When's the Best Time to Buy Life Insurance | Good Ezines

by Dennis Jarvis

People will call in and ask when is the best time to buy life insurance? Life insurance brokers are not suppose to be sarcastic so we avoid the “before you die” calls. I’m not sure you can really be funny with the subject of life insurance any way. Just annoying. In light of that, let’s really take a look at timing in terms of when to purchase term life insurance to find out if there’s an advantage.

No one has a crystal ball otherwise we wouldn’t need life insurance any way. More accurately, no one could afford it in such a situation. Once we’ve come to terms with the underlying need for life insurance, when’s the best time to buy? The short (and usually right) answer is as soon as possible. I know you wouldn’t expect anything else from from a broker but it’s solely in your interest in this case. Your age is the greatest determinant on what your life insurance rates will be and maybe more importantly, what you will pay during the entire term of coverage on a cumulative basis. Health may allow you to qualify but age dictates the rate more than anything else.

The problem is that few people are aware of this fact or even the need for life insurance in their 20’s. Now and then we get a person in their 20’s who’s responsible beyond their years but it’s a) rare or b) the result of a crash course in maturity which is loosely translated as a sudden addition to the family (new baby and/or spouse). Term life insurance can be incredibly inexpensive when purchased in your 20’s. With every passing decade, the rates will continue to increase at an ever fast clip. In your 20’s $500K for 20 years can be around $30/monthly. That jumps to almost $50/monthly in your 40’s. The good news is that if you are in your 30’s, the rate isn’t that different than a person in their 20’s. This is one of few times we get to feel young again! The reason is that the risk of a 20 year old and 30 year old are both pretty comparable (which in this case means low). It goes up quickly from here.

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