Affordable Life Insurance Protection for Your Family

When Should You Buy Life Insurance?

When Should You Buy Life Insurance?

Having the right life insurance coverage is critical to providing adequate financial protection for your loved ones. 

But many people wonder when is the right time to buy a life insurance policy. 

This guide will provide you with the insight into the best time to purchase your life insurance policy.

First, if you think you have a need for life insurance, you probably should consider purchasing a policy.

Common Reasons to Buy Life Insurance Plans


  • When Young
  • Getting Married
  • Buying a Home
  • Promotion at Work
  • Expecting a Child
  • Starting a Business
  • Death of a Parent
  • Becoming a Legal Guardian


When Should You Consider Buying Life Insurance?


If you're asking yourself "When should I get life insurance?" you've come to the right place to find out. Waiting to buy an insurance policy can have financial consequences for both the policyholder and their loved ones. 


While this is an individual decision to make, here are some common examples of when buying life insurance makes sense.


When Young and Healthy


At What Age Should You Get Life Insurance? 


For many people, the answer is to buy insurance when they're as young as possible. In fact, it often makes sense for people to buy life insurance in their early 20's upon starting their careers.


Because, the price of life insurance is much cheaper when you are young and healthy. And, you can lock-in a low rate that will remain the same for years to come.


It's a common misconception that it's a good idea to buy life insurance only after someone is dependent on the policyholder for income. 


Even people without anyone depending on them may want to plan ahead and get covered. Otherwise, if you wait too long, your health may change, and you may find you are uninsurable when you need life insurance the most, or you may find out costs more than you can afford to pay for the protection you actually need, when you really need it the most.


Buying your life insurance coverage while you’re young can result in much lower annual premiums. It also makes sense to buy a policy before pre-existing conditions develop that could make it hard to get insured of you wait too long.


So, for those asking "When is life insurance necessary?" it's probably best not to wait if you actually have a need for protection


Coverage purchased early on tends to cost a several dollars a month, but vary based on the amount of life insurance you need. It can provide invaluable protection later on when you need it most, once loved ones come to depend on the your financial support.


After Getting Married


Milestones throughout your life can provide you with the answer to the question of When to Get Life Insurance. 


For example, it may be a good idea to get a life insurance policy after you get married.


Most people who get married make joint financial decisions based on multiple incomes. 


Or, if one spouse isn't working, that spouse provides crucial services to the other spouse that might otherwise have to be paid for, should the non-income earning spouse pass away. 


Buying life insurance could ensure that the death of one spouse doesn't cause financial devastation to the surviving spouse.


Marriage is also a good answer to the question of when to get life insurance because newly married couples often consider starting a family. 


If the couple has plans for children -- even far into the future -- it can make sense to get insured for life insurance as soon as possible. 


That way, protection will already be in place once your children are born.


After Having Children


Couples who don't purchase life insurance plans early or upon marriage should reconsider when to get life insurance after having children. 


Raising and educating a child in today’s world can be extremely expensive. Many parents wish to have insurance coverage to ensure their child will be provided, in case something happens to one or both parents.


It makes sense for both parents to have life insurance in most cases. 


This is true even if one parent is a stay-at-home spouse.


While the death of a stay-at-home parent wouldn't result in a loss of income, it would result in the loss of valuable services that might otherwise need to be paid for, like childcare, laundry, cooking, cleaning and running errands. 

Consider this when deciding when to get life insurance, and if both parents need coverage.


After Purchasing a Home


You may want to buy life insurance after buying a new home.


A term life insurance policy could provide funds to pay off a mortgage loan


Term life policies are in effect for a set period of time, such as 20 or 30 years. They pay out a death benefit if the insured person dies during the coverage term. 


The death benefit from your life insurance policy would help you leave a paid-off home to a surviving spouse, or other family members.


After Starting a Business with Partners


Starting a business might be a surprising reason to get life insurance. 


When two or more partners start a business together, they must make decisions about what happens to the business should one or more of the business partners die.


Often, it makes sense for surviving partners to buy out the interest of the deceased person. That way, the family of the deceased business partner can get paid and the surviving partners can continue to run the company without their interference, or involvement in the running of the business. 


Buying a life insurance policy and making the partners the beneficiary of the policy provides the funds to make that happen. 


When to Buy Term Life Insurance


Does the Answer to the Question "When Should You Get Life Insurance?" Change If Buying Term Life Insurance Coverage? 


In most cases, No. Here are some times when it's a good idea to buy a term life policy:


  • When You are Young
  • After You Get Marriage
  • After You Start Having Children
  • After Purchasing a New Home
  • After Starting a New Business


Many of the best term insurance carriers have upper age limits on when someone can get insured. 


That's another reason to buy protection as soon as possible. While someone in their Sixties may be able to buy term life coverage, doing so may often be very expensive at that age.


It's also important to consider how long the insurance policy will last. 


Term policies only payout a Death Benefit if the Insured Person dies during the Policy Term. 


For example, a 20-year term life policy purchased at age 35 would last until age 55. Unless the policyholder died before reaching age 55, the policy wouldn't pay out any death benefits.


So, while buying coverage at a young age, to Lock-In affordable rates makes a lot of sense, you should think about how long you expect to need your life insurance policy to last, in order to accomplish your financial goals. 


Many consumers want their life insurance coverage to last until their child or children are grown and on their own. 


Or, you may want coverage to last until you reach retirement age, and your income would no longer be needed to support anyone else. 


Take the desired end date of reaching your financial goals, into account, when deciding when to buy life insurance.


When to Buy Permanent Life Insurance


Permanent (whole) life insurance remains in effect for life as long as the insured person (or owner of the policy) pays the premiums. 


It's much more expensive than term life. So while buying a policy at a young age can help save on premiums, it can also mean years of paying for expensive coverage that isn't really necessary at that point in time.


It's best to buy permanent insurance once the insured person decides it's needed for lifetime protection; for example, if you have a disabled child who will always need care, then lifetime insurance would guarantee funds to provide for your disabled child for his or her future needs.


For those who don't need permanent coverage, term insurance may be a better option to choose.


The Cost of Waiting to Buy Your Life Insurance Policy


For those considering the question of when to get life insurance, think about the downsides of waiting. 


There are many reasons why it doesn't make sense to delay purchasing a a life insurance policy, especially if you know you need coverage.


More Costly Premiums


The best insurance carriers offer affordable pricing on life insurance policies. 


That's especially true when buying a policy at a young age because waiting can cause costs to go way up, especially if you develop a health condition.


Those who want to Lock-In protection at the lowest rate possible shouldn't delay in getting insured. 


Why You Shouldn’t Delay Getting Life Insurance

Increased Chance of Being Turned Down for a Policy


You should also consider the risks of getting sick or developing a terminal health condition. 


Certain health issues can make it expensive or impossible to buy life insurance. It's best to buy coverage before developing any serious health problems.


If you wait too long and then develop an illness, it may no longer be possible for you to qualify to purchase the life insurance you really need. 


This serious risk needs to be taken into account when deciding when to get your life insurance policy.


Leaving Loved Ones Unprotected


Anyone who has people depending on their income or services is taking a huge risk if they don't have any  life insurance coverage. 


When deciding when to get life insurance, consider what could happen to your loved ones if you are without coverage.


If a person dies and their loved ones must sell a home or their kids can't afford college, that's a tragic outcome. It could have been avoided with the right life insurance at the right time. 


Those wondering "When should you get life insurance?" will want to make sure their families are protected now, and in the future.


How Can I Buy Life Insurance?


The question "When should you get life insurance?" is an important one. But it's also essential to know how to buy life insurance.


Here's How to Buy Your Life Insurance Policy


  1. Determine How Much Coverage You Need to Buy. Think about the income that will need to be replaced and other costs loved ones could incur upon your death.
  2. Shop Around for Life Insurance. Get premium quotes from several life insurance providers. Prices and terms vary from one policy to another. Find the pricing that fits your budget and the coverage that fits your needs.
  3. Submit an Application for Coverage. Applicants must detail their health history. Many, but not all, life insurers require a medical examination of the applicant for coverage. It's important to be honest when applying for a policy. The insurer pays for the physical check-up.
  4. Read the Fine Print in Your Life Insurance Policy. Make sure the coverage provides the death benefit amount you need, and learn about policy exclusions and limitations. Once approved, the policy will go into effect and loved ones should be protected. This can take some time (up to 3-4 weeks), so plan for that when deciding when to get insured for life insurance.


Life Insurance Quotes


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