What is the right time and age to get life insurance? Generally, you need to be between the ages of 18 and 86 to get life insurance coverage. This age range varies across different insurance companies.
Getting life insurance at an older age does not make it less effective if it is gotten at a younger age. However, becoming an adult typically necessitates getting life insurance, especially when you start having children and family members who rely on your income.
Regardless of your age and status, you can still get life insurance to protect you against a myriad of risks that affect humans today.
With this comprehensive guide, we aim to enlighten you on when it is most ideal to purchase life insurance. You will also learn about factors that can affect your life insurance rates.
When Should You Get Life Insurance Coverage?
Life insurance is a type of insurance you don’t want to ignore, owing to the numerous benefits and coverage options it offers individuals.
Hence, we encourage our readers to purchase life insurance, as it will come in handy when a difficult situation arises. You can get life insurance when:
• You’re starting a new family
Starting a family means you have more responsibility on your shoulders, especially if you are expecting your first child. When you have your first baby, you will most likely be determined to protect your child and cater for his/her needs at all costs.
This means that the upbringing and survival of your baby depend on your income; hence, you need to plan ahead by getting life insurance.
Getting life insurance coverage will enable you to support your family financially in the event of unforeseen circumstances. It can also provide your partner with a large amount of money if you pass it on to cover living expenses.
• Buying a home
Being able to afford a home is indeed a significant milestone for so many people, and picking up the keys to your first home comes with satisfaction and peace of mind.
It is a wise decision to purchase life insurance as soon as you buy a new home. Some people purchase life insurance at this point to ensure that the mortgage is paid off if they die before the conclusion of the loan term, especially if the home is bought with a third party.
• You have people who depend on your income
Life insurance is a great option for those who have family members and extended relatives who depend on their income.
It brings peace of mind to know that your family is in good hands, even if you pass on at any time. There is a policy under life insurance called family protection.
This policy covers funerals, interest-only mortgages, and living costs for your partner and children if you die during the term of your policy.
• You’re worried about the costs of your funeral
If you’re worried about the cost of your funeral, this is the right time to get life insurance. It would help ease the financial burden of catering for your funeral.
If a policyholder dies during the policy term, the beneficiaries will receive a lump sum payout from the policyholder’s life insurance. This amount will then be used to cover the cost of the funeral and other related expenses.
Factors That Affect the Cost of Life Insurance
Just like every other type of insurance, life insurance includes payment of premiums for risks covered under the policy. That being said, there are several factors that can affect the rate of your life insurance, such as;
- Age: Your age has a huge effect on your life insurance premiums. Most insurance companies determine your insurance rate based on your age. Those who are older will most likely be charged higher premiums, so you should plan ahead before purchasing life insurance.
- Type of Job: Your occupation has an effect on your premiums; most insurers will request the type of job you do, and if it is a risky one, you will be charged higher premiums.
- Lifestyle and Hobbies: If you are the type who smokes or takes alcohol excessively, you are most likely to be charged higher premiums. This is because alcohol consumption and smoking are considered high-risk behaviors that could lead to severe health problems.
- Health Status: Your health also has an effect on your life insurance premiums. Most insurance companies charge premiums based on your medical history.
These are just the basic factors that can have an adverse effect on your life insurance premiums. When buying life insurance, your insurance provider will request this information from you. Ensure you are honest, so you don’t jeopardize receiving a payout in the event of a claim.
How to Buy Life Insurance
The process of getting life insurance is easy and straightforward. Once you’ve reached a decision on when to get life insurance, follow the steps highlighted below:
- Evaluate your need: The first thing to do is to assess your needs to determine how much coverage you will purchase.
- Shop around for insurance: A great way to save money and get the best rate is by shopping around. Compare quotes across different insurance companies. Make sure the coverage provided under your policy covers your needs.
- Submit an application: Once you’ve chosen the insurance company to work with, fill out the application form and submit through the specified channel. Ensure you provide accurate details on the application form to avoid issues later in the future.
If your application is approved by your insurance company, pay for the premiums, and the coverage will take effect immediately. Many policies require waiting periods before they take effect. To avoid delay, you may want to purchase insurance a little earlier than necessary.
FAQs
Is it too late to purchase life insurance?
No, it is never too late to get life insurance, regardless of your age. Even if you are almost 80, you can still get life insurance.
However, it is important to note that it is more expensive and difficult to buy a life insurance policy as you get older. But it is worth purchasing, as it offers a wide range of benefits to policyholders who seek peace of mind and financial security in their twilight years.
When don’t I need life insurance?
Life insurance is one of the vital insurance policies an individual should purchase in his/her lifetime. However, it may not be worth considering if you are single and don’t have people who rely on you.
You may also not need life insurance if your partner earns enough money to sustain your family and cover important bills. Also, if your income is low and you have dependents who are eligible for state benefits, you may not need life insurance.
