Aflac: At what age should people get life insurance?

Many know the benefits of life insurance but don’t know if they’re at the right stage of life to get a policy.

However, premiums can increase with age, and the earlier one buys it, the less they’ll likely pay in monthly or annual premiums.

Life insurance can be a handy choice at any point in life.

This article will dive into how a life insurance policy can benefit people of all age groups.

How life insurance benefits different age groups

Life insurance can be a helpful tool at any stage of life. That makes getting it as soon as possible even more important.

Here’s how a life insurance policy can fit into someone’s financial picture regardless of the decade they’re in:

20s

People in their 20s may be able to get life insurance for cheap or free through work, but workplace plans often cap coverage at $50,000 for tax purposes.¹ That can work for someone in their 20s, but may not cover their expenses later in life as they take on more responsibilities.

Getting an external life insurance policy at this age helps the policyholder lock in substantial coverage at lower rates. This means protecting their wealth and family can be more affordable.

30s

People may get married and have families as they move into their 30s. This makes life insurance an excellent potential investment, especially since premiums are still relatively cheap.

According to Forbes, it costs an average of $444 per year for a healthy 30-year-old male to get a $500,000 term life insurance and $336 per year for a healthy 30-year-old female.²

Overall, it can be a great time for people in their 30s to protect their families while locking in lower premiums.

40s

Generally, people tend to enter their peak earning years in their 40s. They may be maxing out their retirement accounts and expanding into other investments.

At the same time, they may also have more assets, such as a home, and more responsibilities, such as growing children.

This can make any life insurance a good option, but especially a permanent life insurance policy. These offer lifelong coverage for higher premiums compared to term life insurance, and can fit the policyholder’s higher income.

There’s also a cash value growth component, which helps the policyholder save by contributing part of each payment and growing tax-deferred savings.

The policyholder can withdraw from or borrow against the cash value when it grows enough. If the policyholder decides to surrender their policy, they’ll get the full cash value minus surrender charges.

50s

Many people become empty nesters in their 50s, which may reduce a policyholder’s coverage needs. Meanwhile, retirement is approaching. Policyholders will think more about ensuring they have enough for retirement and an estate plan in place.

Life insurance still plays a role here. Building cash value offers policyholders an additional source of funds for retirement, paying for their kids’ college, and more. Riders like the accelerated death benefit rider can also help older policyholders and retirees use their death benefits for costs associated with qualifying illnesses or injuries.

As for estate planning, the death benefit is tax-free. This can help the policyholder pass down more wealth when they pass away since their heirs won’t owe taxes on the death benefit.

Get life insurance as soon as possible

The answer to “when should someone get life insurance?” is, essentially, as soon as one can afford it.

Getting coverage in their 20s helps policyholders save the most on rates while preparing for the future. People in their 30s can use it to protect their families and their assets, whereas it becomes a helpful wealth-building tool in the 40s. Policyholders in their 50s can tap into their cash value to pay for their kids’ college or even retire early.

Regardless of age, one should shop for several quotes to get the best possible rates on the coverage they need.

[Footnote sources]

¹ IRS. “Group-Term Life Insurance”

² Forbes. “Average Life Insurance Rates Of April 2023”

Aflac insurance coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.

Final Expense Whole Life Insurance is underwritten by Tier One Insurance Company.

The life insurance policy described herein contains an optional Accelerated Death Benefits Rider that is intended for favorable tax treatment under Section 101(g) of the Internal Revenue Code. Aflac does not give legal or tax advice. Please consult with a qualified legal, tax, and accounting advisor before engaging in any transaction. In AR, AZ, ID, OK, OR, PA, TX and VA: Policies ICC21‐ AFLLBL21 and ICC21‐AFLRPL21; and Riders ICC21‐AFLABR22, ICC21‐AFLADB22, and ICC21‐ AFLCDR22

Life – 68000 Series ‐ In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100‐ A68400. In New York, NY68100‐NY68400. Term/Whole Life – B60000 Series – In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Group Whole Life ‐ Q60000 Series ‐ In Arkansas, Policy Q60100CAR. In Delaware, Policy Q60200M. In Idaho Policy Q60100CID. In Oklahoma, Policy Q60100COK. In Oregon, Policy Q60100COR. In Texas, Policy Q60100CTX. Group Term Life Q60000 Series ‐ In Delaware, Policies Q60200C. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.

The content herein is provided for general informational purposes and is not provided as tax, legal, health or financial advice for any person or for any specific situation. Employers, employees and other individuals should contact their own advisers about their situations. This is a brief product overview only. Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY, or VA. Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost. Plans and riders may also contain a waiting period. Refer to the exact plans and riders for benefit details, definitions, limitations and exclusions. For availability and costs, please contact your local Aflac agent/producer. Aflac’s family of insurers include Aflac, Aflac New York, Continental American Insurance Company, and Tier One Insurance Company.

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