What Is the Best Age to Buy Life Insurance?

best age to buy term life

Key Takeaways:

  • Rates increase the older you get, so it’s important to buy term life insurance as soon as you need it.
  • Everyone’s life circumstances are different, so there is no single best age to buy life insurance.
  • Everyday Life Insurance’s dynamic term life plans were designed to help you avoid overpaying for coverage you don’t need. 
Table of Contents

No two people’s lives are exactly the same, and everyone reaches different life milestones at different ages. 

Some people graduated college at 21; others not until their late 20s or 30s. Some people buy a home in their 20s; others not until their 30s or 40s. Some people get married and have children really early, while others wait; some people retire in their 50s, while others don’t get that chance or choose not to until their late 60s or 70s. 

So when asking the question, “What is the best age to buy life insurance?”, the answer is: as soon you determine that you need it!

There is no one right answer that applies to everyone. Some people may never actually need life insurance. However, for those who are going to purchase a policy, taking care of it as soon as possible could save you a lot of money. 

How Does Term Life Insurance Work? 

Term life insurance is designed for people who want to protect their dependents for a certain period of time against the financial impact that would be made by their death. It is the most straightforward, simple type of life insurance available, and it’s also the most affordable. 

For example, say that Jill buys a 30-year term life policy worth $500,000. She pays monthly premiums to the insurance carrier of the plan.

In exchange for her paying those monthly premiums on time, the insurance company will pay that $500,000 amount to her beneficiaries if she passes away during that 30-year period. If she doesn’t pass away, what happens to the money she paid? Her coverage simply ends (unless she chooses to renew it). She doesn’t pay any more premiums, and her family does not receive that amount. 

How Much Coverage Do You Need?

If you are shopping for a term life policy, how much coverage you need varies depending on how much debt you have, how much you make, and how many dependents you have who rely on you for income/support. People with more kids and more debt will need more coverage than people with only children and little debt, people with higher salaries will need more coverage than those with lower salaries, etc. 

Not everyone pays the same premium each month for the same amount of coverage, though. Jill may pay $25.00 per month for $500,000 of coverage, but Jack (an unrelated stranger) may pay $32.00 per month for $500,000 of coverage. How much you’ll pay for coverage depends on your risk factors — how much it costs to insure you. 

One of those risk factors is age, which brings us to our main point….

The Younger You Are When Buying Life Insurance, the Cheaper Your Plan Can Be

There is an insurance term known as the “rate per thousand” that we refer to often. That is the cost to offer $1,000 of coverage, and it is generally lower the younger you are. 

Young people cost less to insure because, statistically speaking, they are less likely to pass away than older adults. They likely have more life ahead of them, and the odds that they will outlive their coverage (so the insurance company doesn’t have to pay them anything) are good, so long as they are in decent health and don’t go skydiving on the weekends. An average 25-year-old who buys a policy is going to pay less for it than an average 35-year-old will. 

For example, suppose that Jill (from our earlier illustration) is 24. She got married young and had children young; she currently has two toddlers, and she and her husband just bought their dream home in the ‘burbs.

But James (unrelated stranger) is also 24. He’s just finishing up a college degree, is only employed part-time, is renting a comfortable apartment, and isn’t married or with any plans of settling down anytime soon. 

When should Jill buy life insurance as a married person? It makes sense for Jill to buy a term life insurance plan at 24, because the longer she waits to get coverage, the more she’ll pay for it. Jill’s best age to buy term life is 24 or earlier.

But it doesn’t make sense for James to buy coverage at 24, as there are no people who depend on him for income. He will likely pay more than Jill does if he buys it five years later. James’s best age to buy term life might be 29, 31, or later. 

That’s why the best age to buy term life isn’t set in stone or the same across the board, but the best time to buy life insurance for you is when you are young and have dependents. Your life insurance costs can be lower, and you can save the most money buying a policy then.

The Average Cost of Life Insurance by Age with Everyday Life Insurance

Everyday Life Insurance is the first insurance company to offer smart term life plans that can save you even more over the life of the plan, no matter how old you are, but especially for younger families. 

Most term life insurers offer one amount of coverage that stays the same for the entire term, but your life changes so much from year to year — shouldn’t your coverage change with it?

Chances are, as your life goes on, you’ll need less coverage. We personalize policies that match your coverage to your unique needs and make sure you’re not overpaying by only giving you the term life insurance coverage you absolutely need. This is a new kind of policy, and can save you thousands of dollars over the life of the plan!  

We use Predictive Protection to assess your life needs and goals and then provide a personalized plan recommendation.

The best way to find out how much coverage you need and how much it will cost is to use our Ultimate Life Insurance Calculator, but here’s a look at what the average cost of our plans are, by age, so you can get a better idea of what your best age to buy term life may be: 

You can get your free, personalized quote now, 100% online, without having to provide any contact details or speak with pushy salespeople, in less than 5 minutes!

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