Is there a “best time” to get life insurance? If so, what is it? The simple answer is there’s no one time that’s better than the other. Getting life insurance is about planning for the future to cover your family’s financial needs if anything should happen to you.
In this post, we’ll cover some of the key things to think about when deciding on the best time to take out life insurance. Let’s dive in!
What is the best age to buy life insurance?
There is no easy answer to this question, as there are many factors to consider. Your age, health, lifestyle and family situation all play a role in determining the best time to purchase a policy.
However, there are a few general guidelines you can follow. If you are young and healthy, you will likely get the best rates on life insurance. On the other hand, as you get older, premiums will increase as your risk of death equally increases.
Your situation or status also determine whether or not life insurance is a priority for you. For example, if you have children or other dependents, you might want to take out a plan to protect them financially if something happens to you.
Why buying life insurance while younger is better
As we said, life insurance is more affordable when taken early on in life. Below, we take a look at how age impacts life insurance rates and eligibility.
Age 20-30
This is generally the prime of life and an ideal time to purchase life insurance. You’re likely in good health, with fewer health risks and concerns. And you’re probably just starting out in your career, with a family and loved ones who rely on your income.
Age 30-40
This is still a good time to buy life insurance, although coverage may be more expensive than it was in your 20s. By this age, you may have developed some health issues or concerns that could impact your coverage.
Age 40-50
This is typically the mid-point of life, and coverage may be more expensive than it was in your 30s. By this age, you may have developed more health issues or concerns, and this will certainly reflect in your rates. But overall, you’re still in good health and have many years ahead of you.
Age 50+
At this age, you are no longer considered young and life insurance rates will continue to increase as you age. In some cases, you may not qualify for some plans but it’s still worthwhile to get covered especially if you have people still depending on you.
How to keep the cost of life insurance low as you age
As we age, our health changes and so does the cost of life insurance. Generally, the older you are, the more expensive life insurance will be. The reasoning behind it is that older people are more likely to pass away than younger people, so insurance companies charge higher premiums to offset this risk.
Even so, there are a few things you can do to help keep the cost of life insurance down as you age:
Get quotes from multiple insurers
Life insurance rates can vary significantly from one company to another, so it’s important to shop around.
Consider term life insurance
This type of policy covers you for a set period of time (usually 10-30 years), after which it expires. It’s typically less expensive than Whole of Life, which covers you for your entire life.
Keep your health in check
Maintaining good health habits can help you qualify for lower premiums. Insurance companies often offer discounts to nonsmokers and individuals who exercise regularly.
Include children in your policy
Some insurance providers will allow you to include your children in your life policy, as long as they are below 21 years. A good example is this children’s critical illness cover by Caspian Insurance which allows parents to add their children and claim a payout if they are diagnosed with covered conditions like cerebral palsy, Down’s syndrome and cystic fibrosis.
Conclusion
Overall, the right time to purchase a policy depends on many factors, including your health, financial situation, and family obligations. If you’re young and healthy, you may be able to get by with a cheap term life insurance policy.
But if you have dependents or a lot of debt, you’ll need to consider a more comprehensive plan like the Whole of Life insurance.
Ultimately, the best age to take out life insurance is whenever you feel ready to take on the responsibility of protecting your loved ones financially.
