When Should You Buy Life Insurance? Here Are 6 Indicators It’s Time
When should I start thinking about Life Insurance? You might think you don’t need to worry about it yet… because you don’t have a partner, child, parent, debts and/or have no interest in saving on estate taxes. But, it is a necessity everyone needs so your family can cover at least your funeral expenses. Unless you have your own reality tv show or you’re Jeff Bezos, Life Insurance is the right thing for you. Read our 6 reasons below and learn when you should buy Life Insurance.
Your family relies on your income for their well-being.
Quit reading and go buy Life Insurance right now! A good rule of thumb is purchasing insurance based on 10 times your annual income. However, if your budget is limited some insurance is far better than none.
You have debt.
Making sure your mortgage debt and other debts are eradicated at death, takes the financial pressure off your loved ones and gives them the funds needed to pay your debts and to live worry-free. This becomes especially important if the debt is shared by a life partner, family member, business partner or friend. Keep in mind credit cards, student loans, tax debt, etc.
Your family’s lifestyle would change if you pass away too soon.
Consider things such as education, tuition fees, savings, increased cost of living and other factors when considering life insurance. Ask yourself what would your loved ones have to give up should you pass away unexpectedly?
You have a mortgage
The purchase of a house is usually based on the income of two partners, insurance can come in handy when one partner remains and must cover the monthly mortgage payments. Mortgage insurance only covers the amount you owe to the bank, so as you pay off your mortgage that amount decreases. However, Life Insurance will aid your partner in covering your mortgage as well as contribute to whatever else your partner may need, plus it will never go down as long as premiums are paid.
Significant life event.
As your life changes, your insurance needs change too. This can come in many forms, engagement, marriage, divorce, new employment, having or adopting a child, having a mortgage, retiring and more. These life events should prompt you to reevaluate your life insurance coverage.
You want to leave a legacy.
Life Insurance premiums for charitable organizations are eligible for tax credits. By purchasing a Life Insurance policy and making a charity the beneficiary increases the amount of your donation and provides tax savings too!
If any of the above applies to you, it’s time to get Life Insurance.
Many people put off buying life insurance because they think it is too expensive and don’t trust that the policy will actually pay out. This may be true of post underwritten policies like a mortgage insurance plan from a bank – as those plans usually validate eligibility at the time of claim not at the time of application. Individual Term life Insurance policies are different. Once approved, and provided the information is accurate and truthful, your claim will be paid unless you die by suicide in the first two years or commit fraud. This means no matter how your health or lifestyle changes after your policy is in-force, premiums are paid, your coverage is guaranteed. Life insurance premiums are based on your age – so there is no better time to get coverage than now.
Protip: Having fun is like Life Insurance, the older you get, the more it costs. Purchase Life Insurance as soon as you can, because as you age it will get more expensive. For example, a 30 year old, non-smoking, woman purchasing a $150,000 policy for a term length of 25 years will pay $12.50 a month. However, a 35 year old, non-smoking, woman purchasing the same policy will pay approximately 17% more per month.
Goose Insurance takes the pain away from purchasing Life Insurance. No agents with high pressure sales tactics, no needles or fluids, instant coverage and you are in control of how much you buy based on what you can afford. Goose makes purchasing life insurance easy – right from your smart phone – any time, anywhere.
