October 18, 2013

When To Buy Life Insurance

This is a guest post from Gary Dek who writes at MyLifeInsuranceQuotes123.com, a site focused on providing comprehensive life insurance guides. Previously, Gary was an investment banker and private equity analyst.

Nearly every consumer today realizes the importance of life insurance for a secure, healthy financial future and retirement. About 93% of Americans say that life insurance is an essential part of financial planning; unfortunately, only 41% own a private policy outside of their employer’s benefits package. So, how do you decide when it is time to purchase life insurance?

There are going to be numerous times throughout your life where the need to have the best, affordable life insurance plan is obvious, such as potentially lethal car accidents, illnesses, or disabilities, but you can’t plan for those moments. By following a few tips, learning when to buy life insurance is easy.

Marriage

One of the best times to buy life insurance is after getting married. If you are a young family with limited finances, losing all or half the household income can be financially crippling. Since funeral and burial expenses can cost between $10,000 and $15,000 nowadays, each partner should have life insurance that will at least cover final expenses. Depending on which partner passes on first, this guarantees that the expenses will not put a burden on the surviving spouse.
The need for life insurance becomes even more critical when one individual is the primary breadwinner for the family. How much life insurance you will need depends on your existing income, the amount of your assets versus liabilities, and the lifestyle you want your dependents to enjoy.

Buying A Home

Another time to prioritize life insurance is upon purchasing a home. Buying a home is a large, long-term commitment. An adequate policy would make certain that your spouse, children and dependents are not left struggling with making mortgage payments. Because a bulk of your income likely goes toward paying your mortgage, buying a life policy with a death benefit large enough to pay off your home would eliminate one huge expense for your family.

With Children

Having children is a great reason to buy or update a term life insurance policy. More coverage should be purchased with the addition of each new child. This is fundamental because there are many costs involved in providing for and supporting a full household. As children mature and start on the road to their own financial independence, there will also be college/education and living expenses to think about. Given the way tuition rates and cost of living have been increasing, $150,000 to $250,000 per child may provide the right amount of coverage. Just remember – every living situation and family budget is different, so find a figure that works for you.

In Your 30s and 40s

Although it may seem strange at the time, purchasing life insurance is best done when you are young and healthy. This is due to the fact that the life insurance quotes you will find at this time of your life are the cheapest and most affordable they will ever be. Companies are happy to insure those who are young with no pre-existing conditions or medical issues. These factors (or lack thereof) make you a low risk investment. With different kinds of life insurance policies, you will be able to lock in a low premium price because of your age and your rates will remain fixed for the life of your policy.

How To Find The Best, Affordable Life Insurance

Life insurance rates vary widely depending on several different factors, such as the applicant's age, medical history, smoker or non-smoker, diet, exercise, occupation, and dangerous hobbies. Premiums are calculated according to risk, so those who smoke or are older will often have to pay higher premiums for coverage. Comparing life insurance quotes from the best companies is a great way to save money, since it is easy to shop online and find a policy tailored to your individual needs at affordable rates. There are many insurance options to be found online, no matter your circumstances.
Even though some times are better than others for purchasing life insurance, the best, affordable coverage is a necessity for individuals in any stage of life.


--

No comments:

Post a Comment

Blog Widget by LinkWithin