When should I consider getting a life insurance policy?
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Asked March 8, 2011
A common misconception is that you don't need to worry about a life insurance policy until your mid-forties or later. If you haven't set up a whole life policy yet and you are 45 or older, now is definitely the best time. The misconception that this is the correct time comes from the fact that people begin to contemplate their mortality more often by middle age, not that they suddenly need insurance more.
Anyone who has other people dependent on them needs to have a term life policy to make sure that those people are taken care of. Ignore those who tell you that modern medicine makes it possible to live to 90 or more, and take heed of the fact that a drunk driver could be on the road with you tomorrow. The purpose of life insurance is to make sure that people and property are taken care of as well as funeral expenses and other costs.
Even more importantly, a single young person who opens a whole life insurance policy is essentially setting up a savings account from which they will be able to borrow for their entire lives. Starting a whole life policy early in life means you pay lower premiums, but it also means that you are able to see a greater benefit from the money you put into such a policy. One example might be starting a life insurance policy in your early or mid twenties and then borrowing from that account 10 or 15 years later to put the down payment on a family home, and then using it again to add an addition when the family grows too large.
Answered March 8, 2011 by Anonymous