Life insurance is something many people don’t want to think about. After all, it accounts for what happens to our families and loved ones after we die,⛎ a topic most would rather avoid. However, life insurance can be an incredibly important element of financial planning, and it’s often the case that the sooner you get life insurance, the better. Not only does this mean you have coverage starting from an earlier age, but it may also save𝐆 you money.

If you don’t already have life insurance, though, 澳洲幸运5开奖号码历史查询:it’s not too late. Many people without coverage look to buy life insurance to coincꦅide with major life events. If your financial status is changing or you anticipate being the financial provider for a new dependent, it may be an opportune time to shop for life insurance policies.

When To Buy Life Insurance

Life insurance premiums are dependent upon your health conditions, habits, occupation, hobbies, and many other factors. For the most affordable premiums, it’s often a good idea to purchase lif๊e insurance when you’re young and in good health. In other words, the sooner you buy life insurance, the better.

, CFP, RFC, CCFC, senior advisor at CGN Advisors in Manhattan, Kansas, noted that while “we insure a lot of things in our lives with♔out giving it a second thought—our homes, cars, jewelry, and bicycles … when it comes to insuring our biggest asset, ourselves and our ability to generate income, many people are extremely underinsured.” She added that in addition to income replacemen♛t, life insurance can also replace “the care you are providing” to others “in the event that you are no longer around to provide” that care.

Life insurance premiums may be cheaper than expected for young people—or even those approaching middle age. Temporary, term life insurance is especially affordable if you buy at a young age, as shown by the table below. 澳洲幸运5开奖号码历史查询♊:Younger, healthier life insurance customers also typica🦩lly face fewer requirements and hurdles in order to qualify for their policies, and are less likely to⛎ be rejected for a medical issue. 

If you buy a permanent policy that lasts your entire life, it could build 澳洲幸运5开奖号码历史查询:cash value. You can take out this money while alive, adding a savings account to your lif💧e insurance. The sooner you start paying into cash value, the ไmore time it has to grow, thanks to the power of compounding, giving you more money for long-term financial goals. 

Below, we’ve provided a table of average life insurance policy premiums based on the age of the policyholder. These premiums are drawn from Aflac, a major U.S. life insurance provider. Remember that your specific premium costs will be based on the results of your personal application. Costs are also likely to differ from company to company. The data below assumes the policyholder is generally healthy and does not use tobacco products.

How Major Life Events Affect Coverage Needs

Buying life insurance when you’re young🎐 and single would cover your final expenses and debt so they don’t fall on your family. However, major life events often create a greater need and prompt people to consider﷽ life insurance. 

When You Marry

For many people, the first time they may have﷽ someone who depends upon their financial support is when they get married. Life insurance can protect them if you suddenly pass away and replace your income. The death benefit would🎀 also allow your partner to take time off work to grieve. 

Because this milestone is soon often accompanied by other changes—plans to have chil꧋dren or buy a house, increased expenses, and debt, and so on—it’s more important than ever before to ensure both of you are adequately protected in case of catastrophe. 

When You Have Kids

Perhaps the single most important life milestone that indicates it m🎀ay be time to think about life insurance is when you have children. While they are young, your kids are entirely dependent upon you financially. Further, if one parent should die while there are young children in the꧟ house, the surviving family members may face new expenses—for example, the cost of childcare if a former stay-at-home parent now must enter the workforce.

, CFP, ChSNC, ChFC, of Savant Wealth Management in Birmingham, Alabama, said that families of young children are “often persuaded into purchasing whole life policies, which they typically don’t need and can’t afford at appropriate coverage levels.” In these cases, term policies may be the 🐠most effective way to “provide income replacement for each spouse,” he says. Since term is more aജffordable, you can buy a large death benefit to cover your family’s needs.

One key consideration when buying life insurance with children in the home is whether to also take out a policy for your kids. 澳洲幸运5开奖号码历史查询:Children’s life insurance premiums tend to be very inexpꦬensive, but they also provide minimal benefits and are unlikely to be used. It is more urgent for the parents to get proper coverage first.

When You Buy a Home

O🔥ne of the largest expenses any adult is likely to face is purchasing a home. Between mortgage payments, upkeep and maintenance, and miscellaneous costs such as HOA fees, a new home typically brings with it increased bills and expenditures for a family. A life insurance policy can help cover the costs associated with owning and maintaining a home if you should pass away, helping your family achieve stability during what is likely a very difficult time.

As Your Family Grows Older

Life insurance premiums tend to skyrocket as the policyholder grows older and the chances of death increase. And yet, as you and your family grow older, life insurance may become more important than ever to provide some continuity and financial security in the event of your passing. You could use life insurance to cover your 澳洲幸运5开奖号码历史查询:final expenses and leave an inheritance.

Keep in mind that you might also wish to consider taking out a life insurance policy for elderly relatives in your family as well. For instance, middle-aged individuals may look to buy life insurance for their parents as they reach an advanced age. You will need their permission to take out a policy on their lives.

Deciding Between Term Life vs. Permanent Life

If you’ve decided🎉 on th🌳e best time to buy life insurance for your family, the next step will be determining which type of policy to choose. The two primary types of life insurance are term and permanent life insurance.

Term Life Insurance

In short, 澳洲幸运5开奖号码历史查询:term life insurance is coverage for a specified (and limited) amount of time, either for a set number of years or until the insured individual reaches a specified age. Term life insurance charges the same premium during this period. If that person dies within the term while the life insurance policy is active, the provider will pay the death benefit to the beneficiary named in the policy. However, theಞ coverage expires if the insured does not die by the time the te𝕴rm limit is reached. 

Term life insurance policies may have the benefit of 澳洲幸运5开奖号码历史查询:renewability, meaning that the policyholder can extend the policy at the end of the term without a medical exam. The policyholder will need to pay more expensive premiums to renew at an older age. However, they won’t be denied coverage for a medical condition. Some term policies also have the benefit of 澳洲幸运5开奖号码历史查询:convertibility, meaning they can be converted into a permanent policy without an additional medical exam.

Term life insurance policies start out considerably less expensive than permanent life insurance policies. They can make sense for buying a large amount of coverage for a temporary need, like raising young꧋ children or covering a mortgage. 

Permanent Life Insurance

澳洲幸运5开奖号码历史查询:Permanent life insurance unlike term, is designed to remain in effect for the insured individual’s entire life as long as premium pay🐼ments are maintained. 

The benefit to buying a permanent life policy while young is that you can lock in lower premiums for the rest of your life. For example, you could buy a permanent whole life poli𝕴cy that locks in the same premiums. Prices do no💮t go up as you get older like they do with term life insurance.

Another benefit of permanent life insurance is the cash value element. A portion of premium payments goes to this cash value, which is typically set aside in a separate account. Cash value can provide many benefits to a policyholder. For example, he or she can take out loans against the accumulated cash value in some cases, or even receive dividends from the insurance provider. That provides extra money for emergencies, retirement, college expenses, and other go🎐als.

There are several versions of permanent life insurance with different setups for premiums and cash value growth, including whole life, 澳洲幸运5开奖号码历史查询:universal life, and 澳洲幸运5开奖号码历史查询:variable life. Permanent life insurance can make sense for needs that last your entire life, like final expenses or leaving an inheritance. Permanent l♓ife also could make sense if you have extra money in your budget and would like to use your policy to build wealth on top of the death benefit.

Your decision about pursuing term or permanent 💟life insurance will depend upon your age, health, long-term family plans, ability to make premium payments, and goals. Be sure to shop around and get quotes from mu🥃ltiple providers, and keep in mind that the specific terms of life insurance policies can vary greatly from one provider to the next.

The Bottom Line

Like other types of insurance, life insurance 🅰is a way for individuals to pool risk with others. By paying a comparably small regular premium, an insured individual will have a claim to a much larger death benefit to be paid if they should die while covered by the policy. Life insurance benefits can be essential for families that have unexpectedly lost a loved one—these benefits may help to pay for everything from funeral costs to housing to new childcare as another family member goes to work, for example.

For most people, taking out a life insurance policy while young may lead to lower premiums. As the insured individual gets older and faces increased health concerns, policy premiums tend to rise. It may become especially important to consider life insurance at major life milestones such as marriage, the birth of a child, or when you buy a home. It’s also good practice to regularly review your life insurance policy and to update it periodically as needed or when there are significant changes in your family, such as when an adult child moves out of the home.