Blog – Vernfonk Insurance

You’re in your 30s. It’s a challenging time. You might be growing your career while still paying off school loans. There could be a wedding, a new home purchase, or child-rearing responsibilities going on now or in your near future. It’s an expensive decade! 

Is it any time to be thinking about shopping for life insurance? 

Yes, because there are multiple long-term (and even shorter-term) advantages to investing in a low-cost life insurance policy now, perhaps before your eventual beneficiaries are even a twinkle in your eye. 

Here are what we think of as some of the leading reasons for shopping for low-cost life insurance now rather than waiting until you’re older and maybe more settled. 

1. Life Insurance is Cheaper Now in OR

Let’s get right to the punchline. Start with this post’s prime payoff. It’s cheaper now. 

If you invest in a permanent life insurance policy, your insurance company will eventually issue a payout. No doubt about it. It’s virtually the definition of the policy. As long as you continue to pay your premiums, the insurer guarantees a face-value death benefit when you die.  

The only way the insurance company suffers is if the policyholder dies too soon after obtaining the policy. When that happens, the premiums paid by the policyholder don’t come close to offsetting the payout. 

That’s why life insurance underwriters love clients who buy policies when they’re young. It’s likelier that you’re healthier and will live longer if you’re in your 30s, compared to those who first invest in life insurance decades later. 

Makes sense, right? It’s just arithmetic. 

That expectation of a hopefully long and relatively healthy life translates to much lower premiums to clients in their 30s than they would have to pay when they’re 20 or 30 years older — as long as you’re a non-smoker and have no serious ailments at the moment you acquire the policy. 

And remember, your rate won’t be reconfigured if you get your policy at age 30 and develop a life-threatening illness at 35. The last word on this subject is that it will literally never be cheaper to obtain a life insurance policy than now, when you’re in your 30s and highly sought by insurance companies. 

2. Your Low-Cost life Insurance Gets Even More Affordable Over Time

When you’re in your 30s, you’re still relatively fresh into your career. You probably have many more raises, promotions, annual bonuses, and fruitful job changes in your future. But at the same time, the cost of your life insurance policy will stay the same. 

That means your policy grows effectively cheaper every year. Think of how your parents chuckle about what they paid for a car, their home, or living expenses 30 years ago. It seems ridiculously inexpensive now, simply because of inflation and the fact that your folks probably make a lot more money now than they did decades ago. 

The premiums you pay for your low-cost life insurance policy will look the same way a few years down the line. That’s not necessarily true of those who first invest when they’re older and getting closer to a fixed-income retirement. 

3. Your Policy Might Accumulate Cash Value

There are two main types of life insurance policies. Term life insurance only covers a specified period of time. Maybe you get a term life policy to cover the 20 years in which you’ll be raising your children. If nothing happens to you after the term ends, your policy is no longer in force. That’s fine with you though because you no longer need the policy. The kids are on their own. Your policy has done its job. (And let’s be honest, you’re kind of glad your policy never issued a death benefit.) 

Whole permanent life insurance is different. The policy covers you to the end of your life. At that time, there’s a guaranteed payout to your beneficiaries, perhaps your spouse or children. In addition to offering reassurance that your loved ones will be cared for if you should die unexpectedly, this kind of insurance policy can also accumulate cash value over time. 

If cash value is a component of your policy, you might be able to borrow on it over time. And if you begin paying on that policy while you’re in your 30s, it might acquire an impressive amount of cash value by the time you might wish to borrow against it, decades later. 

Ask your insurance agent about the cash value potential in the policy you’re thinking about and details on how you might (or should) take advantage. 

4. This Might Be Your Smartest “Forced” Investment Ever

You probably know what happens if you quit paying your life insurance premiums. Your policy will lapse and the death benefit won’t be paid to your beneficiaries at the end of your life. That’s a powerful incentive for keeping the policy — and the investment — in force. 

For many people, their parents’ life insurance policy is their largest source of inheritance. That death benefit can also protect the financial stability of your surviving spouse or other loved ones. In other words, you’ll get a lot of value out of what will be a rather modest investment over time if you obtain your low-cost life insurance policy while you’re still in your 30s. 

Young Oregon Residents, Call Us to Discuss Your Low-Cost Life Insurance Options

Want to learn more about the abundant benefits of acquiring low-cost life insurance while you’re still in your 30s? Simply pick up the phone and dial (800) 455-8276. You can also visit an Oregon life insurance agent at your nearby Vern Fonk Insurance location. Or get a quick quote online.