The Best Life Insurance Policy for a 30 Year Old Is VERY Affordable!
Life Insurance Quotes 30 – 39
The Best Life Insurance Policy for a 30 Year Old is SUPER affordable ladies and gentleman. This is a great time to buy life insurance coverage.
Why?
Because it’s likely that you’re fit and healthy – which means life insurance companies give you preferential rates.
If you’re raising a family life insurance is a no brainer. It provides a financial safety net just in case a tragic scenario unfolds.
Sure we all want to believe we’re superhuman, but the fact is we’re all going to die. It’s just a question of time. So why not buy life insurance while the going is good?
30 somethings considering life insurance read on! This is the post for you.
Who Am I & Why Do I Care?
My name is James Heidebrecht, the founder of Policy Architects. I am a father, stepfather, and husband. In a nutshell, I have a LOT of responsibilities. If my paycheck was to simply stop my family would be left in a financial mess.
Sure my wife makes some money, but our income would be halved and chances are she and the kids would have to sell the house to find something more affordable.
Can you imagine anything worse during a time of mourning? The sad thing is this is the outlook for the majority of families in Canada if a major breadwinner dies.
Most of us have debt and serious obligations that lead us to live from paycheck to paycheck. While we are healthy this is not a problem. But death throws a serious spanner in the works.
There's no easy way to say this...when you die, your paycheque dies with you!
On the way home from our trip to North Carolina this summer a car flipped over in front of us – we were 30 seconds away from the collision. It was a huge wake-up call. You can plan all you like but something can happen in seconds that virtually changes everything.
That’s where life insurance for 30 year olds comes in. I am an independent agent and want to share the information I have so you make an informed choice when you buy your coverage. This is why I created this blog.
The Best Life Insurance Policy for a 30 Year Old
VERY Reasonable Life Insurance Rates Ages 30 - 39
The Best Life Insurance Policy for a 30 Year Old is incredibly affordable. Yes indeed! This is because the cost of your premiums, the payments you make to the insurer, are based on your personal circumstances.
So as you can imagine when you’re in your 30’s your risk of dying is substantially lower than when you are in your 50’s.
Sure there are always exceptions to the rule, but for the most part, young people are healthier.
For the purposes of sharing rates, I’m discussing term life insurance because it’s the most affordable option and suits most people most of the time.
That being said, there are also permanent products that I’ll talk about later in the article.
Basic Term Life Insurance Rates in Your 30's
Now back to term rates. I want to look at the average cost of term life insurance for a 30 year old and up!
Life insurance is a business so companies employ crack underwriters to review the results of your physical exam and questionnaire. They assess the risk the insurer takes on when they provide you with coverage.
If the risk is very low they pass the savings on to you through something called a preferred rating. The more risk the lower the rating and the more you pay.
For the purposed of this article I am using Standard rates because this is the rating most people receive so it provides the most realistic idea of how much you pay:
Wawanesa Life Insurance Rates
Standard Rating, 20 Year Term
 | ||
| Age | $500,000 | $1,000,000 |
| 30 Year Old Male | $30.60 | $60.30 |
| 30 Year Old Female | $22.50 | $44.10 |
| 31 Year Old Male | $31.05 | $61.20 |
| 31 Year Old Female | $22.95 | $45.00 |
| 32 Year Old Male | $31.50 | $61.20 |
| 32 Year Old Female | $23.82 | $46.80 |
| 33 Year Old Male | $31.95 | $62.10 |
| 33 Year Old Female | $24.75 | $48.60 |
| 34 Year Old Male | $32.40 | $63.00 |
| 34 Year Old Female | $25.65 | $50.40 |
| 35 Year Old Male | $32.85 | $63.90 |
| 35 Year Old Female | $26.55 | $52.20 |
| 36 Year Old Male | $35.55 | $69.30 |
| 36 Year Old Female | $27.90 | $54.90 |
| 37 Year Old Male | $38.70 | $75.60 |
| 37 Year Old Female | $29.70 | $58.50 |
| 38 Year Old Male | $41.85 | $81.90 |
| 38 Year Old Female | $31.05 | $61.20 |
| 39 Year Old Male | $45.00 | $88.20 |
| 39 Year Old Female | $33.30 | $64.80 |
| 40 Year Old Male | $48.60 | $95.40 |
| 40 Year Old Female | $35.10 | $69.30 |
*Quotes above are for Wawanesa Life’s 20 year term, monthly, Standard Health Class, non-smoker. Your rates may differ depending on your unique circumstances. October 2019.
Sample Term Life Insurance Rates: Affordable Life Insurance 30 - 40 Years Old
Now take a look at those rates. Imagine going to sleep every night knowing that if something happens to you, your family is taken care of. It takes a lot of pressure off.
Don’t get me wrong I know it’s an investment, but when you think of it compared to other expenditures in life it really puts things into perspective.
My wife and I ordered some takeout Thai food for the family last night. The meal set us back about $70.00. Now compare that to $1 Million in coverage for a 36 year old man, which costs about the same. Do you see what I mean?
Hey, and if you’re a woman you pay even less! This is because statistically speaking women live longer than their male counterparts. So a 36 year old non-smoking woman with a standard rating will pay $63.90 with Wawanesa Life Insurance.
Rates DO Start to Escalate in Your 40's - So Let's Take a Gander
You can see the cost of life insurance for 30 year olds escalates. This is one of the reasons you should never put off purchasing coverage. The longer you wait the more money you spend. You also run the risk of new medical issues cropping up.
Let’s take a look at what happens throughout your 30’s:
- Life Insurance Ages 30, 31, 32, 33 & 35: As you can see life insurance premiums don’t spring up at this point. You may save a few dollars applying earlier, but the rates are very low and stable, only increasing approximately 1% annually.
- Life Insurance Age 36: There’s a bit of a bump here. Premiums cost this client $69.30 for $1 million of coverage as opposed to the $63.90 he would have spent at age 35. That’s $1296.00 more over his term.
- Life Insurance Age 37, 38 & 39: Your rates steadily increase at this point, approximately 8% per year. If our client waits until he is 39 to buy coverage he pays $6,696.00 more than the 30 year old over his term! This really gives you some insight into what the underwriters are thinking when it comes to your age.
- Life Insurance Age 40: Well you’ve reached another milestone and your rates are 60% MORE than that of a 30 year old. True your coverage will last into your later years but depending on your situation you may or may not need that. Our 40 year old client now pays $8,424.00 more over the course of his term.
Wow! As you can see age plays a very large role in how much you spend on life insurance, but that’s not all my friends, we have much more!
The Best Life Insurance Policy for a 30 Year Old & Up - Your Health
Your health plays a big role when it comes to getting the best life insurance policy for a 30 year old (and up!). I would say this is one of the biggest concerns my clients have when they come to see me. Virtually everyone is worried about their medical exam and what it may reveal.
Well, I am here to tell you that most are VERY uneventful. Yes, I’m going to break it you right now. Chances are you are healthier than you think!
My guess is Google doctor is to blame for a lot of the health anxiety I see. People overestimate their aches, pains and simple medical issues. The good news is most clients get by with a standard rating!
Yes! Unless you have a serious medical issue people are rarely rated or declined. Of course, everyone has a different situation and there are those that have justified concerns, but I wanted to be the bearer of good news for this article.
Keep Up With Your Health
The key to getting away with medical issues not impacting your premiums too much is control and time. For example, if you have elevated cholesterol you won’t be considered high risk if you’ve been treated successfully for 12 months. The same holds true for high blood pressure. This is another great reason to take care of your health.
It really can save you a lot of time, money and heartache.
So let’s take a peek at the difference in rates for a standard rating vs preferred rating for a female nonsmoker now! For the purposes of this section I am using BMO rates.
BMO Life Insurance Term 30: $500K Coverage for a 30 Year Old Female
"Standard Rating"
Well as I mentioned above you can see there is a big difference between rates for men and women at BMO. A 30 year old man pays $4,212.00 more over the course of a 30 year term than his female counterpart. All things considered equal, men pay approximately 40% more across the board for life insurance.
Ok back to business. This client has some medical issues but we squeaked through with a standard rate at BMO and she is psyched.
BMO Life Insurance Term 30: $500K Coverage 30 Year Old Female
"Preferred Plus Rating"
This client is also a 30 year old nonsmoking female BUT the difference is she’s in phenomenal shape with no family history of serious medical issues. BMO offers her a preferred plus rating and she is thrilled!
Over the course of her term she spends $2592.00 less than our client with a standard rating.
BUT what if our client is a smoker in standard health? Well, now that’s a different story altogether. OUCH! That same coverage is gonna cost her $70.20 per month!
Which means she will pay:
Some simple advice? Don't smoke or start a cessation program if do smoke. It will save you lots of money and your lungs will thank you!
The Best Life Insurance Policy for a 30 Year Old & Up
Picking the Right Company
I have a few really big points I like to get across in these articles. The primary concept I’d like to impart is that all life insurance companies are not created equal. This is why I’m working on a series of reviews.
It’s important to accept this fact and work with a knowledgeable independent agent that is familiar with the ever-changing terrain of the underwriting policies of these companies.
Why?
Did you know each insurer handles the way they approach medical issues differently? Some are more lenient than others for specific health conditions and this is where you can save a lot of money.
If you go to a tied agent they ONLY represent the products of the company they work for. So let’s say the insurer you are considering is really tough on Type 2 Diabetes and you have it…this means you’ll spend a boatload more money than you should if you don’t do your homework.
Some carriers right out of the gate rate a healthy type 2 diabetic at 150%. This means If the standard rate is $50 per month, diabetics pay $75.
There are a few carriers that consistently underwrite type 2 diabetes at standard rates, provided the applicant is healthy and the diabetes is well managed. Wouldn’t you like to work with an agent who knows who these life insurance companies are?
Always Use an Independent Life Insurance Agent
An independent agent is familiar with all the companies and their competing interests. Their job is to direct you to an insurer that’s more lenient for Type 2 Diabetes. This may mean the difference between getting a standard rate or being rated – which translates into a savings of 10’s of thousands of dollars.
The Best Life Insurance Policy for a 30 Year Old & Up
Why YOU Need Life Insurance
Everyone lives their lives differently. That being said, if you want a family your 30’s is a great time to start. A large percentage 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 30’s to get life insurance? I am going to share the most common situations now:
The Best Life Insurance Policy for a 30 Year Old & Up:
Income Replacement & Family
If you are in your 30’s 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 important to plan for detrimental situations BEFORE they happen.
Children are another reason to get life insurance coverage. Parents come to see me when they realize how precarious their financial footing is and reach out for some insurance advice.
…but this is not all!
Student Loans: Did Your Parents Cosign Your Debt?
A university or college educations is COSTLY.
If you are lucky enough to go to law or medical school you may require a large loan. Quite often these loans are backed up by family because of a lack of collateral. In your 30’s this debt may or may not be paid off.
If you still have student loans that you’re parents are on the hook for it makes sense to take out some term coverage to be sure they don’t get stuck paying that bill if something unforeseen happens to you.
You see? There are lots of ways life insurance can be used in your 30’s.
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
The Best Life Insurance Policy for a 30 Year Old & Up
Divorce
Marriages aren’t as resilient as they once were. In fact, there is a term “starter” wife/husband that was created because some people marry very young, have children and realize that they are not compatible. Situations such as this often happen in your 30’s.
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. Which 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.
I’m writing an article about this in the near future.
The Best Life Insurance Policy for a 30 Year Old & Up
Entrepreneurialism
The world is a really 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 more and more popular because we have the tools to easily set up businesses. So it’s quite possible you own your own company in your 30’s.
If that’s the case, life insurance can protect your partners, employees, and clients from your untimely death. It also assures your business continues even if you aren’t there.
If you own a business give us a call today. We can go through all the options available to protect your company, family and employees.
The Best Life Insurance Policy for a 30 Year Old & Up
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 it’s a great idea to get your foot in the “life insurance door” when you’re young and healthy.
During this period rates are low!
Did you know you can get also get a guaranteed insurability rider added to your coverage? Yep! This allows you to purchase more coverage after your term expires without a medical exam. So if your health declines you’re not forced to take another medical exam – running the risk of being seriously rated or declined altogether.
This is a terrific perk of buying life insurance in your 30’s.
Also, make sure your policy contains a conversion option which allows you to switch your coverage to permanent insurance without reapplying. Which brings me to the type of life insurance you should buy in your 30’s…
Best Type of Life Insurance for a 30 Year Old & Up
Term or Permanent Coverage?
So what’s the best type of life insurance for a 30 year old and up? Well, you need to know there’s a choice. Basically, life insurance consists of two kinds of policies.
BUT there’s a whole lotta variation when it comes to products. This is why you need the services of an independent life insurance agent. We know all the ins and outs of the offerings proffered by the best insurers in Canada. Each company has their take on types of life insurance, so it’s important to know what’s on offer before you dive in.
For the most part, term coverage is the best option for those of you looking for life insurance in your 30’s. To sum it up, term insurance is temporary and provides coverage for a specific period of time (ie. 10 or 20 years) to protect your family when they’re most vulnerable.
This typically is put in place as income replacement for those periods when you most need it. Remember, God forbid, if you leave this earth unexpectedly, your income is terminated for good.
Life Insurance 'til the Day You Die
Permanent insurance, on the other hand, 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 30’s.
The biggest problem here is making sure your payments don’t fall through the cracks in times of financial uncertainty. Sadly this happens to a lot of people and they lose their shirts.
The type of insurance you select depends on your personal circumstances. For the most part, I find term fits the bill. BUT if you fall into the following categories permanent insurance is a great tool if you:
- have an estate that needs to be protected from excessive tax
- are a high-net-worth individual and your business is a cash cow
- looking for additional tax shelter because you maxed out everything else
- have a business or a child with special needs
- want to cover final expenses
If you think a permanent policy would work wonders for you, give Policy Architects a call today. It’s a complicated product with a lot to consider. You want to make sure you get the best possible advice BEFORE you sign on the dotted line.
How Much Coverage Does a 30 Something Need?
Your 30’s are a complex time. People are waiting longer to have families. So you may be traveling Europe with your friends during the holidays OR maybe you have a smokin’ career and a family.
Everyone is different. The one thing I know for certain – generalizing is a bad idea.
So for the purposes of this article, I’m going to give you a couple of examples to show you just how different things can be.
My first client Sophia is living with her boyfriend. They just purchased a house and her parents lent her the money for the painful downpayment on a home in Toronto.
If something happens to Sophia or her partner Jim, her parents can’t afford to lose the money. Always thinking ahead Sophia called me for some life insurance coverage – just in case.
The thing is Jim’s an artist and his income is hit and miss. Sometimes he gets paid a bomb but there’s no guarantee. Sophia on the other hand works for a big bank and makes some good cash.
The home they bought cost $1 Million and they have an $800K mortgage – which means her parents lent her $100K to cover their shortfall for the downpayment and closing costs. How much life insurance does Sophia need?
Sophia Gravely Underestimates Her Needs
When Sophia came to see me she wanted a $100K policy to cover her parents. While I love the way she thinks – she’s seriously off base.
Her income is currently $150K per year and Jim’s contribution is not predictable. For example last year he only made $40K but this year he’s on target for $75k. Sophia wants Jim to be able to stay in the house if she dies but this is impossible without more coverage. She also expects to make in excess of $200K later in her career.
After a needs analysis Sophia realizes that she needs much more coverage. The good news is she’s young and healthy and $2 Million of coverage for 30 years will only cost her $133.65 per month! This is because she is young and received a preferred rating from BMO.
Now this example is tricky because she won’t always owe her parents and the bank that sort of money – so theoretically she may be overinsured at some point.
The thing is she wants kids and it’s likely they will upgrade the house at some point. Not to mention the fact that her income replacement figure is growing.
Another Reason to Go Independent
This is why calling Policy Architects was a great choice. We have some terrific ideas about Sophia (and you) can save money. For example, layering her coverage is another way to achieve balance. Contact us today to find out what I mean.
Graham's Never Having Kids
My next client Graham doesn’t want a family.
He is 39, lives on his own and has no intention of getting married or having kids. He likes having a relationship and is a terrific Uncle but thoroughly enjoys his independence.
Graham makes a lot of money and in fact, his condo is nearly paid off. Hey, he started early. The one thing is he’s concerned about are final expenses. He doesn’t want his family to worry about it and he knows he won’t go out of his way to plan later in life so is looking for a small final expense policy.
I like the way Graham thinks. He loves his family and doesn’t want them to have to take this burden on.
A small $20,000, 20 Pay, whole life policy with Equitable Life of Canada will only set him back $34.64 per month. Also if need be, he can access the cash value or borrow against it if he runs into financial issues down the road.
Graham’s policy will be all paid up by age 59 and if he makes it to age 70, the death benefit will likely be $28,000. Not to mention, he will have only paid $8,313.60 into the policy over the 20 years.
Not bad!
Charlie & Joan Have Kids, a Mortgage & Debt
At age 36 Charlie is worried about the future of his family. He and his wife Joan got married at 30 and now have 3 kids, a dog, and a $500K mortgage.
Joan, 33, is a stay at home mom and there’s no way his loved ones could stay in the house without his paycheck. Charlie makes about $100K per year and they sure aren’t rolling in it.
He’s concerned that if something happens to him, his family will be utterly destroyed and he’s right.
We do a needs analysis and determine that Charlie requires at least $1 Million of life insurance coverage to achieve his goals. A good, quick rule of thumb – if you have small children, you should have at least 10 times your income in coverage.
You should also have a minimum coverage term of 20 years to protect your family when they’re most vulnerable. Charlie has some medical issues, but they are under control right now. The good news? We manage to get him $1.5 million of coverage for 20 years, standard non-smoking rate with Empire Life at $97.65 per month.
Underestimating Needs is Common
When Charlie first spoke to me he thought $500K would be more than enough to cover his family. That’s a lot of money but if you do the math, $500k will replace Charlie’s after-tax salary (approx $72k) for approximately 8 years.
Does that buy Joan enough time to continue caring for their kids while transitioning into to the workforce so she can earn enough money to cover their current lifestyle when the insurance proceeds run out? Will there be other expenses? What about college?
When we examined it this way, Charlie realized just how much of a loss his death would be. After reviewing all the outgoings and his vision for the future he now knows that $500,000 leaves him sadly underinsured.
Stay-At-Home Moms Need Life Insurance Too!
But hey, let’s not forget about Joan. What happens if she dies tomorrow with no life insurance? Is Charlie going to suddenly stop working so he can stay home and take care of the kids?
Joan doesn’t earn an income per se but how much would it cost Charlie to pay someone else to do the work she does? One of their children is a pre-schooler and the 2 others are in primary grades. They need to be walked to school, the pre-schooler needs full-time attention not to mention, all the other household duties – laundry, shopping and preparing meals need to be taken care of as well.
We often forget, a stay at home parent makes a valuable contribution to the family both socially and economically.
Joan figures a full-time nanny would cost Charlie about $40,000 annually for 10 to 15 years. Averaged out, $500,000 would definitely cover it.
A $500,000, 20 year term policy for Joan through Empire Life costs $25.20 per month. But they elect to increase her coverage and go with a $1 million policy at $44.10 per month simply because it’s so affordable.
Knowing there won’t be a financial burden on the family if either one of them dies prematurely, provides them with great comfort.
Their total outlay? $137.25 per month combined. It sure doesn’t break the bank at 2% of their net monthly income.
Different Strokes for Different Folks
Well as you can see there are a LOT of different scenarios out there. These examples don’t even scratch the surface. The long and the short of it is – each person has a different requirement and that’s why it’s so important to do a needs analysis and meet with an independent life insurance agent.
We go through your medical history, financial situation (present and future) and review your goals. The cool part is this consultation doesn’t cost you a dime.
Call us today! We can help you find the best possible coverage for your needs!
While just one in 10 Canadians say they’re not getting by financially, another 68 per cent say they “have to think about how they spend money.” And concern over jobs ranks seventh in terms of what worries Canadians the most. It’s easy to understand where those concerns come from. Debt levels remain high. Wages are finally beginning to rise, but growth has been stubbornly low for decades.
Despite a strong economy, cost of living still top of mind for Canadians, CBC.com
Policy Architects to the Rescue!
So what’s the best policy for a 30 year old (and up)!?
Well now as you can see, there is no one size fits all sort of answer. I think a lot of people want instant pudding.
This explains the rise of automated life insurance. Log in to get the cheapest rates with little or no effort. Sure there are some positive aspects to fast and easy…
..but I will tell you no food company has been able to replicate REAL pudding with the instant variety. What’s missing? Time, effort and the human touch. This is what we offer.
We talk to you about the amount of coverage you need, the term length and assess if you the policy you are looking at fits you long term.
Policy Architects is a boutique life insurance agency. We are real people with real families. Helping you to help your loved ones is our goal. Call us today because we care.
