DO I NEED LIFE INSURANCE AT MY AGE?

Taylor Swift. Mariah Carey. Stevie Wonder. What do these people have in common (besides powerful lungs and a few Grammys on their shelves)?

Despite their age differences, all three have a need for the protection life insurance provides. Whether you’re a Taylor, a Stevie or someone in between, you have protection needs too. However, the reasons behind those needs are likely different.

Age is just one factor that influences the type of life insurance you purchase, how much you need and the primary reason for owning it. Read more to find out what someone in your age group may want to consider.

Children and teens

Common avoidance tactic:

“I don’t want to think about avoidance my child dying.”

Consider this: 

Think of life insurance for kids as an investment in their future. You’re giving your child a financial head start in life. And you can do it for as little as a few dollars per month.

Common reasons to purchase/own life insurance:

  • To protect insurability. 
  • To lock in lower premiums on permanent plans.

Did you know?

About 19 percent of children ages 6 to 17 are considered obese. This puts them at higher risk for health problems that could affect their insurability. (Source: childstats.gov, 2016)

Twenties

Common avoidance tactic:

“I’m not going to die any time soon. I can wait to buy life insurance. It’s too expensive.”

Consider this: 

Life insurance will never be cheaper than it is while you’re young and healthy. By planning ahead, you’ll ensure you have the protection you need when you need it … and at a more affordable price.

Common reasons to purchase/own life insurance:

  • To protect insurability.
  • To lock in lower premiums on permanent plans.

Did you know?

On average, people estimate life insurance costs three times more than it actually does. (Source: LIMRA, 2016)

Thirties

Common avoidance tactic:

“I know I need it, but I have no time.”

Consider this: 

It’s time to make time. Yes, you have more obligations now than ever before. That also means you have a greater need for life insurance than ever before. Working around your busy schedule, Ruth Ahnen, your local Modern Woodmen representative, can help you find the right plan to fit your needs and budget.

Common reasons to purchase/own life insurance:

  • To replace income that would be lost if you die.
  • To cover the mortgage and other debts.

Did you know?

Four in 10 U.S. households with children under 18 say they’d have immediate financial trouble if a primary wage earner died today. (Source: LIMRA, 2016)

Forties

Common avoidance tactic:

“I already have some life insurance.”

Consider this: 

The question is, do you have enough to cover your needs? Those obligations you had in your 30s are likely still there. Plus, as you’ve progressed in your career, you may have gained a higher income level and lifestyle you need to protect.

Common reasons to purchase/own life insurance:

  • To replace income that would be lost if you die.
  • To cover the mortgage and other debts.

Did you know?

The average insured house- hold has enough life insurance to replace just three years of income. This is far lower than most industry recommendations. (Source: LIMRA, 2016)

Fifties

Common avoidance tactic:

“I already have some life insurance.”

Consider this: 

The question is, do you own the right kind? You may need less coverage now, but you still have protection needs – children in college, a spouse who relies on your income or perhaps an aging parent to care for. Maybe your health is a concern. Regardless, your need for a personal plan of permanent insurance is important in this life stage.

Common reasons to purchase/own life insurance:

  • To replace group coverage lost due to an upcoming retirement. 
  • To provide support for those who still depend on you if you die.

Did you know?

Nearly 7 in 10 employees are offered life insurance through their workplace. Many will lose their only coverage if they retire, change jobs, or become unemployed. (Source: LIMRA, 2015)

Sixty plus

Common avoidance tactic:

“My kids are out of the house now. I’m too old for life insurance.”

Consider this: 

You may no longer have a family to support, but you still have life insurance needs. In addition to covering final expenses, life insurance can protect your spouse in retirement, help settle an estate, or help you leave an inheritance to loved ones or support a favorite charity after you’re gone.

Common reasons to purchase/own life insurance:

  • To cover funeral and medical expenses.
  • To minimize the effect of taxation on retirement plans.
 

Did you know?

The average cost of a funeral (with a vault) is more than $8,500. This doesn’t include cemetery, monument/ marker, flower and other miscellaneous charges. (Source: National Funeral Directors Association, 2015)

 

Ruth Ahnen, a Modern Woodmen financial representative in Davenport, can help you review your options for college savings, retirement and life insurance. A variety of options are available to fit your unique situation. 


Disclosure: Thanks to Ruth  for sponsoring today’s post. We at QCMB love working with local businesses to share positive information and make our community a better place to live, work and play.

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