Why You (Probably) Need Life Insurance In Your 30's

Maybe you’re buying your first home, getting married, or having kids. Or perhaps you’re navigating all three of those massive moves and starting a business. Whatever you’re going through as a 30-something, chances are there’s one thing you may not be thinking of: life insurance.

According to our 2020 Financial Legacy Index, the majority of Americans haven’t yet taken critical steps toward protecting their family’s financial future if the unexpected happens. While you’re likely to be busy tackling some significant life events in your 30s, you’re also likely among the 52% of Americans who say they often worry about the financial situation they will leave behind for their loved ones after they pass away. Now is the time to plan for your family’s future, and there’s no better way to start than to invest in a life insurance policy that makes sense for your situation.

Why would you need life insurance in your 30s?

Let’s be honest—when most people think of life insurance, they’re likely thinking of a safety net that’s more of a pressing need later in life. But because of all the big changes and responsibility shifts that occur between the ages of 30 and 40, a life insurance policy at this time in your life makes perfect sense (not to mention that you’re still young and likely in good health: two factors that go a long way in locking in a favorable rate). Here are a few of the many potential life changes that can take place in your thirties—all of which are great reasons to consider life insurance now, not later.

• You bought (or are saving to buy) a home: Purchasing a home is a huge achievement—and in many cases, comes with a huge mortgage. Life insurance is a way to guarantee that your financial obligations will be covered in the event of your passing. If you bought a home with a partner or spouse and/or if you have children, that life insurance policy will help ensure that your family can comfortably pay off the rest of the mortgage and continue living in the home.
• You’re having (or had) a child/children: Life insurance is maybe one of the greatest gifts you can give your child—it ensures that they’ll be protected and taken care of if the unthinkable occurs and you’re no longer around to care for them. A death benefit can help cover the costs of childcare, school tuition, and any other areas that can help your children maintain their quality of life.
• You have (or took on) significant debt: In addition to a mortgage, many people in their 30s have, or take on significant debt, either through student loans, credit cards, small business loans, or some other major life change that requires financial assistance. A life insurance policy allows you to pay off any outstanding debt left in the wake of your passing, protecting your family members from money troubles down the line.

If you’re in your 30s and aren’t going through any of the life events mentioned above (maybe you’re single with no dependents and have zero debt), you may have a bit more wiggle room on when you purchase a life insurance policy and can likely wait until you do take on bigger debts or responsibilities. However, the fact remains that because you’re young and likely healthy, now is the best time to lock in an affordable rate that fits into your life.

What kind of life insurance should you get in your 30s?

Deciding between term and permanent life insurance is one of the bigger decisions you’ll have to make in the process. Term policies last for a set number of years and are considered suitable for just about everyone. If you survive the term limits of your policy, the policy will expire with no payout. Permanent life insurance lasts a lifetime and includes a cash value component that you can actually borrow against or withdraw from while you’re alive. Permanent life insurance—because of the duration of the coverage and the cash value component—is usually more expensive than term.

If you’re in your 30s, term life insurance is usually your best bet. Term life insurance is affordable, straightforward, and can be tailored to provide coverage during the years you need it most. For example, if you’re a parent and your child will graduate from college in 18 years, you may want to consider a 20-year term policy. That way, you’ll know that no matter what happens, your dependents won’t be saddled with the costs of education in the event that they can no longer rely on your income. The death benefit of your term policy could be used to cover their education expenses, among other things.

The bottom line on life insurance in your 30s

At the end of the day, life insurance is a vital part of your financial legacy, and opting to invest in it early is a wise step toward protecting your family and easing your mind. While a strong majority of Americans (82%) value leaving behind a strong financial legacy, a significant number of people (38%) lack confidence they will do so. By getting life insurance in your 30s, you can take action now to solidify your own financial future and the financial future of your family.

Regardless of which milestones you’ve hit and which are yet to come, life insurance should absolutely be on your radar if you’re in your 30s. The benefits of purchasing life insurance early in life and locking in the best rate possible far outweigh the financial obligations. Ethos makes life insurance more straightforward and affordable than you think—take the first step by getting a quote today.