When Should You Buy Life Insurance?

If you’re thinking about buying life insurance, you’re probably wondering how much coverage you need and, more importantly, when you need to start buying or saving for a life insurance policy.

Here are the main points to note while deciding on the right time to buy insurance:

The sooner you purchase life insurance, the better, as it becomes more expensive with each passing year.

• When you have people who depend on you financially or if you have debt—it's crucial to have life insurance.

• Permanent life insurance has a cash value component. Holding the policy for longer lets that cash value grow over time.

Younger is Better

Life insurance is cheaper when you’re younger because the older you get, the more health issues you’ll face. The higher the risk you have of getting sick, the higher your premiums will be. The problem is, as a young adult, you probably have student loans, car leases, maybe even mortgages to pay off. While it’s wise to pay off your current debt, don’t put off buying life insurance. Not only is it cheaper, it also helps your loved ones pay off your debt in case something happens to you.

Best Age to Own Term Insurance

If you know you’re about to have financial dependents, you should invest in term life insurance. Why? Because you get to choose the period of time within which you think you’ll want coverage. This means lower total premiums (since you aren’t paying for it all your life), and a term that you can select based on when you anticipate your loved ones will rely on your income.

1. For parents, the term chosen often lasts until their children are grown.

2. Couples who own property together may want to be covered until their mortgage is paid off. If both partners are breadwinners income, then each should be covered.

3. A parent who doesn't earn income may also want to consider coverage, as their unpaid labor (childcare, chores, etc.) might need to be replaced by paid services (like daycare, housekeeping, etc.) in the event of their death.

4. Even as a young adult without any dependents, you could have credit card debt or private (non-federal) student loans. Since credit card balances and private loans require payment upon the death of the holder, term life insurance can help pay off these amounts.

Best Age to Buy Whole Life Insurance

A permanent/whole life insurance plan is typically more expensive than term life insurance as it contains a cash value. This means with every premium payment you make, you can accumulate considerable cash value over time. What’s the benefit of a whole life insurance plan with a cash value? You can dip into this amount as you would with a savings account to make a down payment for a first home purchase or to supplement retirement income. However, the money needs time to grow, which is why an early start is best.

Regardless of which type of policy is right for your circumstances, you have to thoroughly research the companies you're considering working with to get the best life insurance policy possible. iLifeInsurance.net does the heavy lifting for you by picking out the best life insurance plans for you to compare. And the best part? No insurance salesmen pressuring you into buying coverage that doesn’t match your needs, since iLifeInsurance is an online tool. But if you do need that personal touch, there are insurance experts on standby ready to answer your questions and help you get the right insurance at a price that fits within your budget.