What Age Should You Buy Life Insurance

There is no minimum age to buy life insurance, as long as you have enough earnings to pay your life insurance plan. Though it is better to get life insurance while you’re young, because as you get older, it becomes more expensive.

You should buy one as soon as you become the subject of an insurable interest wherein someone has an insurable interest in you. It means they will suffer financial loss in case something unexpected happens to you. Having life insurance could benefit you, especially your dependents.

Why Buying Life Insurance When You’re Young is a Better Move

If you are a 20-something, you’re more likely to be independent. Having a job, paying your bills, or even paying your sibling’s school fees. You may also think of buying your own life insurance and naming your parents and siblings as beneficiaries is a good financial move. The insurance proceeds can potentially help your parents in their retirement age, and your siblings to complete their education.

Why Younger is Better? Because life insurance will get more expensive and insurance premiums rise by an average of 8% to 10% for each year you age. 

What’s more, as one gets older, medical conditions are more likely to develop which can also result in higher premium payments. It is possible that your life insurance does not cover pre-existing conditions as well.

The Ideal Age to Have Term Insurance

Even though you may not need any type of insurance in your 20’s yet, it is the best time to buy affordable term life insurance coverage. Most insurance offered the most affordable premium rates when you’re younger and healthier.

In addition, there may be situations in which you don’t have a family of your own that you may think of buying life insurance later. In fact, having life insurance could help your parents pay in the event something happens to you. Think of an affordable way to help financially protect your loved ones. Term insurance could help replace lost income and pay living expenses in the event the insured passes. 

When to Buy Permanent Life Insurance

Having permanent life insurance is a good investment. You can borrow against the cash value to buy a house, a car or even pay for your children’s college. Yet, it is still best to buy permanent 

life insurance when you’re young and are financially stable. Investing in yourself is necessary so you can live your life worry-free.

Permanent life insurance lasts for your whole life and will continue to protect your family as long as you continue making your insurance payment. There are life insurances wherein you are also covered in case of critical conditions that may have landing in the care of a medical facility.

Not everyone needs life insurance, they say, especially if you don’t have dependents. Even though you don’t have children, your aging parents and siblings may still be financially dependent on you.

The Cost of Waiting to Buy Life Insurance

Deciding whether to buy life insurance is a personal choice that should be based on your financial needs and wants for you and your loved ones. 

The longer you wait to purchase life insurance, the higher the cost will be. If you’re planning on starting a family in the future it could be advantageous to look into purchasing life insurance while you are young and healthy. 

The investment portion of life insurance grows tax-free. Paying your monthly premiums, increases your investment rate. The longer you pay into the policy, the higher your investment. Your investment can be used in case of emergency, to pay hospital bills, medical expenses etc.