When should you get life insurance? A breakdown by age

Life insurance is more than a financial contract—it's a way to protect your loved ones and plan for the future. Whether you're in your 20s or 60s, understanding when and why to buy coverage can help you make smarter decisions about your financial security. However, life insurance can be beneficial at all sorts of ages and stages of life.

Several factors go into choosing the right time to get life insurance. If you're young and healthy, it may feel like you don't need it. But if you have dependents or financial obligations, life insurance can give you the security of knowing your loved ones will have financial protection if something happens to you.

The right time to get life insurance is when you have financial responsibilities to other people. When loved ones or business partners depend on your livelihood, life insurance can give you a way to keep providing for them after you're gone.

However, a couple of other factors influence the best time for you to get life insurance, such as health—how insurable you are and how much coverage you need versus can afford.

Being insurable means an insurance company is willing to offer you coverage. When you're younger, you're generally healthier. Insurers may consider you to be less of a risk and offer you lower premiums.

You might think that life insurance will be more affordable later in life, when you make more money. But with each passing year, you're statistically more likely to develop health problems. So as you age, the cost of life insurance also is likely to be higher.

Depending on your life circumstances at different points, the benefits of life insurance for you will shift. The options you're considering will vary, including what coverage, if any, you qualify for and the premiums you can afford. Deciding when to buy life insurance is a strategic and individual decision. Let's take a look at how age can influence when you should get coverage.

Getting life insurance in your 20s can be advantageous. Even if you don't know whether providing for a spouse or family is in your future, it can make sense to lock in low rates while you may be highly insurable.

Life insurance can be smart to have if you have anyone who may be responsible for your finances—a parent who cosigned a loan that would not be forgiven upon your death or a sibling who would help pay for your funeral but can't afford it. It's a way to financially protect any loved one after you're gone.

If you have a family history of illness, it's especially important to consider getting life insurance early. While no one can predict the future, having coverage in place can give you comfort that you're prepared. Depending on what kind of medical history you have, you may be classified as a high-risk life insurance applicant. Still, it's wise to apply and find out if this is the case for your specific situation. Also, be persistent because even if one company won't insure you, another might.

Your 30s can be an excellent time to get life insurance because you'll be able to fine-tune your coverage to your current responsibilities. Healthy 30-somethings also still are likely to qualify for lower premiums.

Married couples around this age often will take the step of getting life insurance to have some security for their journey together. A common reason to get life insurance is to have a financial cushion for your spouse if something happens to you. The death benefit can cover costs like these while they adjust to a new lifestyle:

• Your income
• Your housing costs
• Support your cause
• Other outstanding debts
• Final expenses

For parents, one of the most loving things you can do is ensure your children are financially protected. Life insurance is worth considering for both working and stay-at-home parents. If either of you were to pass away, your budget could be strained—either by the loss of an income or a sudden need to pay for child care and other services. Even if your children's basic needs are otherwise taken care of, a life insurance benefit can give them a boost by helping them pay for college, fund a wedding or buy a home.

You also may want to consider purchasing life insurance for your children to establish future insurability on their lives.

Premiums in your 40s likely will be higher than what you could get in your 30s, but they still can be affordable if you're healthy. The cost also may feel easier to pay if you have a higher, more stable income at this point.

People at this age are often raising children and paying a mortgage or rent, making life insurance just as valuable to have as in your 30s.

Life insurance also can be a way to gain financial ground as you work during these peak years toward retirement. Depending on the type of contract you choose, you may be able to use life insurance to build wealth and accumulate cash value on a tax-deferred basis. It can be a supplement to your retirement fund or simply help diversify your long-term financial plan.

If you're a vital part of a business at this life stage, life insurance can help safeguard your interests. You may want to consider coverage that protects your small business, or your company may want to get key person life insurance on you. These strategies support business continuity while also looking out for your loved ones.

Your 50s can be an ideal time to get or add coverage for obligations you didn't anticipate. You may have housing costs or loans where you don't want the burden to fall entirely on your spouse, family or others.

But also, your and your loved ones' financial needs are likely changing as you all get older. You may not have very young children anymore, but your grown children still may be depending on you as they get started with their adult lives. They may be relying on your financial support while they establish their jobs and pay student loans or need help funding a graduate degree.

Many midlife adults also begin taking on responsibility for their aging parents. If this is the case, you'll likely want to consider how their financial needs would be met if they didn't have you.

This life stage is also when people start seriously considering estate planning. You may already have a plan for covering the end-of-life expenses your loved ones could face, but if not, getting life insurance in your 50s can make you feel prepared. It also may be a time when you start thinking about how using life insurance for charity can make a lasting impact on your community.

At this age, obtaining new coverage could mean that life insurance premiums are the most expensive you've seen yet, but it can help if you've managed any health conditions well. It also will make a difference if you have a clear purpose in mind so that the coverage amount you want can lead you to the right life insurance contract.

By your 60s, you may have paid off your mortgage and already saved elsewhere for retirement. But you still may be thinking about how to ease any financial obligations you might leave behind or how to pass along what you've worked for to loved ones or charity.

Life insurance offers distinct benefits that cash or investments alone may not. For beneficiaries, it provides a death benefit they can get without having to go through probate. It can be used for any purpose, and it's usually income tax-free. This can provide your beneficiaries with money to settle your final bills and taxes owed so they can avoid having to pay out of their pockets. You also could use it to equalize inheritances if, for example, one of your loved ones will inherit the family home or business while another will not.

Some people use a life insurance contract at this age to set up support for a cause they care about. With a charitable giving strategy, it may be possible to leave a legacy gift that's larger than your premiums paid and also maximize your tax advantages.

You may worry about the risk of making a late-stage investment. But you can choose conservative options, such as a cash value that grows at a fixed interest rate rather than being subject to market performance. Premiums at this life stage may be substantially higher, but you may need far less coverage for what you're planning.

There are two main categories of life insurance: permanent and term life insurance.

Permanent life insurance can provide lifetime coverage, as long as you continue paying premiums and the contract stays in good standing. This type offers the potential for cash value to build tax-deferred over time—which can be a smart consideration for a long-term financial strategy. Some people choose permanent life insurance so they have the option to borrow cash value if a need arises, although it can have consequences, such as your beneficiaries getting a decreased death benefit if the loan isn't repaid.

➤ Permanent insurance can be worth it if you have financial priorities that won't go away, like caring for a dependent or establishing a legacy.

Term life insurance provides coverage for a fixed period, typically between 10 and 30 years. Premiums for term life insurance are usually less expensive than permanent because they're protecting you for a limited span of time with limited features. Neither cash value nor loans are an option, and when the term expires, you'll no longer have a death benefit for your loved ones.

➤ Term insurance can be a strategic option if you want coverage just for a specific time, such as the length of a mortgage or while your kids are very young.

The first step in selecting life insurance is to figure out how much coverage you need. From there, you can compare how different life insurance options stack up with your needs for features and cost.

Thrivent has several types you can explore:

• Term life insurance
• Blended term life insurance: Combining term and whole life coverage
• Whole life insurance
• Universal life insurance
• Variable universal life insurance

If you're thinking about getting life insurance, it's important to talk to a financial advisor to see if it's right for you. They can help you figure out how much coverage you need and what type of policy would be best for your situation.

As far as when to get life insurance, sooner is usually better. If someone relies on you or would be impacted financially by your death, it's a good idea to explore the idea of getting life insurance.