When Should I Get Life Insurance?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding the Right Time for Life Insurance

Life insurance is an essential part of financial planning, ensuring the security and peace of mind for your loved ones in the event of your passing. However, determining the right time to get life insurance can be challenging. Let’s explore the ideal times to consider purchasing a policy based on different life stages and circumstances.

Early Adulthood (20s to 30s)

  • Lower Premiums: Life insurance premiums are generally lower when you are young and healthy, making this an optimal time to lock in affordable rates.
  • Future Planning: Securing a policy early can ensure coverage as you age, regardless of future health changes.
  • Financial Dependents: Even if you don’t have dependents now, planning for future responsibilities such as marriage or children makes early adulthood a strategic time to secure a policy.

Mid-Life (30s to 50s)

  • Family Responsibilities: This stage often includes significant financial commitments like a mortgage, children, and other dependents. Life insurance ensures their financial stability.
  • Career and Income: Higher income levels during mid-life can justify larger coverage amounts to protect your family’s standard of living.

Pre-Retirement (50s to 60s)

  • Health Changes: Health conditions may develop, potentially increasing premiums. Securing a policy before these changes occur can save money.
  • Financial Stability: Evaluating your savings, investments, and retirement plans can help determine whether additional coverage is needed to secure your future.

Retirement and Beyond (60s and Older)

  • Legacy Planning: Focus shifts from income replacement to estate planning and leaving a legacy.
  • Final Expenses: Coverage for final expenses, such as funeral costs, can relieve your family of financial stress.

Special Circumstances

  • Marriage: Combining finances and securing your spouse’s future.
  • Children: Ensuring their education and future expenses are covered.
  • Homeownership: Protecting against the financial impact of a mortgage.
  • Career Changes: Adjusting coverage to reflect new income levels or job benefits.

How We Can Help

At The Annuity Expert, we understand that determining the right time to purchase life insurance can be overwhelming. Our core mission is to simplify this decision and ensure your and your loved ones’ financial protection.

Core Problem The main problem we solve is the uncertainty and confusion surrounding when and why to purchase life insurance. This uncertainty can lead to delayed decisions, resulting in higher premiums or lack of coverage when it’s most needed.

Symptoms and Emotional Impact

  • Procrastination: Many people delay purchasing life insurance due to confusion or perceived complexity, which can lead to higher costs later.
  • Stress: The lack of clear guidance on when to buy life insurance can cause significant stress and anxiety.
  • Financial Insecurity: Without timely life insurance, families may face financial hardship in the event of an untimely death.

With over 15 years of experience as an insurance agency, annuity broker, and retirement planner, we stand by our commitment to finding the best solution at the lowest costs for our clients. We believe in providing clear, actionable advice that aligns with your financial goals.

What We Recommend

Step 1: Schedule a Consultation

  • First Step: Contact us to schedule a free consultation.
  • What Happens: During this session, we will assess your current financial situation, future goals, and potential risks.
  • Main Benefit: You’ll gain a clear understanding of your life insurance needs and the best options available.

Step 2: Personalized Policy Selection

  • What We Do: Based on the initial consultation, we’ll recommend tailored life insurance policies that fit your specific needs and budget.
  • What Happens: We’ll explain the features and benefits of each policy to ensure you make an informed decision.
  • Main Benefit: Confidence in choosing the right coverage that provides maximum protection at an affordable cost.

Step 3: Ongoing Support and Review

  • What We Do: We offer continuous support and periodic reviews of your life insurance policy.
  • What Happens: As your life circumstances change, we’ll help adjust your coverage to ensure it remains relevant and beneficial.
  • Main Benefit: Long-term peace of mind knowing your life insurance adapts to your evolving needs.

Features and Benefits

  • Feature 1: Comprehensive Policy Options
    • Benefit: Ensures you find the perfect coverage tailored to your needs.
  • Feature 2: Expert Advice
    • Benefit: Receive guidance from seasoned professionals, reducing confusion and stress.
  • Feature 3: Competitive Rates
    • Benefit: Access to the best life insurance rates, saving you money.
  • Feature 4: Ongoing Support
    • Benefit: Continuous policy reviews and adjustments to match your life changes.
  • Feature 5: Simplified Process
    • Benefit: Easy and straightforward application process, saving you time and effort.

Addressing Common Objections

  • Objection: “I don’t need life insurance now; I’m young and healthy.”
    • Counter-Argument: Securing a policy now locks in lower premiums and guarantees coverage regardless of future health changes.
  • Objection:Life insurance is too expensive.”
    • Counter-Argument: We offer competitive rates and a variety of options to fit any budget, making life insurance more affordable than you might think.
  • Objection: “I don’t understand life insurance.”
    • Counter-Argument: Our experts simplify the process and provide clear, actionable advice to help you understand your options.

Without our guidance, you risk higher premiums, inadequate coverage, and financial instability for your loved ones. By working with us, you’ll enjoy peace of mind, financial security, and confidence in your financial future. You’ll experience relief from anxiety, satisfaction in knowing you’ve made a wise decision, and the assurance that your loved ones are protected.

Contact us today for free advice or a free quote and take the first step towards securing your financial future.

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Frequently Asked Questions

What age group buys the most life insurance?

Young adults aged 18 to 34 are the most likely to buy life insurance, followed by 35- to 44-year-olds. This may be because young adults are starting families and want to ensure their loved ones are cared for financially if they die prematurely. However, middle-aged adults are also more likely to purchase life insurance, as they may seek financial security for their families in retirement.

How many adults have no life insurance?

44% of American adults do not have life insurance, according to the 2019 Insurance Barometer Study by Life Happens and LIMRA. This is up from 39% in 2018. The study found that 22% of respondents thought life insurance was too expensive, and 19% said they didn’t think they needed it. In addition, 14% said they didn’t know enough about life insurance to decide, and 11% said they thought it was too complicated.

When should I get life insurance, and at what age should I get life insurance?

As we age, underlying health conditions become increasingly common, devastatingly impacting mortality rates and life insurance premiums. Some say if you purchase term life insurance at age 20, that is the best age for life insurance; the cost is likely cheaper than if you wait until 40, but waiting until 60 will bring an even more significant expense.

The average age of life insurance buyer

The average age to get life insurance is usually 30; most people consider investing in a life insurance policy. It could be because they are starting or already have a family with either one small child or several kids. This is understandable – after all, no parent wants to think about what would happen if anything ever happened to them and left their children without financial security.

Who buys life insurance policies?

Life insurance provides people peace of mind, especially when family breadwinners pass away and cannot provide for their dependents—such as spouses, children, or elderly parents. With life insurance, they can rest assured knowing that these future financial needs will be met.

Do people usually buy life insurance?

Limiting financial risk is a priority for many, and LIMRA’s 2022 Insurance Barometer Study reveals that 53% of the US population has life insurance coverage. Additionally, the study found an increase in early 2021 over 2020, showing more people are taking steps to protect their families from future hardship.

Who buys old insurance policies?

Life insurance policies can be sold directly to providers using a broker who will present your policy to multiple providers. Choosing the latter option may significantly increase the sale value of your policy. In addition, submitting individual applications for each provider is only required when selling directly – working with a broker eliminates this step.

What’s the best age to get life insurance?

The best age to get life insurance depends on individual circumstances. Getting it when you are young and healthy can lock in lower premiums while getting it later in life can still provide financial protection for your loved ones.

Is life insurance worth it in your 20s?

Yes, life insurance can be worth it in your 20s, especially if you have dependents or financial obligations. Getting life insurance at a younger age can lock in lower premiums and better coverage options, providing financial protection for your loved ones in case of your unexpected death.

What age does life insurance make sense?

Life insurance makes sense at any age when you have dependents or financial obligations that would leave them financially vulnerable in case of your unexpected death. The right age to get life insurance varies based on age, health status, family obligations, and financial situation. However, getting life insurance earlier can help you lock in lower premiums and better coverage options.

How do I know if I need life insurance?

You may need life insurance if you have dependents, outstanding debts, significant assets, or a partner struggling financially without your support.

What are the benefits of getting life insurance at a young age?

Getting life insurance at a young age can provide lower premiums, better coverage, financial protection, peace of mind, and future insurability.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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