You know life insurance is a good idea – but when is the right time to buy life insurance. You may be on the verge of closing on your first home. Maybe you’ve started planning for retirement. Perhaps you’re young & single. At what stage in your life do you check off the life insurance box? Should you wait till you have children? Till you’ve reached a certain age?
There is no hard and fast rule about when to purchase your life insurance policy. But there are benefits at every stage. When deciding on the best time that fits your lifestyle, remember it’s less about hitting a certain age or milestone and more about tailoring your coverage to your needs. So when is the right time to buy life insurance?
Single & Successful
Life insurance exists to protect and assist your loved ones. And that doesn’t necessarily mean a partner and children. When a young & single adult dies there are other family members left behind to cover the costs; parents and siblings will be responsible for sorting out your debts (student loans, credit cards) and funeral costs. Taking out a policy for a young adult, teenager or even a child could greatly reduce the financial risk to your family.
Growing a Family
Many people take out a policy when they get married, or more so when they have their first child. As your income becomes shared and your liabilities grow, it makes sense to ensure your dependants will be taken care of if you die. When deciding on the terms of your policy consider how long your child/children will depend on you financially. With the addition of more children to your growing family it is best to review and perhaps change the terms of your policy.
For many young families it is your mortgage and property taxes that soak up quite a large portion of your income. Just as you wouldn’t drive a new car without insurance, your home (a much heavier financial liability than a car) and mortgage should be covered. In the event of your death your spouse and children might be forced to sell if faced with such a large financial burden.
You may have already paid off your mortgage and sent your kids to college, or you may be planning for that retirement. While you don’t have the same financial responsibilities as a 35 year old, you still have assets, loved ones and a fixed income during retirement. There maybe fewer chances to save. Protect the life you built and the people you love; make sure the costs of your passing or debt don’t rest on their shoulders.
Whether you’re a young professional, building a family, planning for retirement or a different phase in life – it’s always the right time to take out a life insurance policy to protect your loved ones. For more information on purchasing a life insurance policy or to get a quote.