When to Buy Life Insurance

Financial Security is Maintained Best When set up Early

Sep 23, 2009 Christopher Pascale

Those providing for loved ones should have a life insurance policy if they are not independently wealthy.

Life insurance has been a proven method over the years for helping people cope financially after the burden of losing a loved one.

Without it, a family has to go on not just without someone near and dear to them, but also with the burden of unexpected expenses that could come from moving, looking for employment, and daycare. And don't forget the funeral.

For these reasons, life insurance should be purchased as early as possible.

At What Age Should a Person Buy Life Insurance?

For those who have purchased a life insurance policy, they know that rates go up after the age of 30. However, if a man or woman has no spouse or children before then, then life insurance might not be necessary.

A 2005 USA Today article noted that the average age of people getting married has risen to 26 for women and 27 for men.

If a couple falls into the above category and do not have children for a few years while both working, then life insurance might not be necessary so long as a moderate amount of money is set aside to cover funeral expenses.

However, despite this, anyone planning on having a family would be well advised to purchase life insurance before the age of 30 to save money on the monthly, quarterly, or annual premiums. Just as someone would not start preparing for a vacation the day he is about to leave, he should not wait to buy life insurance the day a child is dependent upon him to provide sustenance.

Should Stay-at-home Parents get Life Insurance?

Some people wonder whether someone who provides no income should be insured. The answer is usually yes. Stay-at-home parents provide tremendously to a family in the way of saved daycare expenses, and by relieving the other parent of taking days off when the children are sick. They also attend meetings for school, sports, and any other activities the children may be involved in.

Not only will these expenses need to be addressed, but also those of the funeral, which could involve helping relatives who may not be able to attend due to financial hardships.

When not to buy Life Insurance

The best reason not for buying life insurance would be if a person is independently wealthy. Dave Ramsey refers to these people as self-insured in his book The Total Money Makeover.

For these people, a life insurance policy would simply add to what they already have, but those holdings are substantial enough to provide for their loved ones for several years or more, helping their loved ones adjust to life without them just as a whole or term life policy would.

For those who do need insurance, it is best to purchase it before the age of 30 to save money on the premium expenses as well as to provide for loved ones, or future loved ones, in the event that independent wealth and success does not come as expected.

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Life Insurance Protects Those Left Behind