Why do you need life insurance?
To put it simply and clearly, a person needs life insurance when somebody depends on that person's income. This could be your children, your spouse, your parents, or anybody who benefits from your income. Other aspects which are covered under certain life insurance policies apart from a death benefit are accelerated death benefits or commonly known as living benefits. Living Benefits can be used to pay for chronic illness and the treatment involved or as a supplemental retirement income. When we talk about how the death benefit can be used by the beneficiaries, there is no limit to the range of expenses that it can cover. From paying for funeral expenses, paying off short term debts, funding school and college fees for children to just meeting day-to-day expenses, the coverage amount can be utilized in several ways.
The question about what is the correct age to get a life insurance quote and buy a policy is very common. But to state the truth, the decision about when to buy life insurance should not be based on your age, rather if there is someone who depends on your income, getting yourself insured is important. To understand this with an example, if you are a 26-year-old married man with a wife and new-born child, you need life insurance because somebody is dependent on you, but if you are a 32-year-old single guy and have nobody to fend for, you might not need life insurance except in case you want to cover expenses of a sudden illness or pay debts. So, the fact remains that age should not be the foremost deciding factor for buying life insurance, instead, the dependence of others on you should.
How does buying life insurance at different ages work?
One aspect where your age plays a crucial role is in deciding the life insurance quote or the price that you pay for your policy. A person’s age and health are two important factors that affect the cost of the policy. The younger and healthier a person is, there is less risk of death and disease and so the premiums are affordable. That is why, it is suggested that even if you don’t feel the need to buy life insurance, keeping the unpredictability of life in view, one should buy a policy in their 20s-30s at affordable as basic insurance quotes star with a premium as low as $25 per month for younger people.
Buying life insurance in your 20s-30s.
For most, your 20s and 30s is the time when you are in the best of your health. It is at this time that you might not have anything wrong with your health condition which might worsen in the future. Also, it is the time when most people get married and have kids. Thus, their financial responsibilities double up and so this is the best time when you should consider asking for a life insurance quote.
Here are a few ways in which your beneficiaries can use the coverage amount if you buy life insurance in your 20s-30s.
- Short-debt debts, mortgages, or housing payments
- Paying off student loans
- Funding education and childcare expenses
- Take care of aging parents
- Medical bills or final expenses
Here, you also need to learn that life insurance should not be a one-time purchase, rather you should be revising your policy as your coverage needs change. With more kids or added financial responsibility, one should upgrade their policies and premiums accordingly.
Buying life insurance in your 40s-50s.
If you are a middle-aged person and still uninsured or underinsured, then this is high time that you buy a life insurance quote. Some kind of financial planning is required for the secure future of your family which by this age is a big responsibility for you. It is also true that by this age, your workplace does provide you with some kind of insurance but that coverage is as little as your 2-3 month's salary. So, it's important to get an independent and much more rewarding policy. Another thing to note if you plan to buy a life insurance quote in your 40s-50s is that the cost of the policy at this age is not going to be as cheap as it would have been, had you bought an insurance plan at a younger age, but if all that comes along with the peace of mind that your family’s future is secure, it is worth it.
Here are a few ways in which your beneficiaries can use the coverage amount if you buy life insurance in your 40s-50s.
- Paying the remainder of any kind of mortgage
- Cover expenses for a stay-at-home parent or fund education of your children
- Make up for a gap in coverage due to increased earnings
- Serve as a financial cushion for your family
- Pay medical bills or final expenses
Buying life insurance in your 60s.
It's never too late to buy life insurance, but if you buy life insurance in your 60s, you might not be able to buy term insurance for 20 years or more. So, it is suggested that if you are seeking a life insurance quote in your 60s you should go for a shorter term which does not exceed 10-15 years or go for a permanent insurance plan.
Here are a few ways in which your beneficiaries can use the coverage amount if you buy life insurance in your 60s.
- Clear out debts or unpaid bills
- Protect a spouse that relies on your income
- Financial security for the family
- Paying medical bills and final expenses
Buy life insurance when you need it.
Randhawa Insurance Agency is a trusted insurance quotes provider in California and around. According to us, age is no doubt an essential factor that decides your average life insurance cost, but as far the decision of buying a policy is concerned, that should solely be dependent on if you have people who rely on your finances or not. Plus, the fact that life insurance gets expensive as you get older, it is a smart choice to get a quote while you are young. Feel free to reach out to Randhawa Insurance Agency for a free consultation anytime on the details below.