A term life insurance policy provides a death benefit to your beneficiaries if you pass away during the specified term of the policy. It ensures that your loved ones won’t have to face financial stress in the worst of times. As for the best time to purchase a term life policy for yourself and your family, it depends on your personal circumstances and needs. Read on to find out when is the best time to purchase a term life insurance policy.
When to Purchase Term Life Insurance
Younger is Better
Purchasing life coverage at a younger age can be financially beneficial, as rates tend to increase as you age. Additionally, you’re less likely to experience health issues when you’re younger. Therefore, purchasing life insurance before health issues arise is also important. As you age, your chances of developing health conditions may increase and that could make you ineligible to purchase life insurance.
Other Good Times to Purchase Term Life
There are many milestones in life that we go through. These milestones often involve big life changes. These moments are generally good times to purchase a term life policy.
For example, you may consider purchasing if you are in a changing life stage, such as:
- Starting a new career
- Starting a new business
- Moving in with your significant other
- Buying a home
- Getting married
- Starting a family
- Having children
- Replacing future earnings
- In older age, protecting your estate and final expenses
- Planning your retirement
How Often to Reassess Your Term Life Policy
Not only is it important to know when to purchase a term life policy, but you need to check in on your coverage regularly to ensure it still works for your situation. This is because your coverage needs may change as your life changes. As your personal and family responsibilities evolve, your coverage may need to be adjusted to match. It is wise to check in every few years to confirm that you still have the right amount of coverage. This will help ensure your loved ones are looked after no matter what. Your policy should be sufficient to replace your income and cover outstanding debts, future expenses, and any other financial obligations.
It’s Never Too Early
While it’s important to note that there is no universal “best” time to purchase term life insurance, as everyone’s circumstances are different, it’s never too early to buy life insurance. The death benefit can help to cover final expenses and pay off debts owed by your estate, including student loans and credit cards. It can even be used to leave a legacy behind for a favourite charity/organization. The bottom line is that you don’t want to leave your loved ones with any financial burden, and a term life policy is one way to guarantee that you don’t.