Do you want to protect your family, regardless of what happens in the future? The best way to do that is to purchase life insurance coverage. Life insurance is the best safety net that you could ever purchase for your family.
We see a lot of young families, in their early thirties, looking to buy life insurance coverage to secure their financial future. They want to be sure that no matter what happens, their spouse and children will always have enough money. You have made the wise move, considering life insurance at 32 while you’re still young. Life insurance premiums increase every year you wait to get coverage. And if you were to develop a health condition before you bought a policy, your life insurance costs might increase even more.
Life insurance is an important part of protecting against the unknown. But you probably have questions. Most people do. Four basic questions most clients want answered are:
- 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?
We’ll quickly cover these topics and show you some sample quotes for 32-year-olds to demonstrate to you that life insurance really can be affordable. To secure the life insurance you need at the lowest rate, you want to have an experienced agent by your side. Ogletree Financial Services can guide you through the application process. We’ve partnered with over thirty top providers and we will present your risk to the right company to get the best deal on the policy you need.
Should you Buy Term or Whole Life Insurance?
Investopedia states that term life insurance “policies provide a stated benefit upon the death of the policy owner, provided that the death occurs within a specific time period. However, the policy does not provide any returns beyond the stated benefit, unlike permanent life insurance policies, which have a savings component that can be used for wealth accumulation.”
This article is going to focus on term insurance because of the cost-effectiveness. You should be aware of the other kinds of permanent coverage, called indexed universal life, or IUL.
Why Do I Need Life Insurance at 32?
Income replacement is the first reason many clients say they are interested in life insurance. When people hit their 30s, there are a lot of different reasons they might need an insurance plan. Let’s look at some of them.
Many clients are also interested in purchasing life insurance to help cover college education for the kids. You want to make sure that even if you are gone, your children will enjoy the benefits of higher education. If you’re interested in buying a life insurance plan for the purpose of paying for college expenses, head over to read “4 key features of Indexed Universal Life for College Planning.”
often purchase life insurance to protect themselves and their business in case a partner were to die prematurely. If tragedy were to strike, this protection could keep a small business going bankrupt or continuing to succeed. This type of policy provides a death benefit to the surviving partner that allows them to pay off their partner’s heirs for their loved one’s portion of the business. Our article, “Funding Buy-Sell Agreements with Indexed Universal Life Insurance” discusses a permanent policy solution for this financial obligation.
At 32, you may be thinking about buying a home. Many clients with a mortgage purchase life insurance to avoid their loved ones being saddled with this burden in the event of their unexpected passing. To learn how a permanent life policy can pay off a mortgage, check out our article “Indexed Universal Life for Mortgage Protection?“
Some clients are only interested in purchasing life insurance to cover final expenses, outstanding medical bills, credit card debt and other smaller expenses, when they die. These clients can purchase low cost policies with smaller death benefits. A guaranteed issue policy that requires no medical exam may even be an option in these situations.
How Large of a Policy do You Need?
For purposes of income replacement, sometimes a very simple formula is used to decide how much life insurance coverage is necessary. First, decide the yearly income your family would need to continue their life as normal. Next, divide that figure by an interest rate (life insurance payout) your loved ones will receive will be able to earn each year.
For example, let’s imagine you make $45,000 a year and your spouse would be working part-time. Your family would need a supplement of $25,000 a year to maintain their current lifestyle.
We will use an interest rate of 4%.
Here’s the math:
$25,000 ÷ 4% = $625,000
This means a benefit, or “nest egg,” of $625,000 will earn in interest the $25,000 a year your family needs.
As far as college education, final expenses and your mortgage are concerned, a conversation with your independent agent will be required to assess these personal life insurance needs. Few people have the financial acumen and required knowledge to confidently navigate the life insurance marketplace and the complicated application process. Partner with an independent agent like Ogletree Financial Services to make sure this important financial move is done right.
What Will You Pay for Your Plan?
Term life insurance is surprisingly affordable! Many are surprised that they can get the life insurance coverage they need without having to slash the family budget.
Even if you have health concerns we can find a plan to meet your need at rates often very similar to the ones shown here. We deal with many individuals with “impaired risk” and know which carriers will most favorably insure these clients.
The tables presented are for a non-smoking, 30-year-old man and woman, at a preferred plus rating and a standard rating. The figures shown are for term life insurance.
There are a handful of variables and questions you’ll have to answer to get a clear picture of your premiums, but the quote below can get you started. We’ve gathered quotes for a varied of different plan sizes and lengths.
|Male Age 32|
Preferred Plus Rates
|30 year term||$11||$19||$31||$55|
|Term to age 95||$46||$91||$172||$321|
|Male Age 32|
|30 year term||$20||$34||$63||$116|
|Term to age 95||$51||$116||$214||$397|
|Female Age 32|
Preferred Plus Rates
|30 year term||$10||$16||$27||$46|
|Term to age 95||$40||$72||$132||$244|
|Female Age 32|
|30 year term||$16||$28||$46||$86|
|Term to age 95||$40||$100||$185||$338|
These numbers should let you know the ball-park for monthly premiums a thirty-two-year-old could see for a term insurance plan.
Life Insurance at 32
Life insurance is an important part of planning for your family’s future. You want your loved ones to always enjoy the quality of life you provide for them, no matter what happens. The death of a parent, spouse and family provider is already bad enough without financial difficulty. Life insurance can guarantee income. In the event of a tragedy, your loved ones will have the financial resources to continue their lives without that burden.
Unless you know what the future holds (we assume you don’t), you should go ahead and start the process today.
Getting started is easy!
Give us call at 1-800-712-8519!
Use the term quoter on this page!
Frequently Asked Questions
Considering life insurance at 32 while you’re still young is a wise decision. Life insurance premiums increase every year you wait to get coverage. And if you were to develop a health condition before you bought a policy, your life insurance costs might increase even more.
A sample monthly premium for a $1,000,000 30-year term policy at a standard non tobacco rate is $103.28 for a female and $131.83 for a male. These are sample premiums, yours would depend on your personal underwriting with the insurance carrier.
You should consider income replacement, college education, final expenses and your mortgage when deciding how much insurance to buy. A conversation with your independent insurance agent will be required to assess these personal life insurance needs.