When is the Right Time to Buy Life Insurance?

 

It’s a question that many people ask themselves especially as the years creep by and we are more aware of our mortality.

 

When is the right time to buy life insurance? This blog will help to answer some of the burning questions and give the reader food for thought.

 

Generally speaking with timing being everything in life, it’s never too soon to get covered and addressing life insurance needs can provide a peace of mind to anyone no matter what age or in what situation. 

 

The safety net it provides can be invaluable; for monthly or yearly premiums your family will get a lump sum when you die, money that they can use as they see fit to pay bills, education costs, auto insurance, the mortgage….anything and everything. Or even save for the future. 

 

But there are some times when buying life insurance really makes sense. Here are some of those times:

 

You are married or soon will be.

 

Now there is not just you to think about, it's important to consider the long term security of your partner if one of you is not around.

 

Ask yourself how secure your partner would be in the event of your untimely demise. Would they be able to cover funeral costs, credit card debt or a multitude of other obligations. 

 

You have children or are considering starting a family.

 

Having a family really ups the ante; you have dependents that rely on you not just emotionally but financially. And there is education to consider.

 

One survey in the US noted that bringing up a child to the age of 18 can mean kissing goodbye to nearly a quarter of a million dollars. 

 

In Thailand that may be considerably less - unless your child goes to International School then it could be considerably more. 

 

Your spouse who survives may have to take over your household jobs that could compromise her position if she is working. Would her income be enough in the event of your death?

 

You are a homeowner or plan to be soon.

 

It is true that owning your own home provides a sense of security but that may not be the case for a surviving spouse should you die and the mortgage has many years to run. 

 

A term life insurance policy is a good way to pay off the mortgage and cover other debts should the situation arise. 

 

You have retired or will do so soon.

 

It may be that you are caring for grandchildren or even someone disabled in the family. 

 

Or it could be that a surviving spouse will outlive you by ten or twenty years, even more if you have married a younger person. Will your spouse and any dependents be adequately covered so that they can continue to have a comfortable lifestyle in the years ahead?

 

When you take on additional debt.

 

Apart from things like mortgage payment, maybe you have taken on debts like student loans or car loans - remember that those left behind will be liable to make sure these are paid in a timely manner. 

 

Are they able to do so?

 

When your career changes.

 

It is recommended by most providers to get coverage for seven to ten times your annual salary to make sure that everyday expenses and bills are covered. 

 

If you’ve enjoyed a rise (raise) recently or landed that new job make sure that your policy reflects those changes. 

 

So you’re single and happy and think you might live forever!

 

Of course, nobody really believes that but you’d be surprised (perhaps) by how many young people believe it’s just not going to happen to them!

 

You’re still likely to have financial responsibilities such as credit card or debt from college fees. According to US data about two thirds of graduates owe $30,000 already. 

 

Also many single people are helping aging parents. Ask yourself what will happen to them if your financial input suddenly disappears. Could they be left in a dire situation?

 

Life insurance can be especially affordable when you are young and is a great way to boost your financial plans.

 

Finally….

 

Many people buy life insurance when an important milestone comes around, be it a fortieth, fiftieth or some such birthday. That may sound nice but some insurance companies round up your age once you reach your half birthday.

 

Getting covered is quicker and more affordable than you might think. 

 

So NOW could be the best time to act to secure the future for the loved ones you may leave behind. 

 

Rather than wait for the next big milestone or life change.

 

Contact your provider now. 

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