While everyone makes choices differently in terms of the future and caring for their families, it’s important to make informed decisions. When it comes to life insurance, there are several factors
to consider in determining the ideal age for you to get covered. In general, sooner is better, but you may have valid reasons for delaying. This guide can help you determine the best time for you to start thinking about coverage.
In Your 20s
Starting a life insurance policy while you’re young and healthy will benefit you in several ways. You’ll find that it’s easier to get coverage and that your premiums are lower since you probably don’t have any pre-existing medical conditions. Paying lower premiums earlier in life will also save you in the long run since starting a policy later in life will raise your premiums considerably. Your policy will also mature sooner, providing the opportunity for you to borrow against the policy or cash out in an emergency.
In Your 30s
By this point in your life, you will probably be married and may have a few children. This is typically when people begin to realize that they will need a plan for the future care of their families. Even if you create an estate plan, starting a life insurance policy will give your family a little extra financial protection. Although your premiums will be a little higher than they would be if you had started a policy in your 20s, the rates will still remain fixed for several years. This ensures you can continue paying towards the policy even though you might have more monthly expenses.
In Your 50s
It’s not a good idea to wait this long to start a life insurance policy, but late protection is better than not having any coverage. The reason this is inadvisable is that your health will begin to decline in your 50s, making it harder to obtain coverage. When you do get coverage, you’ll find that your premiums are considerably higher. Since you will probably be dealing with higher debts and rising medical care costs, any policy you start in your 50s may be difficult to maintain.
If you’re still unsure about the best time to start a life insurance policy, you can get more detailed insight from an insurance agent. In addition to helping you determine the best time to buy, they can explain the differences between term and whole coverage. Your agent can help you get the ideal coverage for your situation.