At thirty years old, you might be looking to set up your life insurance for the first time. At this age, many are newly married or soon-to-married. You might be expecting your first child and bought your first home. Thirty is usually the age when people begin to settle down and get serious about careers and income and you want to protect your family and your income if something happens to you. The great news is that life insurance at thirty years old is fairly inexpensive, assuming that you are in pretty good health, and most people are at this age. Before you can find out how much life insurance will cost you at this age, you need to figure out how much life insurance you need and which type of life insurance is best for you.

How much life insurance is adequate?

There are several different ways to determine how much life insurance you need. The most simple and straightforward way to calculate it is the “rule of thumb method.” All you have to do is take 6 to 10 times your annual income. This is the simplest way, but not the most accurate because everyone’s situation is different. You should also take into account your mortgage and other debt, how many children you have, the ages of your children, and any earnings that your spouse has. Once you figure out how much you need, you’ll need to decide which type of insurance is right for you.

Whole life or term life?

Term life insurance is cheaper than whole life so you can get much more insurance coverage. The main difference is that term life lasts for a certain period of time, or term, and whole life is permanent coverage that will last for your lifetime (as long as you pay your premiums). Also, whole life insurance builds cash value because a portion of your premiums are set aside and invested by the carrier.

Here’s an example of the difference in cost for $1,000,000 30 year term policy and a $1,000,000 whole life policy at 30 years old. These sample premiums are based on a preferred health rating for a non-smoking individual.

Male / Term Life: $890.00 per year
Male / Whole Life: $3323.00 per year

Female / Term Life: $730.00 per year
Female / Whole Life: $2780.00 per year

As you can see, whole life insurance costs a lot more so you really have to decide whether or not that’s the type of policy you need. Rates vary greatly from one carrier to another so be sure to speak with an experienced agent to make sure you get the lowest rate for you based on your age, height, weight, health history, driving history, and occupation. Get  a free quote today to compare multiple rates from top carriers.