What age is the right age to start thinking about purchasing a life insurance policy? The answer might surprise you: there is no certain age that you will reach when life insurance suddenly becomes necessary. The truth is that people of all ages should seriously consider protecting themselves and their families with a comprehensive and robust life insurance policy.
Why Young People Need Life Insurance
Many young people don’t think they should have to worry about life insurance, after all they are young and healthy. However, as hard as it may be to consider, young people are not immune to accidents or sudden illness. We all have seen examples of people that have passed away in their prime and before their time. In the event of an untimely death,the uninsured young person leaves their dependents and loved ones with unexpected financial burdens in addition to the grief at the sudden tragic loss.
Young people are more likely to have more debt like mortgages and education loans, they are less likely to have significant savings and assets for their family to drawn from in case of their death. Young people who are primary providers for families with young children especially should consider the effects their untimely death could have on their dependent family, life insurance allows the policy holder to provide for their loved ones after they are gone. The best rule of thumb may be to buy life insurance as soon as you acquire a dependent, whether that be as newlyweds when you plan on financially supporting you spouse or as expectant first time parents waiting for a new baby.
Why Older People Need Life Insurance
People in their forties, fifties and sixties might feel that they no longer need life insurance, especially if their children are all grown adults and independent. Those over seventy, often think they no longer qualify for life insurance. However, as you can see, there are life insurance options for those over seventy.
It’s important to consider the costs that passing away might create for your family. This is even more vital if your grown children have families of their own to provide for. Life insurance can cover the costs of your final expenses and avoid burdening your loved ones with unexpected financial liabilities.
Many older people carry life insurance because they want to leave behind a legacy for their children and grandchildren. This type of gift is particularly good for older people that don’t have extensive assets or saving but that still want to leave something for their loved ones.
The Facts About Life Insurance Rates by Age
It’s common sense that young people will typically pay less than older people for life insurance. The older you are the higher your rate will probably be. For example the rate for a healthy 35 year old man will be less than for a healthy 45 year old man. This is why young people should get their policies early to keep their premiums low when possible.
When deciding at what age to purchase a life insurance policy it’s important to consider how long you will require coverage, as well as your specific goals and motivation. If you hope that your policy’s payout will be a legacy for your grown children then you would want to purchase a policy that takes you well into your old age. If you only plan on requiring a generous amount of life insurance while your children are financially dependent on you then it’s important to buy your policy when you are young and for a generous term that will take you through their high school years at least. Once the policy term ends and your children are grown you can always consider purchasing a policy with a smaller payout to cover final expenses and burial costs later on in life.
In the end, it’s important to bear in mind that while age is certainly a major factor in determining your life insurance rates but it’s certainly not the only factor. Older people can obtain the lowest rates available for their policies by living an active, healthy lifestyle and staying in shape. Not smoking, limiting alcohol consumption and exercising regularly can all contribute to a longer life and better health. Good health is always favorable for lower life insurance rates at any age.