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When is the Best Time to Buy Life Insurance

When is the Best Time to Buy Life Insurance

If you’re thinking about your future and wondering when the best time to buy life insurance is, then you’ve come to the right place. Today, we’re filling you in on all of the need-to-know details.

Depending on where you are in your life, purchasing life insurance may be something you’ve thought a lot about. Or, not the other hand, maybe it’s not even something you’ve seriously considered. 

Life insurance was created to help ensure that, in the event of your death, those who depend on you have a secure financial safety net in place. Unfortunately, most of us don’t have access to a crystal ball and therefore are not sure of when death will occur. So, it’s best to be prepared for the worst and hope for the best. 

But when is the best time to invest in life insurance? Continue reading to find out.

What is the Ideal Age to Buy Life Insurance?

It’s easy to put off thinking about investing in life insurance; it’s even easier to put off actually pulling the trigger on purchasing a policy, especially for younger people. However, the younger and healthy you are when buying life insurance, the more cash you can save. The best time to invest in life insurance is as soon as you can, assuming you have dependents. In most situations, the younger you are when you purchase a policy, the lower your premium will be.

The price of life insurance typically increases as you age, since the older one gets, the more likely they are to develop an underlying health condition which can result in higher mortality and life insurance rates. Generally speaking, a person will pay less for term life insurance at age 25 than if you wait to buy until age 40. Waiting until age 60 typically results in an even bigger price increase.

Buying Life Insurance for Those in Their 20s and 30s

In many situations at this stage of life, buying life insurance takes the back seat, and priority goes to paying off student debt, purchasing a home, or starting a family. However, each year you put off buying life insurance, the more likely you are to pay in premiums. 

A major perk of having a life insurance policy in the age range is that it can be used towards paying off debts owed by your estate.

Those in their 20s may not have a steady, stable income and might prefer a term life insurance policy since the premiums costs are much lower. Opting for a more affordable policy is much better than owning no policy at all.

Look for a policy that could cover funeral expenses and any outstanding debt that you might have. A good rule of thumb is to invest in a policy that is worth eight to 12 times your income. However, if you are debt-free or close to it, a policy that is two to three times your income plus funeral costs should be sufficient.

Buying Life Insurance and Individuals Over 50 

If you are over age 50 and in excellent health, getting a life insurance policy shouldn’t be too much of an issue. However, if you are a smoker or have any medical conditions, you can expect your premium to be slightly higher. If you’re over age 60 and are looking to buy life insurance, a term policy is your best option, since the premium will be lower and remain consistent during its term. 

Buying Life Insurance for Married Couples and Families

Without a life insurance policy, your spouse might be responsible for your debt if you pass away. To ensure your loved ones are provided for in the future, it’s recommended life insurance coverage that’s eight to 12 times your annual salary.

Which Policy is Right for You Based on Your Age

Under Age 30 — For most young adults, a term life insurance policy is both sufficient and affordable. However, as you get older and are able to spend more on insurance premiums, a whole-life policy lets you purchase higher coverage amounts at a set price that cannot increase. The older you get, the more expensive whole life policies become. So, the younger you are when you purchase your policy, the more affordable it will be over the span of your life.

30 to 60 Years Old — Universal life insurance policies, also called whole or permanent, can be a fantastic option, depending on your specific financial situation. If you have a lot of debt, you may want to select a high-value term life insurance policy until you can pay off the debt. If you don’t require a large amount of coverage, a mid-range universal life policy is a great investment due to its ability to grow over time.

Over 65 Years Old — For individuals over 65 that have little to no debt and want to save money, final expense coverage is a great, affordable option that often has no medical exam requirement. These policies cover funeral and burial expenses without placing a financial burden on the family.

What Policy Length Do I Need?

Determining which term length is right for you depends on your age and certain life events (Do you have kids? Are you buying a home? Are you starting a business?). The length of most term insurance policies is typically 10, 20, and 30 years. However, some insurance companies offer options in five-year increments.

Need to Buy Life Insurance? Contact Bear River Mutual Insurance 

The most ideal time to buy life insurance is as soon as possible, and no matter how you look at it, it is a wise investment. 

If you need life, health, auto, home, business, or another type of insurance, contact the professionals at Bear River Mutual Insurance. Our team of experts is committed to helping you find a policy with the best rates and protection, giving you and your family the peace of mind you deserve. Our team is dedicated to finding the perfect balance of security and value. 

We proudly serve individuals and businesses along the Wasatch Front and have locations in Provo, Orem, and Salt Lake City in Utah. Contact us now for your quote.

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