Life Insurance at 33

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 four basic questions we get all the time:

  • 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?

This introduction to life insurance should get most people in their early thirties started toward getting the coverage they need. Ogletree Financial Services can be your guide through the often complicated life insurance application process. Our knowledge, experience, and access to over thirty top life insuranceLife insurance at 33 companies, coupled with personal attention to each client’s needs and unique risk, has insured thousands across the country.

What is Term Versus Permanent Life Insurance?

Term life insurance policies cover an insured’s life for the duration, or term, of the insurance contract. Usually, the end of the term coincides with the end of the need for the insurance. A policy for a mortgage would match the term of the loan. A policy to cover your family through your children’s college education may require a 20 or 25-year term life insurance policy.

Permanent life insurance covers the entire life of the insured and does not expire as long as the premiums are paid. Additionally, permanent life insurance includes a cash accumulation component. This makes your life insurance policy a protection for your family’s future and a valuable financial asset.

Which type of policy is right for you is something to decide with the help of your independent agent. This article primarily addresses term life insurance policies, but we do suggest a few informative articles we have concerning permanent life insurance.

Why Should You Buy Life Insurance?

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 account for the high cost of college education when deciding on the benefit their family will receive in the unfortunate event of their passing. Financing your children’s college education may be something you plan to do and want to be sure Life insurance at 33goes 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. Our article “Funding buy sell agreements with indexed universal life insurance” discusses a type of permanent life insurance called Indexed Universal Life (IUL) and small business financial arrangements.

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. An IUL policy can also work for your mortgage. Read “Indexed Universal Life for Mortgage Protection?” and find out how.

How Much Insurance Should You Buy?

Figure out how much you need to help your family to cover a mortgage or fund your children’s higher education will depend on your personal goals and life circumstances. Our article “4 key features of Indexed Universal Life for College Planning” examines IUL policies and college planning.

If you own a small business, or you’re a partner in a small business, you have different life insurance needs. You want to guarantee your business will have the funds to keep the shop running.

When deciding on what size benefit (payout from your life insurance policy) 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 oLife insurance at 33n 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

                                                          $25,000
The math looks like this      ⇒        ————      =     $625,000
                                                             .04

So, for your family to receive a yearly income of $25,000, you’d need to buy $625,000.

Deciding on a face value for your life insurance policy will require some homework with the help of an experienced independent agent. Some clients even decide to purchase more than one life insurance policy. There are a lot of choices to be made. Ogletree Financial Services can help you make the right decisions and get you the right policy as affordable as possible.

How Much Will my Life Insurance Cost?

Life insurance at 33

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. You want to know you can buy a plan you can afford. Let’s look at some random quotes.
These are only generic quotes for life insurance. There are plenty of variables which will impact how much you will pay.

33-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$8.18$10.94$14.78$23.31
15-year$8.78$11.37$16.35$27.16
20-year$9.52$13.75$21.54$37.54
25-year$12.65$19.38$31.92$56.57
30-year$13.43$21.97$36.68$66.09

33-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$11.62$17.85$28.82$50.75
15-year$12.65$20.24$34.51$61.54
20-year$14.37$24.35$42.73$78.58
25-year$18.93$35.16$58.73$111.93
30-year$20.74$39.78$73.44$135.29

33-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$7.49$9.84$13.56$20.12
15-year$7.88$10.73$16.10$26.25
20-year$8.78$12.38$19.25$32.37
25-year$11.45$16.56$26.73$47.06
30-year$11.88$18.73$31.05$54.84

33-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$10.33$14.84$23.23$40.43
15-year$11.62$18.29$30.54$55.04
20-year$12.91$21.32$36.68$66.95
25-year$15.92$28.24$49.65$93.77
30-year$17.90$31.92$57.44$106.74

As we mentioned, these are only rough estimates on your life insurance plan.

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.

Sure, you don’t want to plan your own passing, but life can be crazy. Instead of risking your family’s financial future, you should protect them with an insurance plan.

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.

Getting started is easy!
Give us call at 1-800-712-8519!
Leave us a message on our contact page!
Use the term quoter on the left side of this page!

About Doug Mitchell
About Doug Mitchell

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA.  Doug has spent over 20 years in the life insurance industry and has also held licenses to sell securities, long-term care insurance, home and auto insurance.  For two years, Doug served as President of the Auburn Opelika Association of Financial Advisors and has been a member of the Million Dollar Round Table.  He obtained Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award.  Later in his career with New York Life he was an Executive Council Member.  Doug currently serves as President of Ogletree Financial, a life insurance marketing organization with over 1000 life insurance agents.  Today, Doug’s main focus is servicing 1000s of policyholders and growing his agency through the reach of www.insurancequotes2day.com.

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