When do you consider buying life insurance? As a policyholder, life insurance would give financial security to you and your loved ones.
The importance of having a good life insurance is something that cannot be overemphasized. 80% of consumers state that buying life insurance is an important financial planning topic for their home. Having heard this, it is normal for you to think of the appropriate time to get a life insurance.
This article will be an amazing guide to you to help you figure out when to consider buying life insurance. So, let’s dive in.
Do you want to buy life insurance, but have been procrastinating? If yes, then you should know that there might be consequences if you linger for so long.
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However, knowing the best time to buy life insurance is a challenge. Most people only think about replacing lost income, final expenses, funeral costs and leaving money to their heirs before they can even consider buying life insurance.
We also realize that buying life insurance is a personal decision for everyone. Nevertheless, there are events and moments that are a great indication that its time to buy life insurance. We will talk about each of these important events to consider when buying life insurance below.
1)At your young age and when you are healthy
If you are wondering at what age would be the best for you to buy life insurance, then when you are young and healthy will be just fine. It will preferable if you consider buying your life insurance coverage when you are in your earlier twenties, 20, as you begin your profession.
Avoid the preconceived notion of buying life insurance only when you have people dependent on you. That notion is invalid because there are people that don’t have anyone dependent on them yet, they try to have a better plan for their future by buying life insurance coverage.
One of the reason of you buying life insurance at a young age is because in the premium is usually low and affordable. You stand at advantage buying life insurance coverage at a young age, when there are no foregoing conditions that could make it difficult for you to get covered in future.
So, the best time to buying life insurance is when you are young and healthy. At that young age, you can acquire a suitable cover with more value and protection in the future, when your loved ones will be dependent on you.
2)Consider buying life insurance after purchasing a home
Another amazing time you should consider buying life insurance is after you have purchased a home. Getting a term life insurance coverage could help you with funds to repay a mortgage.
In most cases, term life insurance coverage have a span of 20 to 30 years. There will be a pay out if the policyholder dies within this span period. The death benefit that would be paid, would be used to clear the mortgage payment for your home.
So, that your loved ones and family would live a happy and debt free life, of completing the mortgage payment of your home, when you are no more.
3)Just after your marriage
After achieving a significant accomplishment in life could be a major drive for you to consider buying life insurance. One of such accomplishments is marriage.
In this case, you are no longer alone. You now have a spouse that you might be making joint financial decisions and even life decisions together. This might just be the perfect time for you to buy life insurance. So, eventually, if one amongst you dies, the other loved one would not suffer financially.
Another reason you should consider to buy life insurance after marriage is because, you and your spouse might start planning to have kids.
So, if you and your spouse plan of having kids, then it will very meaningful if you purchase life insurance just after marriage. This will give your kids sufficient protection ahead of time.
4)Consider buying life insurance once you start having children
Assuming you never bought life insurance after you got married, then another wonderful time to purchase life insurance would be once you start having children. Bringing up kids costs a lot – feeding, clothing, education, and so on, can be expensive.
It will be beneficial if you buy life insurance once you start having children. So, that if anything happens to you tomorrow, your children can still be well taking care of.
Apart from you buying life insurance, it is also good you encourage the other parent of your children to buy life insurance too. This would place your kids at a good advantage. Because if either you or your spouse dies, and is a “stay at home” parent, the children might not have some services such as daycare, and many of which would have to be paid out-of-pocket. Therefore, when considering to buy life insurance, it is vital for you to also consider the fact if your spouse is a “stay at home” partner.
5)Once you commence a business with partners
At first sight, commencing a business might appear to be a weird reason to consider when planning to buy life insurance.
Although, it makes more sense when two or more people come together to start a business. Because, at the initial stage of the partnership, decisions would be made concerning what will happen to the business if one or more persons dies.
In most cases, it will be more meaningful if any of the surviving partner(s) buys the shares or interest of the deceased partner. By doing that, the family of the deceased partner would receive pay, while the other surviving partners continue running the affairs of business without any form of hitch from the deceased family members. This is a win-win situation for every partner.
Therefore, immediately you commence a business with partners, it is good you buy life insurance coverage and make your business partners the beneficiaries. So, that the business can keep growing stronger even when you are no more.
Disadvantages of waiting for so long to buy life insurance
If you are longing to know when to consider buying life insurance and you are still waiting, it is also good you also know the disadvantages of waiting for too long before purchasing life insurance. Here are some of the disadvantages:
1)Premiums can get expensive
When you want to buy life insurance, it is good to go for the best life insurance companies that gives a low cost monthly premiums. Although, cheaper premiums are mainly available when you are younger. Therefore, if you want to get an affordable life insurance, then delay no more and go now.
2)The chances of not getting a life insurance policy increases
As the day goes by and you grow old, the chances of you getting sick increases. There are some health challenges that might develop that would make your ability to get a policy more expensive or even impossible. Such health conditions can be so severe that the aim of getting life insurance coverage would be defeated and unnecessary. Therefore, the most appropriate time to get a life insurance policy is when you are strong and healthy.
3)Your loved ones left without support
If you have people that are dependent on you for their welfare, then it would be dangerous if you don’t have an insurance coverage.
Death can take anyone by surprise and if does happen to you, you loved ones would be left with any support. They might start struggling to sell your house or other valuable possessions to raise money for their survival.
So, as you keep delaying to get a life insurance policy, consider how your loved ones would survive if you are no more.