Knowing when to buy coverage makes the process easier.
No one knows when they are going to die. However, there are times when purchasing life insurance is common.
You may be wondering “at what age should I get life insurance?” Generally, getting life insurance at a young age is best. Premiums are cheaper when you are younger.
Most importantly chances are you are healthier. Insurance carriers do look at medications and health treatments to determine your eligibility.
Getting married
Most people get life insurance way too late! Honestly, if you are single and know you have plans to get married, just lock in a plan.
Newlyweds rarely consider life insurance. They are too busy drooling over each other and planning their dream wedding. One of the best wedding gifts is actually a life insurance policy.
Granted, it doesn’t sound romantic! Think about it though…
Most young married couples are building a life together. Often times they share bank accounts and mortgage/rent payments.
Because it’s common for newlyweds to be early in their education or careers usually they aren’t financially stable yet. It takes a while to build a foundation.
Can you imagine leaving your surviving spouse to worry about money? The social security death benefit is rarely enough to help them pay today’s bills.
Some people begin sharing financial obligations before tying the knot. Each couple should evaluate their specific situation and discover whether or not they can truly get by financially if either one we’re to die.
Purchasing a home
Buying a home in not only exciting but stressful! The life insurance piece is usually baked into a mortgage.
What most people don’t realize is they could be overpaying for the coverage with mortgage protection. A good certified financial planner would recommend getting your own plan and taking it out of the loan cost.
What if you purchase it in cash? There are still costs associated with owning a home. Between property taxes, insurance and maintenance there is still a need for at least a little life insurance protection.
Having children
Couples may skip getting life insurance all together until they start having children. Usually because they think their partner can get buy on their own.
Kids on the other hand have a long way to go before they can support themselves.
Parents seems to purchase coverage at all stages throughout parenthood. There is too much risk to wait. Sadly, many do and sometimes it puts their family in a financial crisis.
If you are starting to plan your family, consider getting coverage beforehand. At least during your pregnancy or shortly after baby comes.
Though you may be very distracted by your newborn bundle of love. It’s best to be prepared and get it sooner!
After a divorce
Life insurance protection is often a requirement during a divorce settlement.
If you get divorced and have children, your ex-spouse’s attorney will usually ask for proof of coverage. A certain benefit and beneficiary needs to be in place.
Getting a raise
Congrats! You’re moving up in the world. Receiving a promotion or raise often comes with an increased lifestyle.
While this is not always the case, many people like to be sure to increase their life insurance protection.
It’s important to make sure that if your lifestyle does increase that you are not leaving your loved ones exposed to finances they cannot afford if you die.
Approaching retirement
Is life insurance necessary in retirement? That all depends on your net worth. Retirement accounts and other assets usually have a named beneficiary when you die.
Assets and liabilities are sorted out during your estate settlement.
If your retirement plans include increasing your lifestyle you may want to consider either purchasing or maintaining a life insurance policy.
Starting a business
Entrepreneurship sure comes with a long list of to-dos. Reviewing your insurance portfolio is part of good financial planning.
Business owners often need life insurance to cover essential employees or protect their ownership share of the business.
Business life insurance needs should be kept separate from personal needs. Insurance companies will usually require that during underwriting.
