More than half of Americans will develop a chronic illness at some point in their life according to the Centers for Disease Control and Prevention.
Life insurance should be a key part of your plans as it provides security for your loved ones in the event of your death. It is an important safety net to have, especially if you have people in your life that you help take care of financially like young children, or a spouse who is a homemaker.
However, it is harder to have life insurance after you have been diagnosed with a chronic illness. That’s why life insurance is a wealth-building tool that you should have as early as possible.
My Journey With Life Insurance
I started carrying life insurance outside of my place of work in my late 20s. So, I’m paying a small amount for a significant policy. However, in late 2022, I wanted to increase my premium since it was still inexpensive for me.
Even though my life insurance policy should be enough, term life insurance is still very affordable for a healthy woman or man in their 30s, so I wanted to increase the policy.
While I knew that the premium rises yearly as you get older, life was busy and I didn’t get around to doing it, which is something I truly regret.
However, in late 2023, like 39.5% of Americans, I developed a form of cancer. I was diagnosed with Stage 3 Triple Negative Breast Cancer, a very aggressive form of Breast Cancer at age 38. I have been receiving costly health treatments since.
Chronic Illnesses And Life Insurance
According to Policy Genius, a cancer survivor under 45 years old may be able to get life insurance coverage through their workplace group life insurance policy, which will expire if they leave their job.
People older than 45 qualify for guaranteed issue life insurance, a form of whole life insurance, which is very expensive, and more beneficial to people who already have significant wealth and want to preserve it, as explained in a 2023 YouTube video.
For people like me who never had a serious or chronic illness until recently, suddenly everything changes. “Now I’m considered “a high-risk person” by life insurance companies, even though my cancer is in remission. When I completely beat cancer, I will still be considered high-risk by the insurance company, like any cancer survivor. So, I will face a significant premium.
I have had solid life insurance for a decade and I am so thankful for that. If you don’t already have a policy, I hope that you purchase one after reading this story.
The Yearly Cost Of Not Having Life Insurance
Term-life insurance outside of your job makes sense because of its affordability, which gives you room to invest the difference that you would pay for a whole life policy. In addition, the fact that the policy doesn’t expire when you switch jobs makes it a great option.
Life insurance increases by 5 to 8% each year in your forties and by 9% to 12 % if you’re in your fifties according to Investopedia,
The Cost of Life Insurance
In 2024, for a $500,000 20-year term life insurance policy, here are the average yearly premiums for healthy, nonsmoking women and men, respectively (according to NerdWallet):
- Age 20: $177 and $216
- Age 30: $186 and $221
- Age 40: $282 and $334
- Age 50: $641 and $817
It is in your best interest to get a life insurance policy as early as possible. If you didn’t sign up in your 20s or 30s to get the best rates, remember it is best to sign up now than later as the premiums keep increasing.
Life insurance is an inexpensive tool to help your family build wealth. It provides security to your loved ones. It allows them to function without the person who passed away, and without worrying about being able to stay in the same house, or the same school district, to pay for childcare, or to participate in the usual activities. Life insurance is the last gift you leave your loved ones to ensure that they have a good life.