Permanent life insurance on the other hand doesn’t have a term. It’s always active.
There is also indexed universal life (IUL). IUL is also a form of permanent coverage.
Both of these types of life insurance have different advantages and disadvantages to weight to get the best type of plan. Every family is different, which means that there is no “one size plan fits all” that you can purchase. If you need help deciding which one is best for you, either term or whole life, our agents can ask some questions that will give you an idea of which one will meet your needs.
Why do I need Life Insurance at 39?
Every family is different. Each person has different insurance needs. Some people assume they don’t need life insurance coverage, we are going to show you why that probably isn’t true.
If you have kids, then you need life insurance. Period. You have people who need your income, which means you need life insurance.
Hopefully our children are going to go on to college one day. You want those children to further their education. Unfortunately, getting a degree is very expensive. Hopefully, you’ll be around to watch them get the degree, but if you aren’t, it could be difficult to pay for their education.
The most common debt is a mortgage loan. In fact, a vast majority of Americans have a mortgage. Can your spouse or children pay your mortgage payment? If the answer is no (and it probably is), then you need a plan to cover the monthly bill.
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 be based on the size of the loan. 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 estate.
Let’s look now at a quick way to estimate the life insurance coverage you would need to restore any lost income. Add up your monthly expenses – how much does your family need?
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 of someone who makes $70,000 a year and the family would need an income of $35,000 a year in their present living situation.
We’ll use a rate of 4%. 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, a rate of 4%, and benefit of $875,000 will give your family a yearly income of $35,000. How inflation will affect the benefits your life insurance policy in the future is an important consideration.
How much will my Life Insurance cost?
You may have heard differently, but at 39, especially if you are healthy, your life insurance premiums will be not strain the family budget.
To help you understand how much your coverage will be, as a 39-year-old, we’ve ran some basic quotes. We’ve included a variety of different plan sizes and lengths.
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 cheap a plan can be.
Life Insurance for a 39 year old
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, then you can get started.
Frequently Asked Questions
How much life insurance do I need at age 39?
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. If you have children, a mortgage, small business, or any debt, you will need to consider these factors when determining a face amount.
What is the cost of life insurance at age 39?
A sample monthly premium for a $1,000,000 30-year term policy at a standard rating would be $147.88 for a female and $190.07 for a male. These are examples, your premium would be based on your personal underwriting with the insurance company. An independent life insurance agent can help guide you to the best company for your needs.
Should I buy term or permanent life insurance at age 39?
This will depend on your personal goals and needs. An experienced independent life insurance agent can guide you to determine the best policy for you. A term life policy’s coverage ceases after the specific term, which generally corresponds with the length of a commitment you want insured. Permanent life insurance on the other hand doesn’t have a term. It’s always active as long as premiums are paid. We have a lot of experience with indexed universal life (IUL). IUL is a confusing topic, we recommend you check out our article if you want to learn more.
