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- You’ll likely need life insurance eventually, so financial planners say there’s no reason to wait.
- It’s cheaper when you’re younger, and can always be changed as your plans change.
- Having it brings peace of mind — there’s no reason to wait around for that.
- Policygenius can help you compare life insurance policies to find the right coverage for you, at the right price »
Whatever stage of life you’re in, there’s a good chance that you need life insurance.
Whether you own a home, have a child, have lots of debt, or a family that depends on your income, life insurance can help make sure they’re taken care of if you die suddenly.
While life insurance isn’t something many people like to think about, it’s just as important or saving or investing for your financial planning. If you’re toying with the idea of getting a life insurance policy, there are some good reasons to go ahead and spring for it now rather than wait.
1. If your needs change, you can always add another policy for more coverage
Even if you’re not able to change your coverage, you may be able to take out another policy later on, writes financial planner Jeff Rose. In his own experience, he used several different policies to total the full amount he felt he needed, adding more as his needs changed.
When he was in his 20s, he used a temporary, $400,000 policy that was available to him through the military. When that policy ended, he bought a $250,000 term life policy that would at least cover his mortgage after he and his wife bought their first home. Later, he added a $500,000 policy after his first child was born. Later on, he combined the two policies as his family kept growing, and added more coverage.
With some policies, there can be room for change. For example, some term life insurance policies can be changed within a certain window to permanent life insurance, where cash value accumulates and there’s a guaranteed payout. Additionally, some policies allow you to increase your coverage amount later on as your needs and budget change.
While it might seem like you have to get the exact right amount the first time, that’s not always the case. There’s some flexibility to make the coverage fit your needs in the future (just make sure you ask before you buy). And, it might be better to get started sooner rather than later.
2. You can get a lower rate
Life insurance is generally cheaper when you’re younger. The younger you are when you get the policy, the lower each monthly payment will be.
Rose writes that one of the reasons he sprung for the $500,000 coverage was exactly this. “I was young and in good health, and was approved ‘preferred plus’ by the insurance company,” he writes. Not only did it make it easier to get coverage, it also brought down the cost.
Getting life insurance sooner rather than later could add up to some significant savings. For a term life insurance policy, the amount you’ll pay increases a few dollars per month with every five years you wait. While a 25-year-old female in excellent health will pay an average of $18.59 per month for a policy, a 30-year-old female would pay $19.79 per month for the same policy, and a 35 year old would pay $22.95 per month, according to data gathered by Insider.
When you’re younger, you’re likely to have fewer health problems to stand in your way, and fewer factors that would increase the price. Waiting only increases it.
3. It offers peace of mind
Financial planner Eric Roberge got life insurance when he was younger, even though some people said he didn’t need it. He and his partner don’t have any children, and they both work. While they own a home and a business together, he bought life insurance as an extra protection for his wife, and for his own peace of mind.
“Kali is 30 years old, and even though she would have our assets to rely on, she would need to make significant changes to her lifestyle to make them last from now until her elder years,” he wrote. “It provided me with peace of mind to get a life insurance policy that guaranteed she would be financially secure.”
While some may think he doesn’t need it, having the coverage in place makes him feel sure that his wife will always be secure. And, there’s no reason to put off having peace of mind.
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