When is the Right Time to Purchase Life Insurance?
If you are like many people, you have been trapped into believing that you cannot afford life insurance. In fact, a 2015 Insurance Barometer Study found that 80% of all consumers misjudge the actual price of term life insurance, overestimating its cost greatly. Millennials even overestimated the cost by an astounding 213%.
In reality, a healthy 30-year-old can usually obtain a $250,000 term life insurance policy for less than $30 a month. Consequently, within the industry, the age of 35 is a good benchmark to go by, meaning you should consider purchasing a policy before that age. In other words, now, not later is the time to buy a life insurance policy. Here are a few more reasons why you might consider such a purchase:
Reasons to Buy Life Insurance Sooner, Rather Than Later
Here are some reasons life insurance serves as vital coverage for you and your family in the case of your passing and why you should consider this purchase sooner rather than later:
- The Ability to Retain Coverage: There are some benefits to retaining your own policy outside a job’s policy. For example, if you are young, it’s not very likely you will remain at your current place of employment for the duration of your life. Therefore, a personal line to cover you is likely the best idea. After all, even if your coverage is good through a work policy, you might get laid off or decide to quit.
- Securing a Low Cost: Your health and age are the two major driving factors when it comes to the overall cost of your life insurance policy. Obviously, in most cases, your health will be better the younger you are. Therefore, it’s wise to invest in life insurance well before you think you will need it. Purchase your policy while you are young and in pristine health for the best rates possible.
- Protection for Co-Signers: Another benefit of buying life insurance now rather than later is protecting any co-signers you might have on loans. If you were to die before a loan is paid off, anyone on that loan (serving as a co-signer) will now be responsible for repaying the remaining balance. They will become financially responsible for that debt. Life insurance prevents them from having to shoulder the burden of the entire loan once you are gone.
- Replaces Income: If you are married and have children or are even considering children in the future, life insurance is that much more important. When you pass away, not only are you gone but so is your income. If you are the primary breadwinner for your family, income replacement becomes that much more important.
- Covers Debts: If you currently owe money on various debts, your life insurance policy will be used to pay these outstanding debts. If you do not have such protection, your family could be forced to sell assets to pay off debts in order to keep certain items. Don’t make them liquidate assets to pay what you owe.
- Pay For Final Expenses: Funeral arrangements are extremely expensive, ranging between $7,000 and $12,000. Life insurance will cover the costs of your funeral arrangements, taking this burden off of your family.
Bottom Line: Now is the Time to Buy Life Insurance
If you find yourself later in your career, no longer in your early working years, don’t panic. Now is as good of a time to start as any when it comes to protecting those you love with a life insurance policy. Now, no matter when now is, is the best time for you to purchase a policy. Our team would love to help you find the best life insurance policy for you and your family to make sure you are protected in any given circumstance.