Like most types of insurance, life insurance is something you should consider buying before you think you may need it. But when is the best time to buy Term Life Insurance?
In your twenties, you are most likely in excellent health, and not concerned with death and dying seems like it’s a long way away. You are most likely still in college and don’t have allot of extra income. If you have finished college and have started your first job, your salary is most likely modest. While you may think Term Life Insurance is either unnecessary or too expensive, this may be the best time to purchase. Your rates will be at their lowest because you are a very low risk for insurance companies.
You have probably been out of college for a couple of years at this point. You may be married, buying a house or starting a family. These are milestones in which Term Life Insurance could be beneficial. You may be able to use it as collateral against credit card debt or even your student loans. Best of all, because you are young and in good health, rates will still be low for you, making it an opportune time to purchase.
As you move into your 40s, you may now have several responsibilities to take care of. You may be getting close to sending your children to college, or have a large mortgage that needs to be paid off. You can use a Term Life Insurance policy to use as protection for your family should something happen to you. However, as you are getting older, your body may be starting to show its age. Your rates will start to increase at a much faster rate once you hit this decade of your life.
When you are in your 50s, you may be approaching retirement. You may be an “empty nester”, or close to it at that point. Health issues may be more common now, so if you are looking to purchase an insurance policy at this age, be prepared to pay a higher premium. If you already have a policy, you may want to consider adjusting your policy as you may need less coverage based on accrued savings over the years.
Rates in your 60’s are going to be much higher than they would have been had you bought life insurance when you were younger and healthier. You may not need to purchase a policy with long(er) coverage duration as you would have when you were in your 20’s.
So, we believe that there is really no reason to delay getting your life insurance policy to a time later in life. Purchasing a policy when you are young can save you money and allow you to protect the ones you love after you are gone. You can compare policies through a term life insurance agency, like SelectQuote that will help you find the best coverage and prices!