When is the right time to buy life insurance?
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Asked August 14, 2013
If you haven't purchased life insurance by your current age, now is the best time to start. The nature of life insurance makes it less expensive if it is purchased earlier in life, but getting a delayed start is better than leaving your family wanting if something dire should come to you. Keep in mind that you can buy different types of insurance to cover different family goals, and many people do that for events that have definite expiration terms.
Although it is not done as often as it should be, the best time to purchase a whole life insurance policy is to buy one for your children. Because of the life expectancy in the United States, buying a permanent life policy for a child locks in the lowest rates possible. Additionally, if your child develops medical conditions later in life that might exclude them from life insurance coverage, already having a policy in place will mean they are guaranteed coverage that might otherwise be unavailable.
Life insurance packages are designed for every life insurance need, from the basics of funeral costs to leaving a dowry for your daughter's marriage when she's grown. Even if you are single and do not own property, it wouldn't be fair to your family members to leave them financially strapped for your final expenses. Final expense life insurance is low cost, and pays directly to a funeral director or funeral parlor.
If you have a mortgage or other financial goals that have a time frame, you might consider taking out a term life insurance policy for each event. For example, one term policy would pay off the mortgage if you passed away, while another one might set aside funds for your children to go to college. Using term life policies, the policy expires when the need for the coverage has expired. You won't get your money back, but some term life policies can be converted to permanent life insurance.
Whole life insurance policies are a good way to wrap all of your life insurance needs into a single package. In addition to the face value on these types of policies, you also have the advantage of a cash value in excess of the face value. This cash value can be borrowed against without the need of a credit check or collateral, gain interest over time, and can have as many named beneficiaries as you feel the situation warrants. You can even use the accrued cash value in a permanent life policy to pay future premiums for you, in case you become unable to make the payments yourself.
Answered August 14, 2013 by Anonymous