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When is the best time to buy life insurance?

Life insurance is a crucial component of financial planning, providing a safety net for your loved ones in the event of your untimely death. However, it can be challenging to know when the best time is to purchase a life insurance policy.

In this article, we will explore the factors that affect the decision of when to buy life insurance and help you determine the optimal time for you.

When is the best time to buy life insurance?

The best time to buy life insurance is as soon as possible, especially if you have dependents or loved ones who rely on your income. Life insurance premiums are generally based on age and health, meaning that the younger and healthier you are when you purchase a policy, the lower your premiums are likely to be.

Furthermore, life is unpredictable, and unexpected accidents or illnesses can occur at any time. By having life insurance in place, you can have peace of mind that your loved ones will be financially protected in the event of your untimely death.

Waiting to purchase life insurance can also be risky as you may develop a health condition that can result in higher premiums or being denied coverage altogether. Additionally, the longer you wait, the more expensive life insurance can become.

Overall, it’s important to remember that life insurance is a critical component of financial planning, and the best time to buy it is as soon as possible to ensure you have the coverage you need to protect your loved ones.

Factors to consider when buying life insurance

When purchasing life insurance, it is crucial to consider several factors that can impact the coverage you need and the premiums you will pay. Key factors such as:


Age is a critical factor to consider when purchasing life insurance. Typically, the younger you are, the lower your premiums will be, as you are considered less of a risk. While this fact may seem obvious, what is often lost on some people is that this applies to all ages. So, sure, life insurance is typically going to be less expensive for a 20-year-old in comparison to a 40-year-old, but it’s also probably going to be less expensive for a 51-year-old compared to a 52-year-old as well.


Your current health status is another crucial factor to consider when buying life insurance. If you have a pre-existing medical condition or lead an unhealthy lifestyle, your premiums may be higher. You may also need to undergo a medical exam before being approved for coverage. On the other hand, if you are healthy, you may qualify for lower premiums and may not need to undergo a medical exam.

Here is where some clients fall into the trap of thinking that because they are healthy, they don’t really need to worry about buying life insurance right away.  Sadly, individuals using this type of logic will often find themselves in a difficult situation later in life when only after a health scare do they begin shopping for coverage.


One of the most common reasons why someone will choose to purchase a life insurance policy is to protect their loved ones from the financial loss that would occur due to their death.  This is why many choose to purchase a life insurance policy once an insured begins to have people significantly depending upon them financially.

Debt and Financial Obligations:

If you have significant debt or financial obligations, such as a mortgage, car loan, or credit card debt, you may require more life insurance coverage to ensure that your loved ones are not burdened with those expenses if you pass away. It is also essential to consider future financial obligations, such as college tuition for children or ongoing medical expenses.

Dependents and Beneficiaries:

If you have dependents or beneficiaries who rely on your income, you will need to consider how much coverage is required to support them in the event of your death. You may also want to consider whether you want to name multiple beneficiaries or set up a trust to manage the funds.

Future Plans:

Your future plans, such as purchasing a home, having children, or starting a business, can impact the amount of coverage you need and the type of life insurance you should purchase. For example, if you plan to start a business, you may want to consider purchasing key person insurance to protect your business in the event of your death.

Types of Life Insurance

Life insurance can be divided into three main categories: term life insurance, permanent life insurance, and final expense insurance.

Term Life Insurance:

This type of life insurance provides coverage for a set period, usually between 10 and 30 years. It’s a more affordable option and can be suitable for those who need coverage for a specific period, such as until their children are grown or their mortgage is paid off.

Permanent Whole Life Insurance:

This type of life insurance provides coverage for the duration of your life and includes a cash value component. Although it’s more expensive than term life insurance, it’s a good option for those who want lifelong protection and the ability to build cash value over time.

Final Expense Insurance:

This type of life insurance is designed to cover the expenses associated with the policyholder’s death, such as funeral costs and medical bills. It’s a type of permanent life insurance and can be an affordable option for those who want to ensure that their end-of-life expenses are covered.

Common excuses people use to postpone buying today

“I’m young and healthy, so I don’t need it yet.”

While being young and healthy is a good thing, unexpected events can happen to anyone at any time. The younger you are when you purchase life insurance, the lower your premiums are likely to be. Also, some health conditions may develop later in life, making it more difficult or expensive to get coverage.   It’s also important to remember that, the teenage driver texting on the phone doesn’t care how healthy you are when they run the red and crash into you.

“It’s too expensive.”

The problem with life insurance is that because it is such a personalized product, most people don’t really know how much it’s actually going to cost until they’ve done a bit of research.  The process is also sort of intimidating for some, particularly those with pre-existing medical conditions, which leads many to just assume that it’s going to be too expensive.  This is why we always tell people to let’s first see if you can qualify for coverage, then we can know for sure if it’s going to be too expensive or not.

“I have life insurance through my job.”

While employer-provided life insurance can be a good benefit, it may not be enough to fully protect your loved ones if something were to happen to you. Plus, if you leave your job, you may lose that coverage.

So, imagine how heartbreaking it is for someone to get diagnosed with a disease that causes them to have to quit their job, only to learn that when they do, they automatically lose their insurance, and now, because of their current health condition, they are unable to qualify for a new life insurance policy!  This is why we always recommend owning your own life insurance policy independent of what you may or may not have through work.

“I don’t have any dependents.”

Life insurance isn’t just for those with dependents. It can also be used to cover final expenses and outstanding debts, such as mortgages or student loans. Additionally, if you plan on having dependents in the future, it’s better to get coverage while you’re younger and healthier.

“I don’t have time to research and buy a policy.”

Buying life insurance doesn’t have to be a time-consuming process. With online resources and tools, you can easily compare policies and premiums and get coverage in place quickly. Additionally, many insurance companies offer the option to apply for coverage online.

“I don’t know how much coverage I need.”

Figuring out how much life insurance coverage you need can seem overwhelming. Still, there are online tools and resources that can help you calculate your needs based on your income, debts, and other financial obligations.  We can also help you with this process by showing you what your insurance might cost, which many clients use as a guide to determine how much they will ultimately purchase.

“I don’t understand how life insurance works.”

Life insurance can seem complex and confusing, but by doing a little research and talking to an insurance agent, you can gain a better understanding of how it works and what type of policy is best for you.  The biggest hurdle most people face with this concern is their fear of asking too many questions.  But don’t worry, we love questions, it shows us that you’re truly interested and make us want to work harder for you.

“I’m single and don’t have anyone who relies on me.”

Even if you’re single and don’t have dependents, life insurance can still provide benefits. For example, it can be used to cover funeral expenses and outstanding debts or as an investment tool for future financial planning.  Some life insurance policies will also allow you to purchase additional riders commonly referred to as “living benefits” for the insured which can be quite beneficial.

“I’m too busy to deal with it right now.”

Life is busy, but it’s important to make time to prioritize financial planning. The good news is that purchasing a quality life insurance policy doesn’t have to take a ton of time or research anymore.   Much of the process can be completed over the phone or online, and in many situations, applicants can avoid taking a medical exam by applying for a simplified issue life insurance policy.  All you really need to do is take the first step and get the ball rolling!

“I don’t want to think about death.”

Thinking about your own mortality can be uncomfortable, but by purchasing life insurance, you can have peace of mind knowing that your loved ones will be taken care of in the event of your untimely death.  It can also be quite cathartic, knowing that you have everything in place to ensure the financial security of your loved ones.

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