When Is The Best Time To Get Life Insurance

The best time to get life insurance is going to vary from person to person. The biggest factors that will determine when the best time is for you will be family and financial circumstances. Today, we are going to help you better understand when the best time to get life insurance is.

What Is Life Insurance?

Life Insurance is a contract between an individual and an insurer where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. The policyholder will usually pay a premium regularly and the benefits are often used to help with funeral expenses and other post-death related expenses.

Younger Is Better

When it comes to life insurance, buying it younger is always better. Younger people will pay lower premiums as the chance you will have to use it is lower than those of older ages. Young people often put this off as they are paying off current debts, mortgages, and other expenses.

Ideal Age To Have Term Insurance

The ideal age to have term insurance will depend on how long your dependents will be reliant on your income. You will want the term of your policy to last as long as your dependents will need your income. If you are a parent, you will want this to last until your children are grown.

When You Should Buy Permanent Life Insurance

For permanent life insurance, the cash value will grow tax-deferred. Since the cost of insurance is fixed for the entire term of the policy, getting life insurance at a younger age will ultimately be the best time to purchase. While this may not be the ideal time depending on finances, the rule of thumb for purchasing life insurance is “the sooner the better”. If you have any questions regarding life insurance, give Amaya Premiere Insurance Agency a call and we will be happy to assist you.