If you have children and a fairly sizeable annual income, shopping around for life insurance options sooner rather than later can save you quite a bit of dough. Undoubtedly, buying a multi-decade term life insurance policy in one’s late 30s can make more sense than waiting until one’s 40s or 50s. That said, it may not be the optimal move for everyone, especially if one has a pre-existing medical condition (like diabetes or pre-diabetes), which could drastically affect the premiums you’ll pay.

In this piece, we’ll have a closer look into a 38-year-old Redditor who took to the platform for a second opinion amid their search for the perfect term life insurance product to help protect his kids.

Key Points About This Article

• A 38-year-old pre-diabetic is shopping around for a life insurance policy with good coverage and a lengthy term.
• It’s pricier to buy a life insurance policy with a health condition, but it can still make sense.

Is $5,000 a year for life insurance too much for someone in their late 30s?

Undoubtedly, $5,000 per year for a $3-million 30-year policy can be quite a hefty commitment, even for those with a high six-figure income. Indeed, the costs of living have risen drastically in recent years. And though inflation has cooled, there’s no telling where it will head once interest rates fall further into the new year.

In any case, one should carefully consider how a life insurance plan fits into one’s monthly budget, especially with two young children considered.

In any case, $5,000 per year for a life insurance term in their 30s does seem relatively high. That said, it is to be expected for someone with pre-existing health conditions such as pre-diabetes. With a $250,000 annual income, however, the price can fit into the budget. However, the big question is whether the coverage is too excessive for the individual’s needs.

As always, one should consult the advice of a certified financial advisor, one who knows a great deal about life insurance products, before buying any term life insurance policy!

However, if I had to give my humble opinion, I’d encourage the individual to keep shopping around for better deals. After searching around a bit, reducing the term and coverage amount could save one a considerable sum.

Reducing term and coverage could make sense.

At the end of the day, a longer-term (let’s say 30 years) plan may give much greater peace of mind. That said, such peace of mind will come at a cost. And in the case of this 38-year-old with two kids, I’d say the cost may be a tad too high for my liking.

By reducing the coverage amount ($3 million for two children does seem a bit excessive, at least in my opinion), the individual may get a better value from their plan. Of course, it depends on the lifestyle their children will have as they move into adulthood.

Additionally, it may be worth exploring shorter-term life insurance policies. Personally, I think a 30-year plan is just a bit too long. Perhaps a 20-year term would make more sense, given the Redditor’s children are likely to be financially dependent by the time the term elapses.

Of course, having less coverage may not sit all too well with the Redditor. In such a case, it may make sense to maintain the coverage and reduce the term by 10 or even 15 years.

At the end of the day, there is no “right” answer for everyone in such a situation. If they’re keen on a lengthy term and a more generous amount of coverage, the $5,000 price tag may be worthwhile. And I’m not against signing up for such a policy if it fits the budget. In any case, shopping around for the best possible deal on a comparable term and coverage is a must, especially if one has doubts about whether they’re getting the best value.

A Quote in Minutes

Even if you’re in a similar financial position and unsure about the exact amount of coverage needed, it’s always wise to get a quote and explore your options.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. With affordable rates and customizable policies, life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to visit our website and learn how to get a quote in just a few minutes.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.