You may ask yourself, why do I need life insurance? If you are young, healthy and financially secure, you may think that you do not need life insurance. If you have ever used that logic as a reason to not enroll in a life insurance policy, then you may leave your family unprepared should you pass. The reality is that, just because all of these factors may be true for you now, these are not reasons to delay in setting up a life insurance policy. In fact, they are all reasons to have Life Insurance!
Often, when you are younger, it is often the most opportune time to purchase life insurance. Think of it this way, it’s not because you may be close to passing, but rather because you are most likely not going to pass in the near future that the timing could be ideal. Term life insurance companies perceive you as a low risk to insure, as you still have plenty of years ahead of you. You may even be able to outlive your “term” policy . This often results in lower premiums for you. Younger individuals in good health with a combination of low risk factors–non smokers, infrequent drinkers, hazard-averse people–are more likely to receive lower premiums.
Premiums rise as we age not only because we are getting older, but because generally, the state of our health decreases as age increases. While you may remain in excellent to fair health through your 40’s and even 50’s, the number of health issues and deaths increases once you enter you 60’s and above. According to the Center for Disease Control, over 1.7 million people over the age of 65 die in America each year. The top three causes, according to the CDC, are heart problems, cancer and chronic lower respiratory disease.
These are all factors that life insurance companies take into consideration when determining a rate for you. There are several other factors that play into your premiums but age and health conditions are two of the more important factors to be considered. No matter what age or level of health you are in, it is always best to compare your options when purchasing Term Life Insurance. Using an independent term life insurance agency, like SelectQuote, will help take the hassle out of the comparison process and get you the policy that best fits your needs and budget.