On your long list of to-dos, getting life insurance might be at the bottom, even when you know it's an important financial safeguard for your family.
How to determine the right time to buy life insurance
While there is no wrong time to buy life insurance, the sooner you purchase a policy, the better. The older you are, the higher the premiums will likely be. Additionally, some life events and situations (weddings, children, a new home, etc.) may make the need for life insurance even more immediate.
Consider these major milestones to evaluate if life insurance is for you.
Behind the “why”: Life insurance milestones
Life Milestone | Primary Financial Protection | Long-Term Benefit |
|---|---|---|
Partnership/Marriage | Income replacement for your partner. | Maintains lifestyle and pays joint debts. |
New Homeownership | Mortgage and property tax coverage. | Prevents foreclosure or forced relocation. |
Parenthood | Funding for childcare and education. | Secures future tuition and daily care costs. |
Managing Debt | Protection against co-assigned loans. | Shields beneficiaries from creditors. |
Do you have a significant other?
Whether you're married, planning to get married or have a partner that would be impacted by your absence, life insurance is a good way to help your partner maintain financial stability if you die. Life insurance can enable your partner to make mortgage payments, afford daily expenses, contribute to retirement and more.
Some life events and situations (weddings, children, a new home, etc.) may make the need for life insurance even more immediate.
Do you have children?
Kids can be a major motivator for purchasing life insurance: Raising children is expensive. In your absence, life insurance can help pay for childcare and other future expenses like college, helping to ensure your children are taken care of.
Are you a homeowner?
Unfortunately, in the event of your death, your mortgage, real estate taxes, property insurance, maintenance and utilities will still need to be paid. Life insurance can help relieve that burden for your partner or whomever those expenses might fall on after you're gone.
Do you have debt?
Outstanding college loans, credit cards and other types of debt can also become a financial strain for your loved ones in the event of your death. A life insurance policy can help protect your beneficiaries from this potential hardship.
How age plays a role in life insurance
Even if you answer no to all of these questions, it may still be wise to get life insurance now. Regardless of all other factors, the younger you are, the lower your premiums will typically be. Use Ladder's life insurance coverage calculator to see the impact waiting to buy life insurance could have on your premium. Your future self will thank you for locking in a lower premium now.
Move life insurance to the top of your to-do list
While you're busy living your life, don't forget to help protect those who depend on you. Life insurance is a simple and effective way to help provide for your loved ones in your absence. Start planning now to lock in a lower rate today and help look after your family's tomorrow.
Disclosures: Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers – for further details see www.ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.
