Why You Need Life Insurance in Your 30s & 40s

Life Insurance Awareness Month

Week 2: Why You Need Life Insurance in Your 30s & 40s

If you’re in your 30s or 40s, chances are you have a lot on your plate. You might be growing your career, raising children, paying your mortgage, or maybe dealing with aging parents. It’s a lot to juggle. However, one thing you shouldn’t overlook during this stage of life is life insurance. It’s one of the smartest decisions you can make to protect your growing family.

It’s Not About You, It’s About Them

Life insurance protection isn’t about you; it’s about providing financial stability for your family if the unthinkable happens. It acts as a safety net to protect your spouse or partner and your children in your absence. The right life insurance policy can help cover:

Everyday Expenses: Your spouse and children can say afloat without your paycheck.
Mortgage Payments: Your family can keep their home.
Childcare and Education: Your children can keep their futures on track.

Best Coverage Types for Growing Families

When you’re growing a family, there are two types of insurance coverage that could potentially fit your family’s needs. The first type is Term Life Insurance. Term Life Insurance tends to be the best fit for young families because of its affordability and simplicity. Term policies tend to be less expensive than permanent life insurance, and you get to choose how long you want coverage. Coverage terms can range anywhere from 10 to 30 years, which typically aligns with the years your children are financially dependent on you. You often get big coverage at a low cost, making this type of coverage appealing to young families.

The second type of coverage is Whole Life Insurance. While for most people term life insurance makes the most sense, Whole Life Insurance should be considered in certain circumstances. For many people who have a lifelong dependent, such as a special-needs child, Whole Life Insurance could be a valuable option. It could also be a consideration if you want to build cash value over time or use life insurance as part of an estate plan. With Whole Life Insurance, you get guaranteed lifelong coverage. However, whole life insurance tends to be more expensive and is usually best for those with higher incomes and unique long-term needs.

How Much Insurance Do You Really Need?

A common rule of thumb with life insurance is to get coverage that is 10 to 15 times your annual income. Your specific needs are dependent on other factors. Some factors to consider at this stage of life include:

How much debt you carry (student loans, mortgage, etc.)
The age of your children and their future plans.
Whether your spouse or partner relies on your income.

Next Steps

The best time to buy life insurance is when you’re young and healthy. Your premiums are based on your age and health, so getting a life insurance policy as soon as possible is non-negotiable. Locking in a policy in your 30s and 40s can save you thousands of dollars down the road. In addition, life changes quickly. A new health diagnosis or a job change during this period of life could impact your ability to quality down the road.

At First State Insurance, we can help you find a policy that best fits the needs of you and your growing family. Don’t wait until it’s too late. Get a life insurance policy early to provide a financial safety net for your family.

Click here to learn more about Life Insurance policies from First State Insurance.