When to Buy Life Insurance
Filed under Featured
Should you buy life insurance now? Do you even need life insurance in the first place? These are the questions that you need to ask yourself when deciding to buy life insurance.
Well, everyone needs life insurance because of the death benefits- the sum of money could do something to lessen the financial burden of your loved ones if anything happens to you. To answer your question, it’s probably the best time to buy life insurance now because as you get older the same policy you would buy today will cost you much more. Life insurance companies have huge data to gauge how many people at a given age are going to die within a year and they even know how many will be alive and kicking the next year this time. Of course, many of us won’t want to think about the possibility of death but if we give this serious matter some thought we realize that the best time to buy term life insurance is today.
Why do I emphasis on term life insurance? Term policy is a popular choice for young adults and families because term policies are much more affordable than permanent policies. Anybody with some income and qualifies for certain criteria can start buying term life insurance right now.
Most of the permanent life insurance policies such as whole life, universal life or variable universal life are too expensive for many people so many people have chosen to take up a term policy instead. The best type of term life insurance for you depends on the number of years you need to keep the policy. Most level term policies are available for 10 years, 15 years, 20 years, 25 years or 30 years. The shorter the policy’s term, the lower the premium. I would suggest you to buy your policy as soon as possible because you are at the healthiest moment now so that the cost would be much lower. If you happen to fall ill next year, you would even need to pay double the premium amount.
However, if you decide to go ahead with permanent life insurance, you should take up the variable life policy because it’s an insurance policy and an investment tool merged into one. Insurers would use your sum of money to invest in a wide variety of low-risk financial instruments such as futures and options to diversify across your portfolio. It could be a good way to invest and make some money while the money is sitting inside there. Some insurers even guarantee not to lose away your death benefit even if your investments failed badly. Think about how much money you can save if you start to buy insurance now.
I have spent many years in the life insurance business and I can tell you many unfortunate but delightful, in a way, true stories about people who did not procrastinate to buy their life insurance. These stories are unfortunate because someone died but they are delightful in other ways. The death benefits paid off the outstanding debts and loans that they were struggling with. The children could continue going to the school and the surviving spouse could send them to school every morning in the same car. The big sum of money needed to take care of final expenses was more than enough.
Life insurance plays a big part in replacing income for dependents because life insurance can replace that income gap if you die. It could affect your parents who are 100% dependent on your monthly contribution, siblings who needs a loan from you to further study, children who needs to attend school every day and other few loved ones to rely on you financially. Even worse, the government or employer-sponsored benefits of your surviving partner will likely to be reduced to a dime after your death. When you think of buying life insurance at that time, it’s already too late!
The other side of the coin is rather dirty and ugly. I could tell you many real life stories about many people who died without sufficient life insurance and what happen to their loved ones but I won’t. Do you know that life insurance reimbursements could also pay for estate taxes so that your family would not have to settle other assets or take a minor inheritance? Changes in the federal “death” tax should lower the impact of this tax on some people but some states have increased their state-level “death” taxes in response to the decrease of federal “death” tax.
The best time to buy life insurance is right now because the rising inflation would definitely make the premium go higher every year and the value of your policy would multiple easily just after a few years. I urge you to stop procrastinating and do the smart thing today.