Best Times to Purchase Life Insurance

life-safetyThe best time to purchase life insurance is when you are young. And you aren't getting any younger, so there's no time like the present. The younger you are, the cheaper your package will be. The main question for buying life insurance is whether or not you need it. Chances are if someone is claiming you as a dependent on their taxes and you're still living off your parents, you probably don't need to be buying life insurance.

The Purpose of Life Insurance

To understand whether or not you need life insurance, you have to understand what it protects and what purpose it serves. Life insurance is a contract between you and your insurer that they will give your family and/or dependents a sum of money in the event of your death. This is to protect them and their futures in the case of your death. For example it would benefit if you have a wife and kids, who all rely on you and your salary to pay for housing, other living needs and education. Usually a life insurance policy covers 7-10 times your annual salary, which in effect would be like 7 to 10 years.

Start Thinking

If you think you could be in a situation where people would depend on your income to live, then it is a good time to start thinking about buying life insurance. If you plan to get married or have kids, you can buy a life insurance policy at a lower rate than if you wait until you are actually married or have kids to buy it. The older you are, usually the more expensive your premium for the policy will be.

But if you are a bachelor or bachelorette and plan on staying so, a life insurance policy might not be necessary. But you still might want to consider purchasing life insurance because it can help pay for funeral expenses any existing debts in case of your death. This way other family members aren't stuck carrying the costs.

Discover Your Needs Then Your Plan

Once you decide if there are people in your life who depend on you financially, you can start the process of looking for the right life insurance plan for your needs. Generally, unless you have a lot of assets that will cover the cost of your death, you should get life insurance.

First you need to look at your life and the people who depend on you. How much will they need to support them in the case of your death? For how many years will they need the support? These are some of the questions you need to think about before you start looking at different policies.

Second get advice. Ask a financial expert or someone who has bought insurance before if there is anything else they think you need in your personal situation.

Third shop around. Different agencies offer different policies. Some types of policies are term life or whole life. Term life generally has a lower premium, but whole life sometimes gives more valued coverage.

If you can't afford a life insurance policy, but think that you need one, you also have some options.

  • Prioritize your other spending to squeeze a little more money from other areas in your budget to help cover it.
  • Check to see if your employer provides it.

Whichever type of life insurance you seek, ultimately it is an important investment than can help secure your debts and loved ones futures in case of your death.

Stephanie Wilmsmeyer is a State Farm Agent in Columbia, Mo, providing life insurance to those in need of protecting their family members. You can find her on Google+!

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