Is Now the Right Time to Take Out a Life Insurance Policy?

Jul 15, 2013

There are so many things in our lives that seem like they can wait for the perfect time. When it comes to life insurance, there probably is no perfect time. There likely won’t come a day when you’ll take a look at your budget and think, “Yes, today is the perfect day to take out a life insurance policy!” Yet the longer you wait, the more costly it can get. Let’s take a look at some things to consider if you’re thinking that it may be high time you took out a life insurance policy.

 

Those Who Feel They Can’t Afford it Often Need it Most

If you don’t think you have a life insurance premium in your budget, take a moment to consider what would happen if you lost one of the incomes in your family. Would you have the money then? The reality is that those who are living paycheck to paycheck or have just a little cash in their savings accounts are the ones who most need life insurance because they’re the ones who would be in the most trouble if an income was lost. If you wait until you have plenty of money in savings, plenty invested in retirement and most of your debts paid off, then your need for life insurance will have diminished.

 

Waiting to Take Out a Policy Has Its Own Risks

One of the most important things to consider is that there are considerable risks to waiting. For example, perhaps you’ll be diagnosed with an illness within the next year or so. If you are diagnosed with diabetes, heart disease, cancer, or any one of many other diseases, then you could be unable to get life insurance in the future or pay a huge premium. On the other hand, if you take out a policy today then you’ll be locked into that premium no matter what happens with your health.

 

The Older You Get – The More it Costs

It’s also worth noting that part of what determines your rate is your age. You may think that a few years won’t make a huge difference, but you could be wrong about that. Most insurance companies use age ranges, so while 1 year may not make that much of a difference to you, it could put you into an entirely different category and increase your rates dramatically. Remember that there is virtually no scenario under which you will have a lower premium if you wait longer.

 

Peace of Mind Brings Its Own Reward

Of course there is something to be said for having the peace of mind that you’re taken care of and your family will be OK if something happens to you. When you invest in life insurance you’ll know they’ll be OK, at least for a period of time. Before you decide on your policy, take a look at http://www.lifeinsurancecompaniesbystate.com/ and learn more about the products available in your state. Familiarize yourself with standard terms and decide how much coverage you need. Then make an informed decision about who can best offer you coverage.

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