When is the best time to buy life insurance policy?
The need for life insurance is an often overlooked aspect of financial planning that provides valuable security in the event of an unexpected death. Life insurance is a commitment to provide financial protection and support to your family in the event of your passing.
When is the best time to buy a life Insurance policy?
When to purchase a life insurance policy is an important question and can impact the effectiveness of your policy. Various factors such as age, health, and income should be taken into consideration. Generally speaking, the best time to purchase a life insurance policy is while you are young and in good health, as premium rates are usually much lower than if you wait until later in life. Let’s discuss “What is the best time to buy life insurance?” in detail:
Occurrence of Major Life Events:
As an individual grows up their responsibilities towards their loved one’s also increases. Hence, it is essential to get your life insurance plans reviewed with occurrence of some of these major events in your life:
- Marriage – After getting married, your daily expenses increase and you may have additional liabilities such as auto loans, home loans, etc. Hence, getting life insurance or reviewing your existing sum assured becomes a necessity.
- Having Children – Once a child is born, your financial responsibility increases further. Raising the child and funding for his education are some major expenses that must be protected through life insurance.
- Divorce – After a divorce, you may want to change the beneficiaries and also adjust your sum assured to meet with your new set of financial responsibilities.
Read more: How Does A Life Insurance Policy Work In A Divorce
Tax Time:
You may want to buy a life insurance policy or adjust your existing sum assured and its premiums during the end of year while preparing to file your taxes. Purchasing a life insurance policy is an excellent way of saving taxes u/s 80C, 80CCC, 80D, 80DD, 10(10D).
Age and Health:
You can buy a life insurance policy at any age. However, ‘the younger, the better’ as your premiums would be low. It is best recommended to buy a whole life insurance at an older age so that you leave a substantial amount for your spouse or an inheritance for your younger ones in the event of you passing away.
Your health is also an important factor in choosing the best time for purchase of a life insurance policy. Increasing age and health concerns can both impact the premium of your life insurance policy. As you get older and experience health issues, premiums can increase, making this a prime time to invest in a policy.
Income:
You can get a sum assured of 20X your annual income while purchasing a life insurance policy. Hence, when your annual income rises significantly after a promotion at work it is the best time to increase the sum assured of your existing life insurance or buy a new life insurance policy.
Compare options:
Finally, while considering the best time to buy a life insurance policy, it’s important to research and compare plans to find the right policy for you at the right time. Make sure that you are comfortable with the terms and conditions of the life insurance policy before signing up in order to ensure that you and your family are sufficiently covered.
Conclusion:
It is important to note, there is no one-size-fits-all answer to the question of when is the best time to purchase a life insurance policy. However, by taking into consideration factors such as age, health, income, and events, you can determine the best time to buy a life insurance policy for you and your family. Doing your research and shopping around for the best life insurance policy for your particular needs is the best way to ensure that you have the financial protection and support you and your family need if the unthinkable happens.
