What is the Right Time to Buy Life Insurance

A common question withi regards to life insurancei is ‘What is thei right time or agei to get insured?’ Whilei there is no singlei answer to this question,i this post will makei it easier for youi to make the righti decision.

With all the differenti options like whole lifei insurance, term insurance, endowmenti plans, and Unit Linkedi Insurance Plans (ULIPs), selectingi one as per youri insurance needs can bei confusing. But concerns withi regards to choosing thei right type of insurancei only get into thei picture when you arei out to buy lifei insurance. You should knowi the right time toi make the purchase. Shouldi you do it ini your 20s, or isi 30s the better option?i How about purchasing lifei insurance in your 40si or 50s? The informationi below will help youi decide what is righti for you.

Do you havei people depending on youri income?

• Understanding the right timei to purchase life insurancei is as simple asi understanding what life insurancei means. If you havei purchased life insurance, youri nominee will receive thei death benefit in casei you die within thei policy tenure. In otheri words, the death benefiti works as a replacementi for the income thei policyholder used to earni before his/her demise.
• If youi understand this, then iti shouldn’t be difficult fori you to realise thati the right time toi purchase life insurance isi when you have familyi members depending on youri income. The dependents couldi be your parents, siblings,i spouse or children. Basedi on this, the 20si seem to be thei best age to geti life insurance as mosti people start earning aroundi this age.

The age factor

• Aparti from the dependents factor,i you should also consideri your age to decidei the right time toi purchase insurance. You arei at your healthiest wheni you are young. So,i the chances of youri unexpected demise are comparativelyi low in your 20si as compared to wheni you are in youri 40s.
• The healthier you are,i the lower the chancesi of your demise, andi the lower the possibilitiesi for the insurer toi pay the death benefit.i Due to this, thei life insurance premium isi lower in the earlieri years of life andi start getting expensive withi age. So, even ifi you do not havei dependents, it is stilli wise to purchase lifei insurance early in lifei as it proves morei cost-efficient.

Making the decision

• One ofi the most common investmenti tips that you wouldi come across is purchasingi life insurance as earlieri in life as possible.i Now you know thei reasons why this makesi sense.
• While there is noi fixed age when youi should purchase life insurance,i you should keep thei above points in mindi to decide what isi best for you.