When is the best time to buy life insurance?
Dying too soon or living too long are the main reasons people buy life insurance. Life insurance is perhaps one of the essential things you will need to include in your financial portfolio to keep your assets safe and to free your next of kin from any financial hardship your death or disability may leave behind. you in case you die soon.
The next question then is, when is the best time to buy life insurance?
Financial advisers, investment gurus and personal finance advocates will always tell you that the best time to get insurance is yesterday – the younger you are, the lower the insurance rates.
This is just one way of emphasizing that life insurance should be secured by an individual as soon as he is financially able to obtain one. Contrary to popular belief, the type of life insurance you buy doesn’t have to be expensive or a permanent plan. This is where term life insurance comes in.
Term life insurance is an insurance policy that provides individual insured coverage fixed over a certain period of time or a particular “term” of years. This type of insurance is less expensive than permanent life insurance, so more affordable for someone who wants a basic plan with the simplest type of coverage. Like permanent life insurance plans, term life insurance rate by age can be easily obtained from insurers; thus, you can freely search for a font that suits your needs and budget.
If, however, you’re still on the fence when it comes to getting life insurance, think about the next stages in your life where you need to make sure you’re covered in the event of premature death or disability.
- You are about to start a family
Starting a family means that you will base all decisions and activities on what is best for your unit. If you haven’t found a good reason to insure yourself, this is one of the important steps you should consider. Getting married or having children means that any financial burden you still have will automatically be passed on to your next of kin if you meet your untimely death.
Save your family from any potential financial hardship. To start a family is to become a responsible member of a unit, that is, to have the foresight to manage potential risks. Being insured means the debt stops once you’re gone. Planning ahead means allowing your beneficiaries to live as comfortably as possible in the event of their death.
- You are about to own
As mentioned above, having insurance protects your loved ones against any type of debt, including your mortgage.
Buying your own home is an exciting time for everyone. Having your own property creates a sense of security until something happens and the paycheck that pays for the mortgage is gone. Your local government can develop programs to help homeowners finance themr mortgage payments during disastrous events, but this may not fully cover the financial struggle you may leave behind. That’s another great reason to insure – to make sure your family stays debt-free should anything happen to you.
Protect your nest egg from the start. One could dismiss the thought too far into the future, but there’s nothing you can do about it when unfortunate events lead to disabilities or death that can exhaust your retirement nest egg before you can even enjoy it. If you predecease your spouse or if one of your parents or siblings falls ill or becomes disabled, caring for them will indeed affect your savings and living expenses. By insuring yourself early on, you will ensure that anyone you leave behind can maintain a decent and comfortable lifestyle.
But what about single people who choose not to start a family? It may not seem logical to think about insuring yourself, but you have to consider the financial responsibilities that still fall on you. College loans, car loans or credit card debt should not be passed on to your parents or aging siblings in the event of your death.
The end goal
It is better to insure yourself yesterday, as the experts usually say. The younger you are, the less it costs to get one, regardless of the type of insurance you choose to purchase. the cost oI wait for a milestone or for that perfect time to get one can actually cost you more since most illnesses occur as a person ages. Remember that insurance is not just for you, but for the people who depend on you.