There isn’t such a perfect age to buy life insurance. Everything depends on your needs, and it’s never too late to buy life insurance.
Ever since you were born, your parents might have received some invitations to buy a policy. As you are in your 20s or 30s, salespeople approach you to sell their products. The pitch is incredibly attractive: save money by locking in your premiums and ensure your insurability. Yet, there emerges a question: What if I can’t buy one now?
This question stems from your so-called FOMO – Fear Of Missing Out. You have a fear that you might be at a disadvantage if you don’t act now. Salespeople take advantage of this and convince you to buy life insurance. Admittedly, this might be beneficial to you in many circumstances. However, let’s look at various stages of life and see how a policy can benefit you accordingly.
As a kid – Too young to buy life insurance?
Whole life insurance for children will guarantee that the kids are insured for their entire life. It might be too late to buy life insurance when the syndrome is already there. In fact, some unfortunate kids develop a syndrome a few years after they were born and cannot buy a policy. Thus, purchasing a policy is one of the ways to prepare for the worst case.
Buying insurance when you are in your 20s and 30s
This is the stage of life when you’re full of energy. As your health is in good condition, your premium costs less. This is also when you encounter a lot of milestones in your life. These may include co-signing with your parents or partners to make a loan, having kids as your dependents, start a business, etc. Buying a policy will safeguard you from financial risks and reduce any potential burdens for your family.
For example, Laura and Peter borrowed $400,000 to buy a house. Unfortunately, Laura died in a car accident, and Peter had to shoulder their debt independently. Peter realized that Laura’s debt would be cleared had they bought life insurance. Yet, now that she died, it’s too late to do so.
When you’re in your 50s or above 60
At this point, your children have become independent, and hopefully, you’ve paid out your mortgages and have a saving. Some people have lived their life without any insurance and feel no need to buy one. Besides, since health and age are crucial to your qualification to buy a policy and affect your premium, buying one at old age might seem disadvantageous.
However, we believe a policy is still valuable. That you have got by without a policy doesn’t mean that you don’t need one later in life. A policy will help you cover your burial expenses or leave behind a legacy. Long-term care insurance might be an excellent choice for the elderly seeking help without burdening their family.
In brief, a policy is beneficial for people of all ages. Calculate your situation carefully and buy one when you feel the need to.