When Is A Good Time To Get Life Insurance?
No one likes to think about the fact that they might die prematurely rather than living to a ripe, old age, but the truth is, you never know what might happen. The last thing that you want if the unthinkable should happen is not having a proper life insurance policy in place. Exactly when an individual should buy life insurance depends on each situation, but as a general rule, the answer is right now. Life insurance can be likened to auto insurance; you hope you don’t need it, but having it gives you peace of mind.
There are two basic types of life insurance policies, term insurance and whole insurance, and most experts agree that in most cases term life insurance is the better choice. The basic difference is that whole life insurance is a lifelong policy and has an investment component added in. This type of insurance allows you to build up tax-free cash. If, however, you add in the built-in fees, surrender charges (if you should cancel the policy), and the commissions, it can take a huge chunk out of your investment. In addition to that, whole life premiums can be up to 10 times that of term life premiums. Term life, on the other hand, gives you fixed premiums that you can pay annually, quarterly, or monthly for a pre-set number of years and only death benefits are received.
Even after the decision between whole and term life insurance is made, it is still very important to purchase the appropriate policy. If you choose a term policy that runs out when you are 75, it probably going to have difficulty purchasing another policy. The earlier in life that you buy life insurance, the better off you are. As you age, health issues and life choices, such as smoking, etc. can vastly affect your premiums.
When getting life insurance quotes, it is always wise to inquire into policies that allow you to purchase additional coverage as needed. As certain life events occur, such as getting married, obtaining a mortgage, or having children, your insurance needs will change and it is wise to have a policy that will change with you.
Whatever your situation and age, if you don’t already have this type of insurance, now is the time to begin getting life insurance quotes. Like any other product, life insurance prices (as well as coverage) can vary greatly and getting the best for your money is always the right choice.