Most people know that when they buy a car they also have to purchase car insurance. If you purchase a house, that’s when you buy homeowner’s insurance. The same is true for motorcycles, boats, and renter’s insurance. However, many people wonder when they should purchase life insurance.
Life insurance provides financial peace of mind in the face of an uncertain future. While it may not seem obvious to people outside of the insurance industry, there are several milestones in your life at which you should purchase life insurance.
- In Your Mid-20s – By the time most people reach this age they have a career, have moved into their own place, and many of them have found the person they want to spend the rest of their life with. Life insurance at this time in your life should cover anyone relying on you financially whether that is a spouse, children, a roommate with whom you have signed a lease, or simply to cover your final expenses.
- As Soon As You’re Married – Seriously, go from your wedding reception to your life insurance broker. Don’t wait until you are 30 to buy life insurance if you get married before then. Once you are married you have a financial dependent that is relying on you to supply at least half of the income for your life together. If you die unexpectedly you leave them at risk for financial hardship, making it next to impossible for them to pay a mortgage or any other debts that you have incurred together on their own.
- While You Are In Your Best Health – Your life insurance premiums are based on a lot of different factors. Age, weight, height, and your overall physical health are all assessed by a medical exam prior to a life insurance company issuing you a policy. Many of these factors will change as you age which can adversely affect the premiums of any life insurance policy. You will never be younger than you are right now. If you currently have a health concern, talk to your doctor about it to get it under control, and then apply for health insurance. If you wait too long, you may run the risk of not being eligible for coverage at all.
In short, the best time to buy life insurance is right now. Unless you are living a life of financial freedom with no dependents, debts, and enough money in the bank to cover your final expenses, life insurance is something that you should purchase. How much life insurance you should carry and which type will be right for your circumstances are also things that should be considered prior to making a purchase.