When Should You Buy Life Insurance
There is no definitive age when you should purchase life insurance. However, if you're wondering when you need life insurance, a good general guide is to ask, would your loved ones be financially impacted if something happened to you today?
If the answer is yes, then consider getting a life insurance policy as soon as possible. The earlier you secure coverage, the lower the premium will likely be. Having a policy in place means the less you'll have to worry about your loved ones' financial security if something were to happen to you unexpectedly today or in the future.
Here are a few more common reasons that may help you decide when to buy life insurance.
At some point, you know you're probably going to need some life insurance coverage. When you are young and healthy, you typically have more options for life insurance.
Choosing a product while you're in your twenties or thirties can provide coverage for a number of years for a lower monthly premium than if you waited until you are older. This is because as we age, we typically accumulate more health problems which, in turn, raise life insurance premiums.
You're Middle-Aged With Dependents
For those approaching middle-age, our needs begin to change. You might already have a policy, but decide that you want more coverage to cover additional financial commitments such as a outstanding loans or childcare. Or, as your children prepare for college, you might want to ensure your family has some extra protection to get them through school and into their careers.
A Term Life Insurance Policy may be an appropriate option. With flexible terms ranging from 10 to 30 years, a Term Life policy can provide you with extra coverage and a death benefit to help pay for education costs and other debts.
You're a Senior Without Life Insurance
If you're a senior who doesn't currently have coverage, there are still options for you. Take advantage of products such as Guaranteed Issue Whole Life Insurance. Guaranteed Issue Whole Life Insurance offers guaranteed acceptance. It doesn't require a medical exam or lengthy health question forms, and you can secure up to $25,000 in coverage.
This type of coverage can provide a favorable rate and peace of mind that your death benefit may help your loved ones pay for burial costs or outstanding debt.
You're Getting Married
Marriage is a big step, and as you prepare to spend your life with your new spouse, helping protect them becomes more important than ever.
If your spouse relies on your income, your death may cause them to struggle to pay the mortgage, bills, and other debts. Your life insurance policy can help protect them financially and take some of that burden away.
You're Growing Your Family
As you start growing your family, you might start wondering how to get life insurance. After all, now that you have children who depend on you financially, they'll likely suffer without your income in the event of your death.
Your life insurance death benefit can help provide income replacement to help support your dependents. If you're a parent, life insurance can help ensure you're still taking care of your children if you were to pass unexpectedly.
You're a Homeowner
For many, your mortgage is the most significant bill you pay every month. If your income is the primary way you cover your bills, your unexpected death could put a severe financial strain on your loved ones — they may lose your home.
Life insurance can help provide your dependents with the security that they'll have help paying the mortgage and other household bills every month thanks to your death benefit.
You're a Business Owner
When you're a small business owner, you're responsible for the livelihood of many, including those outside your family. Life insurance for business owners can help protect your business and ensure it continues running after you pass.
Your death benefit can help your beneficiaries buy out your ownership share, pay off business debts and stay afloat during rough periods. Both term and permanent life insurance policies may make sense for you.
You're Ready to Explore Your Options
Life changes unexpectedly. However, life insurance can help protect your loved ones and give them peace of mind during trying times.
Once you're ready to start picking the right life insurance policy for your needs, consider some further reading.
- Which type of life insurance policy is right for me?
- How to purchase life insurance
- What are the benefits of life insurance?
If you have more questions—such as how much does life insurance cost? or how much life insurance do I need?—we're here to help. We have a team of agents standing by and ready to help you learn how AIG Direct can save you time and money. Get in touch by calling 800-294-4544 or get a quote today.
This material is general in nature, was developed for educational use only, and is not intended to provide financial, legal, fiduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. Please consult with your financial professional regarding your situation. For legal, accounting or tax advice consult the appropriate professional.