What is the best age to get life insurance?
There is no right answer when it comes to the right time to purchase life insurance, however one thing will always remain the elephant in the room… your age!
There is a reason that cost of life insurance increases as you get older. As you age, the risk for underlying health issues increases, which impacts life insurance premiums, and could even disqualify you from being able to acquire coverage.
So, to put it simply, the best time to buy life insurance is now!
Who should buy life insurance?
According to Bankrate, “There are three groups wo always need life insurance: married couples, people with dependents, and co-business owners.” While that is a great model to follow, we feel that everyone should pursue a life insurance policy in order to lock-in rates now, potentially saving thousands by the time someone decides to pursue a policy after having a life changing event.
For example, if you decide to purchase life insurance as a 25 year old and are single with no kids, it can save you thousands of dollars of premium obtaining a policy now rather than waiting until you are 35 and have a family.
When to buy Term Life Insurance?
As you know, term life insurance covers you for a temporary amount of time. One of the biggest factors in determining when to buy a term life policy and is anticipating when and how long others may be dependent on your income.
· Did you just have a child?
· Do you have a mortgage?
These are 2 of the most common reason people elect to purchase a term life insurance policy. Coverage until your child is grown, or until your debt is paid off.
When to buy Permanent Life Insurance?
With a permanent life insurance policy, also known as whole life insurance, the major benefit is that as long as you continue to pay the premium, the coverage remains in force until you die. Another benefit is that you can build tax deferred cash value as your premium contributions collect. While you obviously have a death benefit to cover loss of income, this type of life insurance gives you a benefit that you can use throughout your life depending on how early you purchase a policy.
· Did you just get married?
· Do you co-own a business?
The cash value that you build may be used for any purpose, such as a down payment to purchase a house, money for college, retirement, etc. and there could be tax advantages as well. From a business standpoint, having yourself and your business partner insured can help to continue operations in the event something were to happen to one of you. Perhaps allowing you to buy-out the other persons share of the business; however these are details that need to be worked out before pursuing a policy.
Do you want to leave more to loved ones? Cover potential loss of income to the household? Then you will need to account for your debts and add more coverage beyond them in order to leave a legacy. Our experts can help you formulate what amount would be best for you in your situation and budget in this case, or any case for that matter. Contact us today at 954 828 1819 or visit us online at mhginsurance.com for a quick and easy quote!