Most people don’t like talking about dying, but it’s something that will happen to us all eventually. Seeing that death has a 100% success rate, it makes sense to prepare for it. Life insurance is a great tool to take care of your loved ones after you die.
One of the biggest questions people have about life insurance is, “when should I buy?”
The answer to this question doesn’t really have much to do with age. You should buy life insurance when the stage of life requires it. If you’re not married, don’t have kids, and don’t have a lot of debt, then you can probably wait a bit to buy.
On the other hand if you do have a spouse, kids, or debt, then life insurance is highly recommended.
Even if it’s just a small policy to help pay for funeral costs or cover student debt, life insurance can be super helpful.
The stigma that life insurance is only for people 40 and up is false. Life insurance is for anyone, at any age, who has financial obligations they want taken care of in their absence.
That being said, the younger you buy the cheaper it is, typically. Life insurance policies are generally sold in either 10, 20, or 30 year terms. Meaning you can lock in a monthly premium for 10-30 years. At the end of the term you’ll need to buy a new the policy.
The advantage of buying young is that the price of the policy is heavily contingent on your health at the time of purchase. Since younger people are typically in better health than older people, it’s easier to get a low premium price.
For example, a 25 year old in good health might get a 30 year policy for $25 a month that covers them for $250,000. If a 50 year old tried to get the same policy it would be much higher.
Not every young person needs life insurance, but those with debt and a family should consider it. You want to make sure your family doesn’t have to pay off your student loans or decrease their standard of living after you pass.
All American Insurance can help you find a great policy no matter your age or situation. Call today for a free quote.