Saturday 16th of January 2021

Make the Smart Choice: When to Buy Life Insurance

Confronting the prospect of our own mortality is difficult. No one likes to entertain the thought that life can’t go on forever; indeed, it can and unfortunately sometimes does even end prematurely. If you have people you care about who depend on you, going without coverage is not a risk you can afford to take. The best time to buy a plan, especially if you have dependents, is now. The earlier you buy your policy, the cheaper your premiums will be. In what follows, we’ll give you additional advice on when to buy coverage.

About Employer-Sponsored Coverage

If your employer doesn’t offer subsidized coverage as part of your benefits package, you need to take the initiative and purchase a policy on your own. Even if you do have the option of employer-sponsored life insurance coverage, you might consider shopping around to find a better deal, especially if you are young and healthy. Similarly, you may have opted into the policy offered by your employer, but the standard level of coverage might not be enough to fulfill your needs. For those with large amounts of debt, many dependents, or large future expenses (college tuition, for example), you may have to supplement your employer-subsidized coverage.

Good Times to Buy

Right now is a better time than ever to purchase life insurance because it has gotten cheaper in recent years. Thus, if you don’t have coverage, you can find an affordable policy fairly easily. Below, we’ve included a brief synopsis of when you might want to consider purchasing a policy.

  • You’re young and healthy. You may think that you don’t need to buy life insurance because you’re young and have no dependents. However, chances are, you probably will one day soon, and life insurance is cheaper the younger you are. You also should buy while you’re still healthy because you might develop illnesses down the road that could render you uninsurable.
  • You just got married. If you died, would your spouse or partner be able to pay off the mortgage, handle the credit card debt, and retire comfortably some day? Without your assistance, the answer is probably no. Buying a life insurance policy when you tie the knot is a good idea to make sure your spouse/partner will be taken care of.
  • You’re starting a family. Once you have children, life insurance is an absolute must-have. At the very least, you should purchase a policy that is enough to replace your annual income until the child reaches a self-sustaining age. Remember to allow for big expenses like college in your policy amount.
  • You have older parents. As Baby Boomers get older, more and more Americans are dealing with the prospect or the reality of caring for their elderly parents. Anyone can be named as a beneficiary in a life insurance policy, so you could include your parents in your policy in order to provide for their financial and medical care if you die.