When should you get a life insurance policy?

There is no right age to get life insurance. In general, the earlier the better when it comes to life insurance, but it depends on your personal circumstances. Whatever age or stage of life you are at, there is a policy for you. Whether you want a joint policy with your partner, term insurance, or insurance for the over 70s, it is never too early or too late to purchase it.

You may be thinking about life insurance if you have dependants that would be left in the lurch if you suddenly passed away. Perhaps a major life event has triggered this thinking such as getting married or buying a house. For these reasons, we generally agree that getting life insurance before the age of 35 is ideal. After the age of 35 premiums, as well as health problems, rise sharply meaning it is much more affordable when you are younger.

When should I purchase term life insurance?

Term life insurance is a popular type of policy for younger people. It covers you for the term of the policy and is often based on the policyholder’s personal situation. If you anticipate that other people will depend on your income, then you will want to take the policy out for as long as your loved ones will rely on you financially. For parents, this may be until their children are grown. For couples who own a home, they might want the policy to cover them until the mortgage is fully paid off. If you are in a couple or have any children then should definitely consider getting coverage, whether you earn an income or not. (Stay at home parents should take out insurance to enable their surviving partner to afford the additional childcare they will need to pay for)

If you have unsecured debt such as credit card debt or private student loans, you would be wise to take out a life insurance policy. Some credit card companies require all outstanding balances to be paid off upon the death of the holder – an insurance policy ensures that your next of kin is not left to take on your debts.

When should I purchase permanent life insurance?

With a permanent life insurance plan, the cash value grows tax-deferred interest. Premium contributions to policies purchased at an early age can accumulate a considerable amount over the years as the cost of insurance is fixed for the entire term of the policy.

The cash value of the policy can also be used as a down payment on the purchase of your first home. If you save enough money, you may even be able to supplement your retirement income. This type of policy requires time to grow, which means an early start is best.

Should I get insurance when I am single?

It depends if you are planning on having a family in the future. If you are then it is good to buy insurance when you are younger so you can take advantage of lower policy prices and accumulate a healthy cash value. The older you get, the more you are going to have to pay so in this case – it pays to be prepared.