Let’s be honest with each other for a minute, Parenthood is hard. There is a lot of aspects that you need to “wing it” or see if google knows the answer! I know this may sound bias coming from us, but it is critical that when you have a family to look after, the next step is life insurance. I know it’s a hard concept to get your head around, doing research on “what ifs” especially when you might be young and fit. That’s the perfect time to look into the investment, age and health are two factors that impact the price of your life insurance as a whole. So, here is how you should view life insurance in your 20s, 30s & 40s.
I’m in my 20s, why on earth would I be thinking about life insurance?
The first question we would need to ask, who depends on your wage coming in at the end of the month? Is it just you or do you support a family? One of the main purposes of term life insurance is to cover your wages if the worst was to happen.
Do you currently have children? If so, life insurance is a must! Think of the everyday expense of your family, it gets expensive fast. In your 20s you are less likely to have any serious health conditions that could impact your life insurance premium, so we would recommend locking in those low prices while you can.
Again, it’s understandable that it’s a deflating subject, trying to assess how you will tend to your family if the worst was to happen but it’s only going to benefit you in the long run. It’s safe to assume that you would want to ensure that if the worst was to happen, at least your family would be financially stable when the time is tough enough especially if your other half is a “stay at home” parent.
Maybe you are in a position where you don’t have children, but you do have a house with your spouse, you and your partner are more than likely locked into your mortgage for the next 20/30 years. Could your other half afford to keep up with the payments on their solo income? Again, life insurance would be there to cover in case the worst was to happen.
So, I am in my 30s. Let’s talk about life insurance.
A lot can happen in your 30s in a small amount of time. It’s important your life insurance moves at the same pace. You may now be in a position where you have a growing income, a larger mortgage, a growing family therefore your life insurance may need a revision.
Admittedly, your policy in your 20s may reflect that life was a little more uncertain at that time. In your 30s, you have a better understanding of how many children you want, what your potential earnings is and when you might buy a home or finish the mortgage you have outstanding. This highlights the fact that your 30s is arguably the perfect time to invest into a life insurance policy or amend the one you bought in your 20s. As touched on before, if you are looking for the best cover you probably should’ve started in your 20s and your policy may be a little more expensive now you are in your 30s but if you are fit and well, there shouldn’t be a huge jump in price.
You’re in your 40s, time to start thinking.
This is often your last opportunity to take out a life insurance policy before the best prices jump a little further out of reach. Whether you are purchasing your first ever policy or you are looking to amend what you already have set up to cover your family and growing salary, you need to consider your expenses carefully. You may be in a position now where you may start to focus on creating a savings pot for your children’s education, helping out sick or ageing parents or trying to pay off your mortgage.
One aspect to bare in mind when shopping around for your policy is your retirement fund. Ideally, you have been saving since your early 20s and you now have a nice little cushion to enjoy your golden years on but in reality, life happens sometimes and that cushion may not be as plump as you would like. Either way, if you do have some money set aside you might even get a smaller policy than if you were in your 20s since that money will go to your family if the worst was to happen.
You could say, there in fact is no perfect age to take out life insurance as a whole but there is a best time for an individual situation. The recommendations and scenarios discussed above won’t work for everyone because everyone is unique. If you are on the fence and would like to iron out them creases, feel free to get it touch and we will help you though the process!