Life insurance – that’s for old folks, right?
Not when you consider that unintentional injury is the leading cause of death among people aged 1-44! The right time to buy life insurance might be a lot earlier than you think.
At any age, we can all benefit from life insurance. But what’s the best age to buy life insurance? Why is it better to start earlier rather than later?
Let’s take a closer look at the answer to these questions.
The Best Age to Buy Life Insurance
Let’s get something out of the way right off the bat.
There is no magic ‘best age’ at which to buy life insurance. But that doesn’t mean that there isn’t an optimal time.
It’s much better to take out a life insurance policy when you are younger, rather than waiting until you get older. The reason? Lower premiums.
When you are young, you are much less likely to have serious health problems. Insurers use these to assess your level of risk. If you have health conditions like diabetes, heart disease, or hypertension, they will bump up the cost of your life insurance.
Some feel that around 30 is the optimum ‘life insurance age’. At this point, most people are still healthy. Crucially, they are also starting to take on extra commitments like buying a house and having children.
Types of Life Insurance
There are a few different types of life insurance. It’s important to understand them so that you get the benefits of life insurance you’re looking for.
Term Life Insurance
Term life insurance will pay out a fixed sum during the period you hold the policy.
For example, an individual may take out term life insurance to cover their mortgage in the event of their death. They may also choose to take out additional cover to pay for college or other needs.
After their mortgage term has ended, the policy may no longer be suitable for their needs.
Whole Life Insurance
With whole life insurance, you pay premiums for a set number of years. The life insurance remains in place for the rest of your life.
At whatever age you die, the beneficiary receives a payout – as long as you keep up with the premiums. Paradigm Life offers these types of life insurance.
Survivorship Life Insurance
This is good for couples buying life insurance together. There is no payout until both parties pass away. It’s suitable for couples who do not need a financial payout on the demise of the other.
It’s useful in estate planning. It allows couples to leave a fixed sum for the beneficiaries of their will.
Benefits of Life Insurance
At any age, life insurance can provide peace of mind.
Although we all hope we never lose our life, the fact is that accidents can happen to any of us. If you want to make sure that your financial obligations are covered, it’s time to buy life insurance.
Younger is Better for Life Insurance
The key takeaway from this article? Don’t wait until you’re older to buy life insurance.
Buy life insurance when you are young. Hopefully, you won’t need it, but the premiums will be lower than if you start later.
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