So you’re contemplating life insurance, and wondering the cost. We’ll get the obvious part out of the way first: there’s no less expensive day to purchase life insurance than today. You’ve read that all over our posts, as well as any searches you’ve done on Google, Bing or elsewhere. Ok, we understand you were googling this most likely.
Now, knowing you are a savvy insurance shopper, and having gotten that piece of housekeeping out of the way, there are still a few items we need to tackle before we get to how much life insurance costs for a 30-year old.
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As we mentioned above, the price of life insurance is greatly reduced in your early years. Because of your youth and health, you can lock into lower rates without health afflictions affecting them. Additionally, there is less likely a chance of your relatives being diagnosed with a health condition which may affect your insurance rates. Intrigued? You can read more about what affects the price of life insurance here.
You may have some coverage through your work, but it less and less likely you’ll have that same coverage throughout your career or that it covers as much as you think – we have more to say about that here.
Lastly, while there are many insurance products to choose from, term life insurance gives you the most flexibility in your thirties. Term life insurance is one of the simplest life insurance products, where you pay a fixed monthly premium for a term of guaranteed coverage. Most plans have the flexibility to convert term coverage into permanent life plans down the line, if you find yourself needing longer coverage as your life changes.
Before finding out how much life insurance costs, you need to ask: how much life insurance should I buy? How much life insurance you need at 30 years old depends entirely on your own personal situation – it’s even possible that you need no life insurance at this point in your life. If you are backpacking through Europe and paying for pints by washing dishes at your hostel, we agree, now might not be the time.
However, there are some easy indicators of whether you need life insurance:
- You think you are with the person you’ll be spending the rest of your life with
- You have children or are planning on having children soon
- You are home shopping, have a mortgage, or plan on buying a home in the next 5 to 10 years
- You have other forms of debt such as student debt, credit card debt
- You are the main breadwinner for your family, be it your children, partner, or parents
It’s not inconceivable that a young Canadian in their thirties, with a new mortgage, young children, and a partner who also earns an income would need at least $500,000 in coverage to cover their remaining house payments and child-rearing expenses and cost of living for the next 20 years. You may very well need even more than that.
Our life insurance needs calculator can shed more light on your specific insurance requirements.
With that in mind, let’s take a look at what a coverage amount of $500,000, $250,000, and $100,000 for 20 year term life insurance costs for a 30-year old.
As we have explained here, your insurance premium depends on various factors including your age, gender, smoking status, your lifestyle, and your overall health. All else equal – we’ve crunched the numbers from 16 different Canadian insurance companies to give you the average cost of life insurance on a 20-year term, divided by gender and smoking status.
For a male non-smoker, $500,000 worth of coverage starts at just over $30 at age thirty and rises modestly from there. Smoking almost doubles your life insurance rates in your early years, and then almost triples it by the end of your 30s.
Life Insurance Premiums – Male, Non Smoker, 20-Year Term
Life Insurance Premiums – Male, Smoker, 20-Year Term
*Representative values, based on regular health
The story is similar for women, though initial rates are lower at this age, with smoking continuing to have a meaningful impact on your costs.
Life Insurance Premiums – Female, Non-Smoker, 20-Year Term
Life Insurance Premiums – Female, Smoker, 20-Year Term
*Representative values, based on regular health
Again, it must be mentioned that these are estimated prices based on representative data and will still vary depending on factors like one’s health and medical exam results, smoking status, geography, and more. You may also feel you need a higher death benefit or a 30 year term depending on your financial situation and life insurance coverage needs.
Only you can determine how much coverage you need, but this gives a representative view of what the average 30-year old might pay for such coverage.
You now have an idea of what term life insurance might cost given these parameters – but insurance is not one size fits all. Determine your needs and get customized term life insurance quotes in minutes with PolicyAdvisor’s life insurance calculator.
Still not sure how much you need? We’re always happy to chat.
Give us a call at 1-888-601-9980 or book some time with our licensed experts.