In an ideal world, the sooner a person purchases life insurance, the better. Since life insurance is age-banded, meaning that as each year passes the policy becomes more expensive, the sooner the policy is acquired the lower the premiums will be.
Although right after birth is an optimal time to purchase life insurance, it is fairly rare for families to be focused on insurance for their newborn. A parent or relative can buy life insurance for a minor, purchasing a whole life insurance policy with a lump sum. However more often it is an adult purchasing life insurance for themselves.
That leads us to our focus question, “When should you buy insurance?”
No one really likes to ponder their own immortality, but as we age, these things do creep into our consciousness. There are several life stages that may trigger this thought process that we should discuss.
One life event that usually has couples considering life insurance is a wedding. If something should happen to you or your spouse, ask yourself if you would be able to afford a home, apartment, or the lifestyle you are currently living? Do you rely on both salaries to support the family with groceries, mortgage, utility bills, and transportation? If so, you may want to look into life insurance for both partners.
According to the U.S. Bureau of Labor Statistics, 48 percent of married-couples depend on both incomes to survive. In the event of your passing, you’d want to assure that your loved one is able to stay in the home you shared together. That is where life insurance come in.
A Growing Family
As a couple starts a family, it is a smart idea to investigate life insurance policies for one or both of the parents. Many parents look into life insurance policies that could replace each person’s individual income should they no longer be here to support the family. Many even account for education for the minor children in their calculations.
According to the U.S. Department of Agriculture’s most recent report, the cost of raising a child today is estimated at $233,610. That excludes the cost of college for a middle-income family. Life insurance would cover these costs and provide peace of mind for family members.
Taking this statistic into mind, realize that many couples face complex questions about what finances should take priority for their family. For instance, having life insurance is a smart move for families wanting to ensure financial stability if one partner should pass. Unfortunately, many young couples today have staggering debt. The cost of college, housing, and credit card debt can be crushing and cause a couple to forgo life insurance until they can pay down their debt.
Heading Toward Retirement
After years of focusing on a career, raising a family, and trying to “get ahead,” many soon-to-be retirees contemplate life insurance options. The “golden years” are a time to travel and explore hobbies, not worry about how a partner would make ends meet should one pass on.
According to the National Center for Health Statistics of the Centers for Disease Control and Prevention, the average life expectancy at 78.6 years, it is important to consider that your spouse could live longer than you and need financial support in your absence.
As you can see, at each stage of life, life insurance is imperative. To find out what type of life insurance would best fit your stage of life, call us at 978-774-4338, or contact us through our website with questions.