There are many questions surrounding insurance.
But “When should I get life insurance?” is an easy one to answer.
Life insurance can be a complex and confusing subject. For many, the topic can even be overwhelming or downright depressing. But ignoring life insurance isn’t going to make it unnecessary.
The more you understand about life insurance, the more confident you can be in your decisions about it.
Many of our clients have asked us, “When should I get life insurance?” Our answer is almost always, “As soon as possible!” In our experience, the many benefits of life insurance make it a crucial part of any financial plan.
You Can Purchase Life Insurance at Any Age
Many people think that you have to buy life insurance at an early age. However, life insurance policies are available (and encouraged) for everyone—regardless of how many birthdays they’ve had.
Someone in their 50s and 60s can still qualify for life insurance without any issues. The difference is the cost of that policy.
Fortunately, an independent insurance agent can collect multiple quotes from a variety of carriers to help you pick the one that’s right for you. For instance, it might make more sense to purchase a term policy at age 60 rather than a universal one.
What Is The Difference Between Term and Universal Life Insurance?
Term and universal life insurance are both great policies, but there’s no one solution that’s right for every family.
The most affordable option is a term life insurance policy. The coverage is simple to comprehend, and it is a reasonable way to carry insurance.
Your term life premiums are calculated when you purchase the policy and remain the same for the entirety of the term. The best part, you get to choose how long your coverage lasts (typically 10, 20, or 30 years).
However, once the policy ends, so does your coverage.
While you can always buy another term life insurance policy, your monthly premium payments will be calculated according to your current age and health. As a result, you should expect to pay more.
That’s why many look to universal life insurance or whole life policies. These plans last for the rest of your life or until you reach a specified advanced age.
Universal life insurance plans have much higher monthly premiums than term policies. But if you have the financial strength to make greater monthly payments, universal life insurance is a wise investment.
Some insurance companies will even offer a sort of “hybrid” approach, where the policy is structured as term insurance, but if you can pay extra money into the account, it will act as a universal life insurance plan.
As always, it’s best to discuss your specific situation with your independent insurance agent to find out the benefits of each option and which one is best for you.
When Should I Get Life Insurance?
As mentioned earlier, almost everyone should have life insurance coverage as soon as possible. But many of us wait for certain life events to happen before we explore obtaining a policy.
These are the more common life events that drive us to either get a policy or speak with our insurance agents about ensuring we are still getting the proper level of protection.
Getting Married
“Until death do us part” is a huge commitment, but the truth is you want to ensure that your spouse and loved ones are taken care of after your death. Having the proper amount of life insurance will ensure that your spouse has adequate financial assistance in the event of your death.
Buying A House
You want to ensure that your loved ones are taken care of after you’re gone, and knowing they will have a house over their head can be a huge relief. A life insurance policy can help ensure your family isn’t forced to sell your home and move once your income is gone.
Having Kids
Starting a family is one of the biggest motivators for people to begin thinking about their legacy and what would happen after their passing.
The costs of funerals, childcare, debt repayment, regular bills, student loan, and educational funds for the children are all covered by life insurance. Even if you already had a life insurance policy, having a child likely means you will need to talk about getting a larger plan.
When a parent passes away, having enough coverage enables the family to concentrate on what matters throughout the grieving process. (And yes, stay-at-home parents should have life insurance, too!)
Change In Career
As a benefit to employees, many firms provide life insurance. But is it enough to protect your family should you pass away? And do the death benefits go away when you leave or lose your job? Before you leave your job (and kiss that benefits package goodbye), make sure you have adequate protection.
Don’t Wait To Buy Life Insurance!
As mentioned earlier, your life insurance premiums are set when you first purchase your policy. If this occurs when you are young, healthy, and have your whole life ahead of you, your premiums will likely be relatively low.
However, if you wait to purchase coverage until after you’ve had a bunch of birthdays and developed a pre-existing condition (and inflation has kicked in), you’ll be paying a lot more. As we age, we have a greater chance of acquiring underlying health issues, leading to higher mortality and higher insurance premiums.
This isn’t to say that you shouldn’t buy life insurance after a certain age. Far from it! To paraphrase the old saying, “The best time to buy life insurance was yesterday. The second best time is today.”
Our point is that there is no good reason to drag your feet on buying a life insurance policy. If you’re considering this form of protection for your loved ones (and you should!), it’s worth doing as soon as possible.
Let Harry Levine Insurance Find the Right Life Insurance Policy for You
Life sometimes comes with unpleasant shocks, and if one of those unpleasant discoveries is the passing of the family breadwinner, everyone in the home finds it challenging to cope with the grim truth.
Every adult should get life insurance. There is no justification for not having it, since it is among the most affordable insurance available and provides many advantages.
Contact us here at Harry Levine Insurance to discuss the best plan for you and your family and get a free life insurance quote.
