All Generations + Life Insurance = Increased Financial Security
If you're wondering when to get life insurance, there's no better time than during Life Insurance Awareness Month in September. Let's take a look at how your life insurance needs may differ by age. View full size infographic here.
Is uncertainty about your financial future keeping you up at night? One step you can take right now for more peace of mind is life insurance. Life insurance is a win/win for all generations, offering increased financial security across all ages.
Young people in their 20s and 30s can start building their financial foundation now with an extremely affordable life policy that fits their current budget and can grow with them. While older family members can rest easier knowing they are providing for their family’s future and possibly helping younger members fulfill their dreams.
For a young Minnesota couple in their early 30s with three children, a life insurance policy purchased earlier in their mid-20s ended up providing peace of mind and financial security for their family during an unexpected health battle.
“The couple had taken out some life insurance when they first got married in their 20s,” said State Farm Agent Ty Haschig. “When they started to have children, I encouraged them that it would be a good idea to review their plan again. They initially hesitated as they were busy and probably did not want to add more to their monthly bill.”
Ultimately, the couple did update their coverage to reflect the needs of their family and protect their future. Ten months after this policy update, the agent received a call where he learned the mother was facing cancer at the age of 33.
“This customer had so many emotions that her and her family were going through, but the one thing she no longer had to worry about was her life insurance protection,” Haschig said. “She thanks me every time for encouraging them to take action to update their coverage when they did.”
Haschig also recalls a family where several generations were impacted by a life insurance policy that a father kept for 86 years after receiving the policy gift from his father when he was only 9 years old. When the policy holder passed away at age 95, the family’s beneficiary visited Haschig’s office.
“When I met with his son, he brought in his father’s original policy. The policy, written in 1936, was purchased by the policyholder’s father when he was a child. He kept the policy in force for all those years because he appreciated the gift and hoped it would give his family peace of mind if something happened to him.” Haschig said.
Life insurance is for all ages
Life insurance may not be on your radar when you're a young adult in your 20s, but it's the best time to get coverage. Since you're young and likely healthy, you'll typically qualify for more affordable premiums. Start off with a small policy in your 20s to build the foundation of your financial security, and you'll likely want to expand your coverage throughout your life.
By the time you're in your 30s, you may have added children and a mortgage - which makes the financial protection offered by life insurance more important than ever. Life insurance coverage can help cover your children's education costs if tragedy hits and you are no longer there to provide for them. Now is the time to make sure you are fully insured as rates typically rise with age, so don't wait until you get older to bolster your coverage.
When you reach your 40s and 50s, your career is likely more stable than in previous stages of life, and your children may be nearing college age. If you haven’t yet, now is a critically important time to make sure your family is fully covered. If the unexpected happens, life insurance can possibly help your loved ones pay the mortgage, continue their standard of living, pay debts or help with college. The life insurance you choose can be there when it’s needed most by your loved ones. And as you approach retirement, life insurance can help you leave a legacy for your beneficiaries, and it can be a useful tool in estate planning.
Additionally, families can consider a final expense policy that helps cover the final expenses a family will face should the unexpected happen, including funeral and burial or cremation costs. Final expense insurance (or burial insurance) can help relieve the financial impact of a funeral. With the average funeral typically costing around $8,000, it’s important to consider if the cost of your funeral will create a burden for your family.
For over 100 years, the mission of State Farm has been to help people manage the risks of everyday life, recover from the unexpected and realize their dreams. State Farm and its affiliates are the largest providers of auto and home insurance in the United States. Its more than 19,400 agents and 67,000 employees serve over 91 million policies and accounts – including auto, fire, life, health, commercial policies and financial services accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is also available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 44 on the 2023 Fortune 500 list of largest companies. For more information, please visit http://www.statefarm.com.