Sure, life insurance is a good thing to have. But do you actually “need” it? While it depends on your circumstances, the most likely answer is: Probably!
Usually, people purchase a policy once someone else depends on their income. This could be a spouse, child, aging parent, or even a charity you contribute to. Realistically, who your dependents are will change over time…which is okay as it’s easy to change your life insurance beneficiary (the person who receives your insurance proceeds if you die).
And in actuality, the best time to buy life insurance is when you’re young and healthy. That’s because a term life insurance policy locks in your rate from the day you purchase it. That means if you buy a 30-year term policy when you’re 25, you’ll still be paying the same monthly rate in your fifties. If you wait until you’re older before buying life insurance, you’ll most likely end up with a larger monthly payment rate for the same amount of coverage.
Here, five common life stages where people consider buying life insurance. But remember: You don’t need to fit into any of these stages to make a decision to purchase a plan and lock in a rate.
When you get married
Marriage is often a time to consider buying life insurance. That’s because, even if you keep your finances separate, you likely have joint financial responsibilities, like a mortgage. If one of you were to unexpectedly die, a life insurance policy payout could help the surviving spouse pay off the mortgage and maintain the same standard of living. Life insurance can also be helpful for paying for funeral and burial expenses as well.
When your family depends on your financial help
Do you help out your parents or siblings financially? If so, a life insurance policy with them named as a beneficiary can help ensure that they are still being cared for financially if you were to die. Having a life insurance policy in place can also give you peace of mind that even if you were to unexpectedly die, your parents or family members could use the policy payout to cover any financial emergencies that may arise far in the future.
When you want to leave a legacy
If you don’t have dependents, but want to lock in an affordable policy rate for the future, it may be a good idea to consider your policy beneficiary as a charity. That way, if you were to die, the policy payout will benefit a cause that means a lot to you. Keep in mind that you can always switch your beneficiary if you do become partnered or have children in the future.
When you switch jobs
While some jobs provide life insurance as a benefit, it may be a good idea to make sure you have a personal term policy as well. Why? Because more often than not, the life insurance policy from your employer is not enough to cover ongoing financial responsibilities — many employer policies have a payout amount as low as $50,000. While that may sound like a lot of money, funeral expenses typically are in excess of $15,000. Subtract that from the policy payout and the remainder may not be enough to cover bills like mortgage, childcare, or car payments for an extended period of time.
It’s also a good idea to consider life insurance if you’re going from being an employee to freelancing or staying at home to raise kids since your employer-provided policy may not remain in effect after your employment ends. And in the event you’re planning to be a stay at home parent, you should consider how your partner will manage caring for the kids if you were to die? A policy can help your family pay for full time childcare in such a situation.
When you’re thinking of starting a family
Even if you don’t have kids yet, it may be a good idea to purchase a life insurance policy now if you expect that you will have kids in the future. You can always change beneficiaries on a policy, and having a policy in place now when you’re young and healthy can lock in affordable rates. Expecting now? You don’t need to wait until you have your child to purchase a policy. Pregnancy typically won’t affect life insurance premiums, and some life insurance companies, such as Mosaic Life, don’t require a health exam or urine samples to get covered, allowing you to get covered entirely online in under ten minutes.
There’s no wrong time to get life insurance
If you’re considering life insurance, why wait? There’s no wrong time to buy life insurance, and the flexibility of switching beneficiaries can make it possible for your policy to adapt throughout your life. At Mosaic Life, it’s simple to get a quote and to apply online without a medical exam. And a life insurance policy won’t break the bank…a $1 million term policy can be as little as $1 a day. With easy and affordable options — and a policy that you can apply for on your phone in less time than it takes to order delivery — there’s no reason not to get covered today.
