What You Need to Know about Life Insurance in Your 30s

By: Jen Herrmann

As you enter your 30s, life insurance should be on your radar. While it’s easy to get wrapped up in the day-to-day of work, family life, socializing with friends, and finding that precious me-time, it’s essential to look out for the future too.

Having a solid life insurance policy in place can give you peace of mind, knowing that your loved ones are taken care of should anything happen to you.

But what type of policy should you get? How much coverage do you need? And how often should you review your policy? Let’s explore all this and more.

Early in my career, I always had life insurance through my corporate employer. I started my own company the year I had my first child and quickly realized I needed to get my own life insurance. It can be overwhelming at first, but here are some tips that helped me approach the process.

Determine Your Ultimate Needs

Everyone should have life insurance by the time they enter their 30s. We never know what tomorrow may bring. So it’s important to take out a policy as soon as possible—even if you don’t have children or other dependents yet.

A life insurance policy can be used to cover funeral costs, medical bills, and other expenses that may arise upon your death. It can also provide financial protection for those who rely on your income and support.

Personally, I spoke to our insurance provider to understand my options, and then I reviewed everything with my husband. It was important to me to pick a policy that he felt comfortable with, since it ultimately is to take care of him and our children.

It took me about 4-6 weeks to understand what plan was right for our family, and then I started the process to get accepted for a plan, starting with a physical and the paperwork.
 

Choose The Right Type Of Policy
 

When I bought my first life insurance policy, I opted for term life insurance. It was the policy I felt fit my current life stage the best.

At the time, we didn’t own a home but were looking to purchase one. We had one child but did not know if we wanted two. With so many unknowns, a realistic term policy that could be supplemented later made the most sense.

For younger adults, term life insurance is usually the most affordable and popular type of life insurance available. Term policies provide coverage for a set amount of time (10-, 20-, or 30-year terms are the most common) at a fixed rate, set when the policy is purchased.

This means that if anything happens to you during that period, your beneficiaries will receive a death benefit (the amount and terms outlined in the policy). The best part about term policies is that they are renewable when the term ends—so even if health conditions change over time or your lifestyle changes, you can still renew without any problems or additional medical exams (subject to approval).

Get Enough Coverage To Protect Your Loved Ones

When selecting a life insurance policy, it’s important to make sure it provides enough coverage for those closest to you—your spouse, children, parents, etc.—so they can continue living their normal lives without worrying about money issues following your passing.

The exact amount you need depends on things like expenses, ongoing debts, and mortgages. But typically speaking, around 10x your annual income would be sufficient for most people in their 30s with young families.

However, one thing I wish I would have done at the time was to think about how my income and our potential home size would change over the next 3-5 years and buy insurance for that level. While it could be seen as “overbuying,” it allows you to grow into the policy.

If needed, speak with an expert who can help tailor a plan specifically designed for your needs. This way, you can be assured that everything has been considered properly regarding how much coverage is appropriate for your individual situation.
 

Revisit Tour Plan From Time To Time

With every big life change, revisit your life insurance plan to ensure it still meets your family needs. As we have moved and grown our family, we’ve revisited our plans.

In general, having enough coverage, so that loved ones don’t experience financial hardship upon our passing is essential at every age, but especially during our 30s when we start building our families and taking on more responsibility than ever before.

It’s never too soon or too late to get started. With proper planning, you can have peace of mind knowing your loved ones will always be taken care of.

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