Getting a comprehensive life insurance policy is one of the most important decisions you make to ensuring your loved ones are protected after you’re gone. However, not many people know the best time to take this step.
Apart from ensuring that your family is covered when they need it most, you also need to consider premiums and how they change based on your age, health, and situation. Let’s jump right into the factors you should consider.
Life insurance agents will typically advise their younger clients to start saving for coverage when they’re young and healthy. Life insurance is a good investment at any age, but it is especially wise for people in their twenties just starting out in their careers.
Most people wait until they have financial responsibilities or dependents before purchasing life insurance, but this is a huge mistake. It’s good to prepare for the future and secure your health insurance even if you don’t have anyone dependent on you. One reason for this is that when you acquire life insurance at a young age, you can qualify for cheaper rates overall.
It’s also smart to be protected at a young age, in case you develop a health problem that makes getting insurance more challenging later on. Moreover, early insurance purchases will typically mean lower monthly premiums. This security will be priceless later when there are loved ones who rely on the policyholder’s income.
Married couples normally pool their resources and make financial decisions together. Or, if one partner is staying at home, they might be offering essential services like educating the kids, cooking, cleaning—services that the other partner would otherwise have to hire someone for. Purchasing life insurance will protect a family financially in case one partner dies.
If the couple hopes to start a family someday, even if it’s a long way off, it’s financially smart to enroll in coverage right away. This will ensure that there’s a safety net in place way before the child is born.
Once you start a family, you will care about providing for your loved ones and seeing that their needs are met, including paying for their education, health etc. Would the earnings of your partner be sufficient to replace your salary in case you pass away? Your partner may have to take over your responsibilities as a parent and housekeeper, which could impact their career. Life insurance would protect your family from all these potential financial devastations.
Being a homeowner provides a great sense of security, but leaving behind a mortgage payment might be a hardship on a grieving spouse if you die or lose your job. Having a term life insurance policy in place might be useful in paying off your mortgage and other bills if something were to happen to you.
Purchasing life insurance may seem like an unusual choice when starting a business. It is important for the founding partners of a firm to decide what will happen to the company in the event of the death of one or more of them.
Surviving business partners will consider purchasing the late partner’s share of the business at some point. It’s also important to ensure that the deceased’s family gets compensated and the business continues to operate with the least possible disruption. A good way to get the money for this is to get a life insurance policy and name the partners as the beneficiaries.
Seniors over 60 need insurance, too. Perhaps you’re taking care of a child, grandchildren, or other loved ones with disabilities. If you were to pass away, your spouse might live for another decade or more. Are your dependents financially secure? Will the money you’ve saved be enough for your spouse to maintain their current standard of living for the remainder of their life? If you answered no or are unsure, getting a life insurance policy may be the safety cushion your dependents need to support themselves after your untimely demise.
We suggest talking to a reliable life insurance agent if you still have questions about when you should purchase life insurance coverage. Get in touch with our independent life insurance agents at Franklin Life and Annuity, and we’ll help you figure out if you should get life insurance or burial expense insurance in Houston, TX. We will evaluate your needs and guide you on the type of insurance protection that will best serve you and if it’s a good idea to purchase it now or later.