When should you buy life insurance? It is a question many people have asked themselves at various stages of life. During our youth, a premature death seems nearly impossible. By the time you have a family, it is barely considered a possibility, and if so, an unrealistic one. It isn’t until middle-age that many people begin to view their mortality in a practical way; though waiting to purchase insurance during the second half of life could lead to unfortunate consequences. So when exactly is the right time to purchase life insurance? Continue reading to find out more about your life insurance needs at various stages of life.
Life Insurance When You Are Young
Life insurance is often the last thing on the mind of a young person – especially one who is healthy and has no dependents. However, if you plan to get married and have children at some point, buying insurance now could set yourself up for a more secure financial future. Not only do these years present a unique opportunity to secure exceptionally low premiums due to low risk, but buying insurance young can also help protect loved ones and co-signers from outstanding student loan debt if you pass away unexpectedly. Some people even use whole life or universal life insurance to compel themselves to save money, as these types of policies accumulate cash value over time.
Life Insurance When You Have a Family
Most people who purchase life insurance do so by the time they get married or start having children. Term life insurance is especially popular at this phase of life, as a high death benefit can be purchased at low rates and guaranteed for 10, 20 or even 30 years. This usually provides enough time to support a dependent until a pre-determined point in life, whether it is college graduation for a child or retirement age for a spouse. Term life insurance is designed to pay off debts, replace income and fund future expenses for surviving beneficiaries. Most people in their 30s and 40s will qualify for coverage though some could face higher rates if they purchase insurance after the development of certain health issues or age-related risk factors.
Life Insurance for Later in Life
For people over age 50, life insurance may begin to seem less necessary. After all, this is the time children start to become financially independent and families experience lower household expenses. However, a couple in their 50s still has one to two decades of earning potential and may still need to catch up on retirement savings or paying off major debts. For some, this is a good time to invest in a whole-life insurance policy, since insurance becomes harder to procure with age. According to Kiplinger, a whole-life policy, which is guaranteed for life, will continue to provide benefits through retirement, and can also accumulate cash value, adding diversification to a financial portfolio.
The Bottom Line
The bottom line is that there is no better time than the present to purchase life insurance coverage. Your health can change in an instant, as can your insurability. It is important to speak with a knowledgeable life insurance agent who can help you evaluate your coverage needs and identify any potential gaps in your family’s future financial security. Whether you are currently uninsured or need to review your existing policy, contact Vanyo Insurance Group to speak with one of our friendly agents. Our team can help you determine the ideal time for you to purchase insurance and help you determine the amount of coverage you might need.