The Best Age To Buy Life Insurance

For most young people, life insurance is a nice-to-have item, but not considered an essential. Student loans, credit card debt, or even saving for a home often take priority in younger years, however, according to Progressive, your 20s is the ideal time to buy life insurance. Purchasing a life insurance policy while you're young and healthy can help lock in significantly lower premiums on whole and even term life insurance policies — with term policies being the preferred life insurance choice of finance guru Dave Ramsey.  

Life insurance rates are closely tied to age and health, so, on average, younger individuals face a lower risk of actually needing it, which can help your policy rates. At a younger age, would-be policyholders also face fewer requirements, and have more coverage options than they would later in life. Because of these factors, the longer you delay buying life insurance, the higher your premiums will ultimately become. Ultimately, getting life insurance in your 20s can save thousands of dollars down the line.

Turning 30 might not feel like a major shift in your health and lifestyle, but for life insurance companies, it's a milestone that can cost you. According to Aflac, a healthy non-smoking 30-year-old man can expect to pay $238 a month in premiums while a woman can expect to pay $206. Those same individuals would pay $169 and $146 a month at age 20 instead. This represents a roughly a 41% increase in price for a $250,000 whole life insurance policy.

Delaying past your 30s can result in even more money leaving your pockets for the same life insurance policy. By age 40, men can expect to pay $355 a month whereas women will spend $296. By age 50, those figures jump to $543 and $462 a month respectively. While buying early can help lock in affordable rates, it's also important to understand that life insurance is usually a bad way to save for retirement. Purchasing the right coverage should serve to protect family members and loved ones, and not as an investment vehicle. Plus, it's important to research insurance types, and ensure you're avoiding unnecessary insurance products.