Unlike home or car insurance, life insurance is considered optional by most people, but for everyone there is at least one good reason to take out a policy. InsuranceHotline.com’s life insurance buying tips make it clear what the reasons are and why delaying can be a big mistake.
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Young People Get Better Rates
The younger the person applying for a life insurance policy, the lower the rate they will qualify for. Every year of delay can mean higher rates as the risk of health problems increases. Insurance companies give the best life insurance rates to people who represent the lowest risk and that means people who are young and healthy.
When taking out a permanent life insurance policy, those who are young can lock in a low premium and have coverage that will last a lifetime. Rates are better on term policies as well.
We compared life insurance rates for a non-smoker on a Term 10 policy (one of the most popular policies chosen) for $100,000 in coverage to illustrate how rates increase as you age. The following were the best annual rates quoted.
Age Male Female 25 $103 $80 35 $106 $89 45 $171 $132 55 $360 $282
Lower premiums are a good reason to buy now.
- Related Read: Why You’re Never Too Old To Consider Life Insurance
Protecting Loved Ones
Even in a family where both parents make a good living, it’s hard these days for anyone to get by as a single parent if one parent dies. For people with children, kids are the top reason to buy life insurance now. And it’s not only for the breadwinner who should have coverage; a stay-at-home parent needs coverage too. Consider the cost of child care in the event that a working parent suddenly has to pay for it.
Raising children is expensive, and life insurance ensures that a sudden death doesn’t force a change in lifestyle. It can keep the surviving family members in the home, pay for school and activities, and keep good food on the table. It means stability in an unstable time.
Health Changes Happen
Even a person who is healthy can be struck by an unexpected illness, and after that illness strikes it is harder to get affordable life insurance. Thinking that health problems are not going to happen until later in life can be a big mistake. People, young and old, are diagnosed with illnesses every day and if you play the waiting game you may find life insurance will be more expensive and harder to get if you delay too long.
Good health is a good reason to take out a policy now—healthy people get better rates, and a sudden change in health status can’t affect the rate once the policy has been issued.
Everyone Has Final Expenses
Even those who have nothing else to plan for financially will still have final expenses, and those can be a major burden on grieving relatives. A life insurance policy takes that one burden away and allows your loved ones to move forward without the strain of more bills.
No one wants to think about death, but it happens every day in unexpected ways. Life insurance provides for those left behind, and making a difficult time easier may well be the main reason everyone should obtain a policy right away. Take the time to obtain life insurance quotes and know your options.