Why should you consider a term life insurance between 30 and 40 years?

During the pivotal decades of your 30s and 40s when you could be a homeowner, have young children or even have kids going to college, financial experts recommend taking out life insurance temporary.

"Term life insurance is" pure life insurance, "says Logan Sachon, editor of the Policygenius insurance comparison website. "You buy a term policy – usually 10 to 30 years – and you pay premiums to keep your coverage active during that period, and if you die during the term, your beneficiaries will receive a death benefit. do not die during the term – the preferred outcome – your coverage ends at the expiry of your contract and you receive no refund, "Sachon said.

Mark Cluett, Content Director of the Canadian PolicyAdvisor.com Life Insurance Comparison Site, says term life insurance is particularly beneficial for people between the ages of 30 and 40 who are experiencing major events in their lives, such as get married, have kids and buy a house. "It is also useful for those with temporary needs later in life, such as helping the beneficiaries, paying for their children's education and paying off their debts," he said.

Life insurance rates are based on the calculation of your mortality by an insurance company, so the rates are lower when you are younger. So, buying in your thirties or forties can be smart.

"In fact, rates increase on average 8% each year as you get older," says Sachon. Beyond that, she says, a new diagnosis could make your rates even higher. "For example, anxiety, high blood pressure and high cholesterol are common diagnoses that could lead to increased rates," she says. "Some diagnoses may even prevent you from taking out term life insurance – for example, a terminal illness."

Policygenius can help you compare coverage options to find the life insurance that's right for you

In addition, even if you do not intend to purchase permanent or full life insurance (options that do not expire and are more often recommended for people with a weakened financial situation), subscribing to a Temporary police when you are young and healthy will protect you future and lock options on the road.

"Most operators will allow conversion to permanent products across the board without any further medical or underwriting reviews," said Ty Stewart, Founder of SimpleLifeInsure.com Founder. This means that even if you develop a serious health problem that would cause a decline in your new life insurance proposal, you can keep your coverage, if you wish, by converting it, he adds.

Overall, a term life insurance policy can provide a financial safety net and peace of mind, generally at an affordable price. "The term life insurance will be the best option, simply because it's the most profitable type of contract," said Jeff Zander, CEO of Zander Insurance, a brokerage firm in the United States. independent insurance.

"By paying less for a term insurance policy, people can use the money they save to solve problems such as paying off their debts and building up a legacy." , did he declare. "Thus, at the end of the policy term, their level of financial risk has been reduced (or even eliminated) and they will no longer need an insurance policy. life. "

Buying a term life insurance is the "cheapest way to get the full coverage you need," he says.

Are you considering term life insurance? Policygenius can help you compare rates to find the best coverage for you »