Should I Get Life Insurance in My 30s?
There’s no time like the present! From affordability to more opportunity for long-term growth, below are five reasons why.
The short answer is yes. And yet, according to a 2023 LIMRA study, only 48% of millennials have life insurance (source). If you’re one of the 52% that isn’t insured and have been asking yourself, “should I get life insurance in my 30s?”, we’re here to tell you why you should – and sooner rather than later.
If you’ve been putting it off, we get it. There are so many options when it comes to life insurance that it can be confusing to know what you need at any age. And with so many expenses and so much to consider, adding life insurance to the mix can feel incredibly overwhelming.
You asked: Should I get life insurance in my 30s?
We answered: There’s no time like the present! From affordability to more opportunity for long-term growth, below are five reasons why.
1. Life insurance is most affordable when you’re young
Canadians without life insurance aren’t buying a policy because they mistakenly believe that the cost would be too high (source). And yet, the reality is that a Serenia Life Term 20 policy1 for $500,000 would cost a 30-year-old non-smoking woman less than $25 each month (see table below). A man the same age who also doesn’t smoke would be looking at approximately $8 more monthly. Still, both work out to be quite a bit cheaper than your monthly coffee runs. (Who knew?!)
Comparing Term Life: Should I get life insurance in my 30s vs 50s?
| $500K Coverage | Non-Smoking Female (Monthly Payment) |
Non-Smoking Male (Monthly Payment) |
||
|---|---|---|---|---|
| AT AGE 30 | AT AGE 50 | AT AGE 30 | AT AGE 50 | |
| Term 10 | $15.72 | $47.70 | $22.50 | $67.50 |
| Term 20 | $21.60 | $91.35 | $29.70 | $260.55 |
| Term 30 | $33.30 | $183.60 | $45.00 | $260.55 |
2. Life insurance can protect your small business.
As an entrepreneur, you need to think about the end goal of the business and how long you plan to stick with this particular venture. You also need to think about what sort of debt you’ve accumulated in order to follow your dreams. Any business loans in your name, for example, will be left for your next of kin to pay off in the event of your death. The good news is, the right life insurance can protect your small business AND your family.
Consider term life insurance to ensure your family isn’t left to pay your debt, or Business Partners Insurance if you’d like your business to live on beyond your lifetime.
3. Life insurance can replace mortgage insurance.
If you’re ready to buy your first home, you’ve likely heard about mortgage insurance. What you probably didn’t know is that term life insurance is a more flexible – and simply better – option for this sort of protection. It also comes with improved features, and is typically available at a lower cost.
Why? Because mortgage insurance only covers the outstanding balance of your home. So as the balance goes down, so does the insurance coverage amount. On the other hand, term insurance comes with a guaranteed payout (i.e., the amount of money your designated loved ones or family will receive in the event of your death), and – guess what – they can use it for a different purpose altogether if the mortgage is mostly paid off.
Not so with mortgage insurance, since the lender is the beneficiary (i.e., the person(s) you choose to receive your life insurance payout in the event of your death). Plus, if you ever move again, life insurance stays with you as the owner of the policy – whereas mortgage insurance does not.
Learn more about protecting your home (and the people in it).
4. Life insurance can help provide the same standard of living for your children.
Whether you’re the primary wage-earner, or if your family relies on two incomes to get by, life insurance can act as income replacement in the event you or your spouse were to die too soon. The last thing you want for your little ones is a drastic change in lifestyle when they’re already adapting to life after losing a parent. And purchasing life insurance is a good way to help provide financial security for your children when they need it most.
Did you know? Children of Serenia Life members are eligible for our Bereaved Child Benefit – an additional form of financial protection for little ones who have lost both parents.
5. It’s a good piece of any long-term financial plan.
For married couples or parents with additional dependents, life insurance can cover final expenses and help your family maintain their lifestyle should there be an unexpected death. And while it may seem far away, you will retire one day. While a whole life policy is more expensive than term life insurance, keep in mind that it lasts your entire life and comes with an investment component that grows over time.
The money you accumulate can help supplement other sources of retirement income. It can be used as a cushion, to pursue a hobby, for travel, or to start a new business venture.
Comparing Cost for 20-Pay Whole Life: Should I get life insurance in my 30s vs 50s?
| 20-Pay Whole Life Policy |
Non-Smoking Female (Monthly payment when purchased at) |
Non-Smoking Male (Monthly payment when purchased at) |
||
|---|---|---|---|---|
| AGE 30 | AGE 50 | AGE 30 | AGE 50 | |
| $25,000 | $58.05 | $94.05 | $60.30 | $97.88 |
| $50,000 | $107.55 | $176.40 | $111.60 | $184.05 |
| $100,000 | $196.20 | $322.20 | $202.50 | $335.70 |
Comparing Growth Potential for 20-Pay Whole Life: Should I get life insurance in my 30s vs 50s?
As you can see, the cash in a whole life policy has the potential to grow more the earlier you purchase the policy – this is money you can access when you need it later. If you think these numbers sound good, find out how much a baby or child can earn over their lifetime.
Let us help
If you’re still asking yourself, “Should I get life insurance in my 30s?”, it may be time to speak with the experts. They can answer any questions you might have, and help you find the right life insurance product at a price that suits your budget. Book a no-obligation call with one of our friendly Serenia Life advisors today!
Disclaimers
1 A Term 20 policy renews after 20 years at a guaranteed increased rate and is an affordable option for younger individuals. It can be converted to a permanent policy up until age 71 without the need for a medical evaluation.
