When is the Right Time to Buy Life Insurance?

Buying life insurance is something that many people tend to push off at which point it becomes costly or is too late. People are afraid to talk about mortality and often feel that they are just wasting their money on life insurance. Unfortunately, the truth is many people leave their families with a significant amount of expenses that they cannot cover, and life insurance is there to protect them. So when is the right time to buy life insurance?

Age 

When asked when the perfect time to buy life insurance is, the first thing most people think of is age. The truth with life insurance is simple, the older you get, the more likely you are to become ill and the higher your risk of mortality, so as you age your rates for life insurance will go up. So the answer is to buy life insurance as soon as possible.

While the ultimate time to buy life insurance in your adult life is your 20's, it is never too late.  It's also becoming increasingly popular for families to insure their minor children. This can very often be done without the need for a medical exam. It locks in low rates and protect your child's insurability for their lifetime. The same holds true for adults. There is no time like the present. Secure a policy as soon as possible before you age into the next age category.

Debt Level

Debt is an important factor to consider when buying life insurance. As we mature through the life cycle, it is common for many families to accrue debt. In my 20 years of planning, I have come to recognize some universal needs or goals that families need to protect.

The need to educate their children, the need to pay off or have the ability to pay off any outstanding mortgages, and a lifestyle number, which is the amount of money needed to maintain your standard of living in the absence of a primary provider. 

It is crucial to protect your loved ones and make sure you have a policy that will cover all of your debt so your family is not left with a cost they cannot afford while dealing with the loss of a loved one. 

Lifestyle

Let's discuss the "lifestyle number" a bit more in depth.

This means that if one of the spouses passes away unexpectedly, the family will be left with a need. Sometimes the loss of one spouse's income is too much to overcome, and many families end up having to downsize or lose their family home. A life insurance policy can help cover the income that the spouse used to bring in at least for several years so that the family has time to make adjustments to be able to accommodate the future lack of income.

When determining the value of your life insurance policy, it is important to make sure that it will cover your salary at least for a five-year period. If one spouse is a stay at home parent, you may want to consider a life insurance policy as well to be able to compensate for the childcare and other expenses you will need to cover in their absence. 

The fact is that the longer you wait to start your policy, the higher the rate of premium you will pay. But life insurance premiums are not as bad as you may think and are often very affordable. Just remember that a little money each month can give you the peace of mind that your family will be taken care in the event of a tragedy. 

_{This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.}