How do you know when it’s time to purchase a life insurance policy?
Despite what you may have heard, there’s no hard rule about when to secure life insurance. Some experts recommend getting a policy as soon as possible while others argue that you only need this coverage once you are established and have a family to support. Ultimately, choosing to get life insurance is a personal decision based on individual considerations. If you are still feeling unsure, here are some things you need to consider about when to get life insurance coverage.
Waiting Could Cost You
When you go to secure life insurance, your insurer will take several factors into account as they calculate your premiums. Two of the most influential factors are your age and relative health. Generally speaking, the younger and healthier you are, the lower your rates will be. Insurance companies tend to set higher premiums for older applicants, even if they are in good health. This is because older individuals are at a higher risk for developing a severe medical or life-threatening condition. This increased risk translates into higher insurance costs. So, if you want to save on your life insurance, you are better off securing a policy sooner rather than later.
Your Debts Could Harm Your Loved Ones
When you die, your outstanding debts do not just magically disappear. Unfortunately, they often become the responsibility of your family members. As the combined cost of your student loans, credit card debt, car payments, etc. can be staggering, your debts could have a severe impact on the financial stability of your loved ones. If you do not want to leave your family vulnerable to this risk, it’s important to secure a life insurance policy that offers enough coverage to pay off all your existing debts. While your death will inevitably cause your loved ones pain, having the right life insurance will ensure that financial concerns do not add to their grief.
These are some of the things you should consider when deciding when to secure life insurance coverage. Ready to find the right policy to fit your lifestyle and our budget? If so, contact the professionals at Patterson & Associates in Richardson, Texas. We are ready to assist you with all your personal insurance needs today.