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When should you really buy life insurance?

The most common misconception about life insurance is that you only need it when you are close to retirement. Well, that kind of thinking can mean a world of hurt for your wallet! The truth is the importance of life insurance evolves as you go through life; each milestone and life event will affect what you want out of your life coverage.

So let’s break down what shopping for life insurance looks like in each stage of life:

Buying a Life Insurance Policy in Your 20s

Your 20s are the best time to purchase a life insurance policy because you are in prime health. Your risk of contracting a life-impairing illness is statistically at its lowest, which means you have a better chance of getting lower rates on policies.

If you’re not ready to commit to a whole life insurance policy (which will cover you until the very end), try investing in a term life policy that will keep you covered for a set period of time! This is a great option for young people who are uncertain of where life will take them next. The type of work you do can also affect which term policy you should consider! Take a civil engineering position: the work can be extremely exhausting and sometimes dangerous, so you might want to consider taking out a longer term life insurance policy.

Say you are a 25-year-old civil engineer that works on several off-site construction projects - because of the highly exhausting and sometimes dangerous nature of your job, you may wish to consider taking out a 20-year term life insurance policy.

Buying a Life Insurance Policy in Your 30s

Your 30s are the most “opportune time for you to further build and strengthen the insurance investments you have made in your 20s.” (

By this time in your life, you are more likely to have a small family. This means you’ll have more things to insure like your house, cars, school tuition, etc. Your focus will shift from yourself to maintaining your family’s comfort, and your life policy should reflect that!

If you’re shopping for a new policy, luckily life insurance still has a reasonable price tag! Partner that with a clean bill of health for you and your spouse, you should be primed to receive some fair estimates. If you want more coverage, you can also take out more insurance policies. This could be hugely beneficial if you have children, because you can amass a substantial coverage amount that is “six to ten times your annual income” ( Honestly, this can be one of the safest ways to protect your children against inflation.

Buying a Life Insurance Policy in Your 40s

It is not too late to purchase a life insurance policy in your 40s! A great place to start is by asking if your company offers life policies as part of your benefits and figuring out how to pair that with additional coverage. You might still consider shopping for additional policies if in fact your work’s policy is not enough to cover all of your family’s needs.

Term life policies are still an option, but at this stage in the game you might get more out of a whole life insurance policy. Whole life policies offer features like fixed premium fees, additional earnings from dividends, and cash value accrual.

Buying a Life Insurance Policy in Your 50s

By this stage, you are probably dreaming of retirement and only have the best years ahead of you! You should understand that getting life insurance at this age means premiums are going to be more expensive, but it is still possible to find a thorough policy!

This age is where you can consider a term life policy, probably around 30 years or so, since it can be the most cost-effective. If you know you are going to outlive your term life policy, you might consider converting it to a universal life insurance policy and taking advantage of its cash value component!

We know that shopping for life insurance policies is not how you want to spend your free time, especially when each policy comes with its own special terms and confusing language. If you want some help, let us know! We’d be glad to work with you to find customized coverage specific to your needs. Did this article inspire you to look into life insurance? Let us know!

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