From Generation X to Generation Z: A Guide to Life Insurance For Every Age Range

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

The need for life insurance is a given. Always. But what does this mean? When and why? What's the right time or age to purchase life insurance, and what will it cover?

Thinking about life insurance is not fun - it's not an uplifting or encouraging topic. It may seem utterly unrelated to the young and healthy, and when considering it, thoughts can lead towards gloomy observations about what would happen if…..

But things happen. And at some point, earlier than later, there's a real need to be prepared. Disasters, illness, and accidents can cause financial hardships though these can be avoided with the proper planning at any age. The key is knowledge and education, knowing what to ask and who to turn to for coverage.

The following are life milestones for purchasing life insurance policies:

Life Insurance for 20s Age Range

Status: Great health, young, optimistic outlook

Responsibilities: College, first time living independently, first job, marriage, first investment, children

The most affordable age to buy life insurance is during the 20s. Most people don't need it at this age as they are healthy and young, but precisely this poses less risk to the insurer, which can offer the most affordable rates. 

At this age, one's health history is at its best without any future red flags, and there are usually no financial dependents to which funds need to be allocated. 

For beneficiaries of 20-something, the life insurance proceeds can cover mortgage or housing payments, debts like student loans, childcare expenses, and final expenses. 

Life Insurance for the 30s Age Range

Status: Good health, new responsibilities

Responsibilities: Family, mortgage, aging parents, independent businesses, education, children

For a wide audience range still healthy, statistically, during these years, there can already be financial responsibilities and dependents - spouse, children, and even aging parents. Their economic well-being relies on an external income that needs to be protected, and life insurance is one of the most straightforward methods. 

The recommended coverage at this age can be term life insurance for a fixed amount of time, 10, 20, or 30 years. Purchasing it at a young age can help lock in an inexpensive rate for the entire coverage duration.  

For those covered by life insurance in their 30s, proceeds can help cover a mortgage a spouse is left with, income for a partner that stays home with the children, childcare and education expenses, as well as medical bills and final expenses. 

Life Insurance for the 40s Age Range

Status: Overall good health, responsibilities, and long term plans

Responsibilities: Mortgage, debt, non-working partner, medical bills, dependents

Today, Americans live longer, but the recent unexpected circumstance has shifted the estimated age-adjusted death rate; This stretch of years is still a great time to readjust or acquire life insurance policies before rates start to increase. It's essential to find insurance providers that can offer affordable life insurance coverage aligning with each person's needs and abilities. 

Policies may have a wide range of options, and it's important to carefully review the policy details, apply candidly, and make a note of pricing to save money. 

The policy's proceeds can cover the following for beneficiaries:

• The remainder of a mortgage
• Cover a salary gap due to increased earnings
• Protect a spouse dependent on a sole provider's income
• Childcare present and future expenses
• Financial cushion for medical and final expenses

Life Insurance for the 50s Age Range

Status: Health issues may occur, financial responsibilities

Responsibilities: College expenses, investments, aging parents, outstanding debt

Purchasing life insurance is crucial here but will cost more though still a price that is feasible for most. During these years, the majority may already have financial dependents, more family members who may need more funds for support, assets required for shelter, or a steady income. The overall sentiment is to protect these. 

Health and well-being are critical factors to obtaining the coveted coverage at a reasonable rate. However, insurance companies may be more hesitant and careful about providing low-cost policies within this age range.  

Like in previous years, life insurance coverage supports beneficiaries with the policy's proceeds. In addition to what the proceeds have been able to cover in the past, these may also cover medical bills, which may be more prevalent now. 

The advantage of acquiring life insurance is apparent at any age, during some age ranges a bit less than others, at a time when the future is far and long. However, in today's climate and actual current world events, it's clear the need for protection is high. 

Often the choice between investing in life insurance and other expenses may be a bit murky, especially when funds are limited. Fortunately, life insurance companies are now more sensitive than ever to their audience's needs and abilities. As a result, there are ample flexible coverage options based on lifestyle, health, and financial limitations.

Where in the past, the process of life insurance acquisition deterred people due to a lengthy bureaucratic process, today companies, like Sproutt.com, are making it easier than ever to secure life insurance at any age. 

The digital revolution and emphasis on user experience and customer service now allow this process to be at every person's fingertips - from online inquiries, short online health questionnaires, personal preferences and choices, various policy choices, application, and quick approval from the insurers—all online, many without the need for medical examinations, and within minutes. 

Life insurance at any age is feasible, accessible, and provides peace of mind. Acknowledging the present day circumstances, having life insurance coverage can provide some stability in an unstable world.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.