Life insurance can help provide your dependents with a financial safety net in the event of your death.
In exchange for regular payments made over time to an insurance company or through an employer, the people you designate as beneficiaries receive an agreed amount when you die through your life insurance policy.
There are two main types of life insurance available: term life insurance and permanent life insurance. The most common type of permanent insurance is called whole life insurance. Term life insurance provides coverage for a set period of years. Permanent, or covers your whole life (premiums may cost more).
Each form of life insurance will provide financial protection for you and your loved ones. So if you don’t have life insurance, or want to supplement what you currently have, it’s worth exploring your options. Get started with a price estimate today.
The type of insurance you buy will depend on your personal financial situation. But when is the best time to buy life insurance? In general, experts say the sooner the better – but it’s also worth considering your specific needs such as dependents and individual financial situation. Consider your entire financial picture and future needs.
As usual with personal financial decisions, there are pros and cons to consider. This is especially true when determining the time frame for purchasing life insurance.
Buying life insurance at a younger age means
- Monthly premiums are generally less expensive
- You have time to build more cash value in a whole life policy
- Expenses such as mortgage payments can be covered if you die suddenly
- A spouse, partner, child or business partner who depends on your income for day-to-day expenses will not be left in the lurch
- The payment can cover expenses and debts you have left behind
However, it’s never a bad idea to look into life insurance, even if you haven’t considered it before (or can’t afford it yet). You may still have dependents, bills and other expenses. Or, you may want to leave a legacy. There are numerous advantages to having a life insurance policy, regardless of the type you choose. Talk to an insurer today who can help guide you to the right choice.
Buying life insurance at an older age means
- You will pay more in monthly premiums
- You won’t have as much time to build cash value if you choose a whole life policy, and less time to cash out if you need to liquidate that policy sooner
- You may have fewer good policy choices
- You may be able to cover some outstanding debts
- You can still leave a portion of the benefit as a legacy
- The payment can still help your dependent or partner cover expenses
Some milestones can also be a:
- When you start your first job. Some employers offer policies as a benefit.
- When you get married. Your spouse will have funds to cover lost income.
- When you start a family. Your children, spouse or partner can count on your income for everyday expenses. Shopping for a life insurance policy now can help cover these expenses for generally lower monthly premiums.
- When you buy a house. If you have a mortgage, it may be a good idea to buy life insurance to help your beneficiaries keep the payments after your death.
Have additional questions about buying life insurance? Talk to a financial advisor to properly assess what’s right for you.