The Best Life Insurance for 30 Year Olds! Save Money Over Time

Why YOU Need Life Insurance

Everyone lives differently. That being said, if you want a family, your 30s is a great time to start. Many of my clients come to me in this decade because it’s when things start to get real.

So, what would compel someone in their 30s to get life insurance? I am going to share the most common situations now:

1. Income Replacement & Family

If you are in your 30s, chances are you have a job, some debt, and maybe even a mortgage. If you’re married and own a home with your spouse, a life insurance policy can protect them in case your income suddenly ceases due to an untimely death.

I think this is something couples often forget about when they move in together.

A dual-income family is a norm these days, so it’s essential to plan for detrimental situations BEFORE they happen.

Children are another reason to get life insurance coverage. Parents often look for the best life insurance for 30 year olds, when they realize how precarious their financial situation is and seek insurance advice.

…but this is not all!

2. Student Loans: Did Your Parents Cosign Your Debt?

A university or college education is COSTLY.

You may require a large loan if you are lucky enough to go to law or medical school. Often, family backs these loans up because of a lack of collateral. In your 30s, this debt may or may not be paid off.

If you still have student loans that your parents are responsible for, it makes sense to take out some term coverage to ensure they don’t have to pay the bill if something unforeseen happens to you.

You see? There are lots of ways life insurance can be used in your 30s.

“If you want to study at postgraduate level, the tuition fees are generally lower, and again vary depending on your program. Statistics Canada puts the average postgraduate tuition fee at CA$16,497 in 2018/19, which is approximately US$12,500, and only a one percent increase from the previous year. As is the case worldwide, executive MBA programs are generally the most expensive, averaging around CA$49,798 (~US$37,700), while regular MBAs cost CA$30,570 (~US$23,160) on average.”How Much does it Cost to Study in Canada, TopUniversities.com

3. The Best Life Insurance for 30 Year Olds: Divorce

Marriages aren’t as resilient as they once were. The term “starter” wife/husband was created because some people marry very young, have children, and realize they are incompatible.

If you have a child with someone and you’re no longer married – a prerequisite of your divorce may be taking out a term policy to cover the loss of alimony or child support in the unlikely event of your early death. This protects the surviving spouse from financial issues that arise.

Even if the partner who dies isn’t providing financial support – time is money. This means if you have joint custody, a lot will change if there is a death.

It gets even more complicated if you have a second family. A life insurance policy may even be used to level out inheritances. But this is typically done with permanent insurance.

4. Entrepreneurialism & Protecting Your Business and Employees

The world is a different place today. I remember the days when you picked out a profession, got training, applied for a job with benefits, and stayed until you either retired or something better came up.

This isn’t the case now. People switch careers, jump from job to job, and start their own companies. It’s an exciting time that lacks some of the security of the past.

Entrepreneurialism is becoming increasingly popular because we have the tools to easily set up businesses. So, owning your own company in your 30s is possible.

If that’s the case, life insurance can protect your partners, employees, and clients from your untimely death. It also assures that your business continues even without you.

6. Future Insurability

You can depend on one fact—life changes.

While you may be as fit as a fiddle today, that can and will change. That’s why getting your foot in the “life insurance door” is a great idea when you’re young and healthy.

Rates are low during this period! Did you know you can add a guaranteed insurance rider to your coverage? Yep! This allows you to purchase more coverage without a medical exam after your term expires.

If your health declines, you’re not forced to take another medical exam – running the risk of being seriously rated or declined altogether.

Please ensure your policy contains a conversion option to switch your coverage to permanent insurance without reapplying.

7. Life Insurance ’til the Day You Die

On the other hand, permanent insurance protects your family until the day you die and usually has a cash value accumulation feature. This means there’s a guaranteed payout as long as you keep up with your premiums—which, compared with term insurance, can be pretty hefty even in your 30s.

The biggest problem is ensuring your payments don’t slip through the cracks during financial uncertainty. Sadly, this happens to many people, and they lose their shirts.