People will call in and ask when is the
best time to buy life insurance?
Life insurance brokers are not suppose
to be sarcastic so we avoid the "before
you die" calls. I'm not sure you
can really be funny with the subject of
life insurance any way. Just
annoying. In light of that, let's
really take a look at timing in terms of
purchase term life
insurance to find out if
there's an advantage.
one has a crystal ball otherwise we
wouldn't need life insurance any way.
More accurately, no one could afford it
in such a situation. Once we've
come to terms with the underlying need
for life insurance, when's the best time
to buy? The short (and usually
right) answer is as soon as possible.
I know you wouldn't expect anything else
from from a broker but it's solely in
your interest in this case. Your
age is the greatest determinant on what
rates will be and maybe more
importantly, what you will pay during
the entire term of coverage on a
cumulative basis. Health may allow
you to qualify but age dictates the rate
more than anything else.
problem is that few people are aware of
this fact or even the need for life
insurance in their 20's. Now and
then we get a person in their 20's who's
responsible beyond their years but it's
a) rare or b) the result of a crash
course in maturity which is loosely
translated as a sudden addition to the
family (new baby and/or spouse).
Term life insurance can be incredibly
inexpensive when purchased in your 20's.
With every passing decade, the rates
will continue to increase at an ever
fast clip. In your 20's $500K for
20 years can be around $30/monthly.
That jumps to almost $50/monthly in your
40's. The good news is that if you
are in your 30's, the rate isn't that
different than a person in their 20's.
This is one of few times we get to feel
young again! The reason is that
the risk of a 20 year old and 30 year
old are both pretty comparable (which in
this case means low). It goes up
quickly from here.
take away is that the best time to
buy term life
insurance is in your 20's or
30's. You will pay more going
forward after that but even then...the
earlier the better. Life insurance
rates are based on risk and probability
of someone passing away. This risk
increases as we get older unfortunately
and this is felt directly in the life
rate we pay. When you buy life
insurance at the best time...when you're
young...you lock in that rate for the
duration of the policy. This save
you significantly during the course of
the policy. It's funny, most
people in their 20's would jump if
someone were to offer them almost $5000
but will wait to get life insurance in
their 40's and pay this amount during
the length of the term because they
didn't buy at the best time.
Always keep in mind that the best time
to buy life insurance is when you have
legitimate life insurance needs.
This is usually in the form of
dependents that rely on you financially.
If you are care-free with no dependents
in your 20's, a full policy might not
make the most sense for you. Most
people cue into the need for life
insurance when starting a new family,
business, or encountering other typical
needs for life insurance.
You'll know when you really NEED life
insurance and that's probably the best
time to purchase. Keep in mind
that age dictates the rates for the most
part but health "buys" you life
insurance. You need to be in good
health for the most part to qualify for
life coverage. You're more likely
to be in good health and hence in a
position to qualify when you're younger
since many ailments accompanying age.
Young and healthy...the best time to buy