Is Now a Good Time to Buy Life Insurance?
Life insurance is one of those considerations you know you should have, and you hope you never need. But if you’re one of the many people who has not bought life insurance yet, how do you know when the right time is? There are a couple of factors you can take into account.
Age
When purchasing a life insurance policy, age is the first factor taken into account when setting the price. As such, the best time to buy life insurance will technically be as a newborn, as the policies become more and more expensive as you age and the risk factors increase. If you’re asking when the best time is to buy life insurance is, it’s likely too late for you to take advantage of policies for infants or minors. But as a parent, you may consider buying whole life insurance policies for your children. Upon turning 18 years old, the policy can be transferred to the insured for either further funding or to be cashed in if any equity is held.
If you missed out on the childhood life insurance policies, there’s still an optimal time to buy a life insurance policy while under the age of 35. Between 18 and 35 years old are the least likely to buy a policy. The largest advantage is the cost, as it’s so reasonable because the relative risk is low at that young age.
Marital Status
The purpose of buying life insurance is to protect your household. While young people may not see the value of a life insurance plan while single, getting married significantly changes that equation. Getting their partner protected should the unspeakable happen suddenly becomes a priority. As such, post marriage could be an ideal time for people to think seriously about buying life insurance.
Children
Even more than with a spouse, the arrival of children into someone’s life increases the need for health insurance. Life insurance is there to cover the amount of income you bring into your family should you not be there anymore. Having your family depending on you and your ability to provide only hastens the need to buy life insurance. Once your first child is born, if you have not yet jumped on the life insurance bandwagon, this landmark would be a good time to do so.
No Good Reason to Wait
The main takeaway about health insurance is that you’ll never know when you need it. Delaying buying it inherently puts you or your family at risk should something happen. The best time to act may have been yesterday, but the next best time to buy life insurance is today. Not only does going about life without it put you and your family at unnecessary risk, but it also increases the cost. For example, a 20-year policy with a death benefit of $500,000 would cost a 35-year-old about $430 per year, compared with $1,300 per year for a healthy 50-year-old. When you eventually come around and recognize the need to buy life insurance, you won’t be impressed with the extra costs.
Want to find out more?
Schechner Lifson Corporation is an independent insurance agency that can offer your business life insurance for your employees or a personal life insurance plan for yourself. With experienced and caring agents, Schechner Lifson Corporation can make sure you get the right coverage at a price that may be more affordable than you think. Contact us today to see how we can make sense of the often overly complicated and confusing world of insurance, providing you with the best and most affordable coverage possible.