Getting life insurance while you are still young is important. Yes, thirty-four is definitely still young and life insurance companies know that. Life insurance will never again be more affordable for you than right now.
Most people have questions when first buying life insurance. We will touch on a few questions that we hear a lot:
- Why do I need life insurance?
- How much life insurance do I need?
- How much will my life insurance cost?
Buying life insurance is an important part of your family’s future and the help of someone with financial skills and experience in the life insurance marketplace is vital. Ogletree Financial Services represents over thirty top insurers and we can help you pick the right one.
Term life insurance policies cover the life of the insured for a specific period of time. This term usually lasts as long as the need for the insurance exists. For example, let’s say you have decided to insure your family until your children have graduated from college. If your youngest is five years old, you’re looking at a 20-year policy. Some people purchase term life policies that run until their retirement.
CNN Money’s “Ultimate guide to retirement” says that term life “insurance is basic, inexpensive and easy to understand. It gives you all the coverage you need and none that you don’t.” This is true and term life insurance is often the best solution to our clients life insurance needs.
Why do I need Life Insurance?
Table of Contents
Some people may be imagining a life insurance policy that only covers the deceased final expenses. While we do write some smaller policies, most people want their life insurance coverage to do much more for them than that. Here are some of the primary reasons our applicants want life insurance
- income replacement
- college expenses
- small business coverage
- mortgages and other large debts
Income replacement is the big one. An extremely difficult situation for a family becomes exponentially worse when the additional strain of a large financial burden is bearing down on them.
Can your family survive one on paycheck?
Many parents have plans to send their children to college after high school. They consider this an important part of how they will support their children as they enter adulthood. We suggest that you include college education expenses when adding up how much life insurance to buy.
Partners in a small business will often purchase life insurance policies on each other. These policies enable the surviving partner to use the policy benefit to buy out their partner’s half of the business from their partner’s heirs. This type of policy provides an additional cash payout to your loved ones and secures the future of your business.
At 34, you may be considering buying a house, requiring that you enter into a large mortgage. In addition to income replacement, life insurance coverage to pay off any large debts like a mortgage is very important to many clients.
How much Life Insurance do I need?
Being able to work with a qualified independent agent is becoming more and more important. Mortgages are often insured with a separate policy with a term that coincides with the term of the debt being insured. Education expenses will vary greatly from family to family, again this is one you need to work out with your agent. The level of coverage for partners of a small business will be some amount determined to be sufficient to buy out a deceased partner’s interest in the business.
Again, income replacement is the big one. How much do you need to fill in the gaps left behind by your death? Whatever number this comes out to be, this is your starting point.
After this, you need to know how much interest your policy will have to earn for your loved ones. For the example below, we used a 4% rate.
The math to do this is simple:
required benefit = ————— = $1,000,000
Using this math, you would need a life insurance benefit of around $1,000,000 would be required. We know these number are beginning to get big but know that a 20-year term policy for a 34-year-old women at a preferred plus health rating with a face value (amount to be paid to your family upon your death) of $1,000,000 will have a monthly premium of less than $35.
A life insurance policy is a relatively small investment for the significant value of your family’s financial security, and your peace of mind.
How much will my Life Insurance cost?
Healthy thirty-four year old applicants pay some of the lowest life insurance premiums out there.
We put together a table of rates so that you can get an idea of the cost. You can use the quoter on this page to get a better idea of an exact rate.
|Male age 34|
Preferred Plus Rates
|30 year term||$11||$20||$33||$61|
|Term to age 95||$49||$96||$182||$341|
|Male age 34|
|30 year term||$20||$36||$66||$123|
|Term to age 95||$52||$125||$233||$433|
|Female Age 34|
Preferred Plus Rates
|30 year term||$10||$17||$28||$48|
|Term to age 95||$43||$76||$140||$260|
|Female Age 34|
|30 year term||$17||$29||$50||$94|
|Term to age 95||$45||$105||$198||$371|
See? A term life policy may not be as bank-breaking as you thought.
Life Insurance at 34
You are making an important decision to guarantee the future financial security of those you love the most. Our experience, knowledge, access to over thirty top insurers and committed, personal devotion to our clients can go to work for you today.
Getting started is easy!
Use the free term quoter on the side of this page!