It’s not a big exaggeration to say that life insurance is one of the last things that people like to think about. When we grow older and our mortality becomes more apparent with every new ache and pain life insurance becomes something that weighs heavier on our minds.
Or when we start a family of our own, and have children that rely upon us for their well-being; this is another time when people often think about life insurance should they pass away and leave their loved ones wanting.
Tip: Make sure to read up on the Top 10 life insurance companies before you apply for coverage.
When to get life insurance?
If you want to know when to get life insurance at the lowest price — It’s Right Now! That may sound like a pushy sales tactic, but it’s true. For the vast majority of life insurance shoppers, age is one of the biggest factors with regards to price. You’ll never be as young as you are today, so if you don’t procrastinate for very long.
Earlier the Better
Technically speaking, the best age to buy life insurance is immediately after you’re born! That seems crazy, but since life insurance is age banded, it gets more expensive as each year goes by.
The truth of the matter is that there is no perfect time to buy life insurance for the sole reason that we cannot tell what the future might have in store. One of the biggest things that life insurance gives you is peace of mind that your loved ones and estate can be settled and taken care of should you pass on.
Of course if money was no object then you wouldn’t be reading articles on cheap term life insurance. With that in mind, there are better times to invest in life insurance.
The Price of Waiting
Let’s look at a quick example. John Doe is a 40 year old man shopping for $100,000 in coverage. He’s going to pay approximately $182 per year for a 30-year term life policy. That equals $5,460 over 30 years. If John waits until he’s 50, he’ll pay around $427 per year for the same policy.
Over 30 years, the 50-year old John is paying $12,810. By waiting 10 years, John paid an additional $7,350 over the life of the policy.
Should I Buy Life Insurance?
Should I buy? This should probably be the first question you ask instead of “When Do You Need To Buy Life Insurance?” There are a variety of reasons why you should buy a life insurance policy.
why do i need life insurance?
Great question. We put a together a quick way to help you decide if you even need a life insurance policy. First, let’s go through these 3 Reasons For Life Insurance to see if you should move on to the next step.
What is the purpose of the policy? Why do you feel you need to buy life insurance? Is it for income replacement? Pay off a mortgage? Build wealth? Provide financial protection for your family?
3. Your Age
Your age will also play a role in if you need life insurance. Coverage goals can change dramatically depending on how old you are.
When is life insurance necessary? (Top 10 Reasons to get coverage)
Now let’s see the stages in life where life insurance is most needed. We analyzed the Top 10 situations and stages when people should get life insurance. The purpose of this list is to help you figure out if purchasing life insurance now is appropriate (or maybe down the road is better).
We’ve organized this list as a timeline from the youngest stages to the oldest.
1. Life Insurance for Kids
Usually it isn’t recommended to purchase life insurance for children. The main reason is that kids don’t have dependents and therefore don’t need life insurance. However, paying for a funeral is one reason to think about coverage. Another is having a financial buffer in order to take some time off from work to grieve. You may actually think about adding a child rider to your policy as a much cheaper way to address these issues.
2. Single Young Adults
As with all ages, funeral costs and final expenses are a main reason for life insurance. Life insurance would cover the their funeral costs and relieve this financial burden from a parent or loved one. When you’re young, life insurance is very inexpensive. You may think about buying a life insurance policy when you’re a young adult and avoid purchasing a more expensive policy down the road. so that by the time you need it, you do not have to pay more due to your age. As you get older, life insurance becomes more expensive and you gamble on the possibility of not qualifying due to a health condition you didn’t have when you were younger.
3. Working Couples (No Children)
For working couples who do not have any children, they need to figure out if life insurance is really needed or not. Do you and your partner both bring in a substantial income? If so then life insurance may not be necessary if you can live comfortably without that their 2nd income. However, perhaps you’ve discussed with your partner that someone in the relationship would suffer significantly if one were to die. In this situation, an inexpensive term life policy may be an easy solution.
4. You have a Mortgage or Other Debts
Are you planning on purchasing a home? If so, you’re going to be asked if you’d like to buy some mortgage insurance. Purchasing a term life insurance policy would provide protection and cover the debt of your mortgage. Speaking of debts, life insurance can help pay off your debts so your family or estate isn’t burdened with them. Life insurance can really help with debts that have build up — things like medical bills, loans, and possible estate taxes.
5. New Families
Life insurance really should be bought if you are thinking of beginning a new family. The rates for your life insurance policy will be much cheaper now compared to when you get older. If you’re the main breadwinner, you need to calculate how much your partner or spouse would be missing over the life of your working years. If you’re a stay at home parent, you need to calculate everything you do that would now have to be paid for (child care, after school care, housekeeping, etc.)
6. Older Families
Almost anyone that has a family has someone that depends on them. If you do, you need a life insurance policy. This does not only include the spouse or partner working outside the home also whoever is working in the home.
7. You Have Life Insurance Through Your Work
Do you have a group life insurance policy through your work? It’s important that you still buy your own individual life insurance policy. It’s very risky to rely on life insurance through your employer because you could change jobs or get fired. This could jeopardize your coverage because you may lose it entirely or it may become too expensive to keep. Also, group life insurance becomes more expensive as you get older. You’ll be better off buying a backup life insurance policy to make sure that you always have some coverage if you ever leave your job.
8. Business Owners & Partners
Do you own a business? Do you have a business partner? You may want to look into buying a business life insurance policy depending on your business goals and what you’re looking to protect..
9. Life Insurance For Your Parents
Purchasing a life insurance policy on your parents provides a death benefit to you if you’re the named beneficiary or contingent beneficiary of the policy. When you are paying the policy’s premiums you should designate yourself an irrevocable beneficiary in order to protect the premiums you’ve paid into the policy.
10. Senior Life Insurance & Retirement
At this stage in your life, you may not have any dependents. Of course you’ll want to be sure your final expenses are covered just like every stage we’ve covered. Perhaps you’d like to leave money to a favorite charity or leave a legacy? At this stage in your life, the cost of life insurance can be high. You’ll need to review your finances to see if buying life insurance makes sense or not.
I don’t have dependents – Do I Need Life Insurance?
It’s possible. As we’ve mentioned, you may want to secure a life insurance policy just to cover your final expenses or protect a business. When it comes to final expenses – burial costs can range anywhere from $7,000 to $12,000.
Every situation is different
At Life Insurance Blog, our number one goal is to find the best life insurance companies for you. Whether you are in perfect health or have a preexisting condition, we’ll search from over 60 top rated companies in order to find the best policies available.
In the cliché to end all clichés, everyone is different. It’s important to look closely at your own situation rather than relying on averages the masses have set.
For example, if you are a single bachelor late into your life with no immediate family you may not think twice about life insurance because you have no one to benefit from it.
But if you are the breadwinner for a family then you have a vested interest to provide for them even if you should pass on. There are always life insurance advantages and disadvantages depending on your age, income, and stage of life.
Learn from Oscar Wilde
The Irish playwright may be known for his witticism and ability to take pretentious self-portraits, but his life insurance advice is largely forgotten – until now anyway. Wilde’s famous quote, youth is wasted on the young, is easily applied to life insurance.
Most people are much healthier when they’re younger. As you grow older you are more likely to have dangerous diseases, ailments, or to have succumbed to an injury that can lead to future complications and long term disability. Most life insurance policies require a medical report and your coverage and rates can be adjusted based on what comes forth through the report.
If you get a term life insurance policy when you’re younger (and healthier) and decide to convert to a whole life insurance policy later, your coverage will still be based on that first medical report and any ailments that may have befallen you are not factored in.
While it may not make a lot of financial or practical sense to purchase a life insurance policy as a healthy, able-bodied “youngster,” doing so can make sure that you can still be protected later on in life. But of course, this all depends on your life goals and ambitions. Take the time to take a critical look at your current position in life and where you expect to be years down the road. Perhaps you buy more than 1 life insurance policy and use a life insurance laddering strategy.
It doesn’t matter if your best friend, neighbors, or colleagues think about taking out a life insurance policy. In the end it is up to you and what your goals and needs are.
When Should You Buy Life Insurance
Age will always be a major factor with the cost of life insurance. Securing coverage now vs later will usually be the best strategy when trying to get the best price. Call us at to discuss your specific situation and we can help you get approved for life insurance.
Related Topics: Life Insurance 101