Here’s when you should buy life insurance

Hanah Lopes
Portrait of young couple with toddler girl in the morning indoors in bathroom at home, kissing.
The benefits of life insurance are clear. What’s less obvious, however, is the timing around purchasing a policy. 

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Life insurance provides critical financial support for your loved ones in the event of your death. In exchange for a minimal payment to a provider each month (or annually if you’re looking for a cheaper rate) you can rest assured knowing that your beneficiaries will be financially prepared in your absence.

The benefits of life insurance are clear. What’s less obvious, though, is the timing around purchasing a policy. Since qualifications and types of insurance vary significantly it can be difficult to know when to buy coverage.

If you’re in the market for a life insurance policy now then reach out to a life insurance expert today. They can help you get started with a free quote so you know exactly what to expect.

Here’s when you should buy life insurance

Life insurance, like most other types of insurance, is specific to your personal circumstances and long-term goals. Here are three times when you should buy life insurance. 

After you’ve gotten married

If you’re single and living alone you may be able to get away without having life insurance. But once you’re married and interdependent it makes sense to get covered. This is especially true if you’re the sole breadwinner (although it also helps if you’re splitting the bills with your partner).

And even if you have life insurance through your current employer it may not be enough. Do the math to see if the employer-provided plan will meet your long-term goals. If not, you may need to get a supplemental plan, too. 

A life insurance agent can help determine exactly how much you need.

After you’ve bought a home

Mortgages usually come in 15 and 30-year terms. If you don’t want your loved ones to be forced to move in your absence then you’ll need a robust life insurance plan to cover the full loan amount owed. 

Find out what your exact pay-off amount would be if you wanted to fully pay your mortgage today. Then make sure you have life insurance in at least that amount. Considering life insurance coverage amounts range from hundreds of thousands of dollars to over $1 million you may be able to get a plan that covers the mortgage plus more. 

After you’ve had children

Whether you’re married with a home or single and renting, if you have children then you should generally have life insurance. The amount you have, however, is tied to the number of children you have and their ages.

Younger people have decades of earning potential ahead of them. If they die unexpectedly the financial support they would have provided their children would be gone. So make sure to have enough life insurance to get your kids to legal age (and even more if you want college expenses covered). Older people may not need life insurance for their adult children or they can get away with a minimal policy, depending on their personal circumstances and goals. 

If you’re young with small children, you should get started on a policy now when rates are still low. 

The bottom line

While these are general guidelines for when to buy life insurance there are other times when it also may make sense. Do a realistic appraisal of your long-term goals and personal financial situation to determine if now is the right time to act. 

Speak with a life insurance expert today who can help guide you through the process. 

https://www.cbsnews.com/news/when-you-should-buy-life-insurance/

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