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Life Insurance for 30 to 40 Year Olds

In your thirties you’ve probably settled into your career and are starting to kick some real goals. You may be about to buy a house, or have already bought one. You might be starting a family. Your thirties are when you really begin to build a life, filled with family and responsibility. It’s the most important time of your life to think about Life Insurance, if you haven’t already.

Whether you have a partner and children or you’re single, by your thirties you’ve most likely accumulated a number of financial responsibilities. You’ll have more to protect should you fall ill, become injured, or die.

This is also an important stage of your life to take control of your finances and set up a strong plan for your future. And insurance is an integral part of a healthy lifelong financial plan.

Why buy Life Insurance?

There are a number of different types of insurance you’ll need to consider in your thirties, from home and contents insurance to business insurance. But, one of the most commonly overlooked insurance policies is Life Insurance.

Many people get a basic level of Life Insurance through their employer or super fund and pay little attention to the level of cover and the benefits they would receive – quite often the level of cover provided is not enough for your individual needs and will not support your family if there were ever an emergency. (To fully explore insurance through your super, click here).

There are a number of different types of insurance which fall under the Life Insurance bracket. You should give each one equal consideration:

  • Life Cover: This will provide a lump sum payout to your family or nominated beneficiaries in the event of your death.
  • TPD Insurance: Total and Permanent Disability insurance (TPD) will provide a lump sum payout to you if you are injured and become permanently disabled. This will help pay for medical costs and rehabilitation and can settle any debts you may have.
  • Trauma Insurance: Trauma insurance is also known as critical illness insurance. This type of insurance will pay out a lump sum if you’re diagnosed with a serious medical condition.
  • Income Protection Insurance: Income Protection will provide you with regular payments of up to 75% of your regular income if you’re injured or become ill and cannot work for a period of time.

Along with your house and car insurance, the above policies should be a part of your insurance portfolio to protect you and your family from serious financial hardship if you become ill, are injured or pass away.

Personal Insurance

Whether you’re simply a couple, or you’re starting to grow a family, it’s a good idea to consider a Couples or Family Insurance policy.

These policies condense two individual policies into one, tailored to meet your needs with potential discounts on the cards. A non-working member of the family may provide the equivalent of monetary value in their work looking after the kids or completing tasks in the home.

Get more information about personal insurance here.

Financial Benefits of Buying Life Insurance

Any financial advisor will tell you that Life Insurance is an important part of your long-term financial plan, since owning a Life Insurance policy provides a number of benefits – particularly when bought young.

In your thirties and forties, you’re probably healthy. You might not have acquired any medical conditions and are not yet at an age considered a higher risk by insurers. That means your premiums will be relatively low compared to an older person. This will translate into long-term savings, and depending on the type of premium you choose, your premiums will increase less throughout the rest of your policy.

Find out more about premium types here.

Importantly, Life Insurance builds cash value over time, and is included as part of your personal wealth and equity. You may be able to access this cash value in the event of a financial emergency. You are also able to borrow against your Life Insurance total, meaning that it will improve your likelihood of obtaining a loan.

Business Insurance

If you own your own business, there are different kinds of insurance you may need to consider to protect yourself and your business in the event of your own or an employee’s injury or illness.

Business Expenses Insurance covers the cost of running and maintaining your business if you become injured or ill and are unable to work.

For more information on business insurance, read here.

Talk to a Wealth Smart expert today!

If you want to talk to a finance expert about your insurance options, both for your family and your business, contact a Wealth Smart advisor today. We can talk you through your options, and help you find the best policies and the cheapest price for your needs.

Page last updated: January 16, 2015