At What Age Should Someone Consider Purchasing Life Insurance?

At what age should someone consider purchasing life insurance? The younger the insured is when the policy is taken out, the less he will have to pay in premiums. Though most life insurance companies would...

Though most life insurance companies would not want the word to get out, not everyone really needs life insurance. There are many different factors for determining if you should purchase life insurance. If you are a single person with no children and do not own a home then a life insurance policy probably does not make sense for you. There really would not be anyone or anything you would want to take care of in the event of your death unless you have a family member that could use the help. Another factor to consider is your age. The age you are when you purchase your life insurance policy can have different benefits and drawbacks.

Joe Sostarich, a 26-year veteran of life insurance sales and management says, "The younger the insured is when the policy is taken out, the less he will have to pay in premiums." Because you are less likely to die when you are younger, the risk to the insurance company is lessened and therefore you will have cheaper premiums. While cheaper premiums are nice, younger people usually do not have as many obligations as far as homes, businesses, or families. The reason the premiums are cheap is that you don't really need the insurance as much when you are young. On the other hand, when people die young it is usually a greater shock to the family and they may be more unprepared for an event such as this. If you have a family and/or a home, a life insurance policy should be purchased as soon as possible. People who apply for life insurance when they are young are also less likely to be rated or turned down due to health issues.

On the flip side, if you purchase a term life insurance while you are in your 20's or 30's, your policy will be ending at exactly the time when it will be starting to get more difficult to get a policy without being rated. When you need to purchase a new policy at the end of your term you could run into problems. Joe says, "The older you become, the more health issues you will likely have." Things such as heart conditions, high cholesterol, and diabetes, usually show up as you get older. It is more difficult to obtain a life insurance policy with these conditions and if you are able to get one it is usually at a much higher premium. Some term life insurance policies may be renewed at the end of their term but there could be certain conditions and rate increases that apply.

If you want to purchase a life insurance policy when you are young without worrying about the policy term ending while you are in your older years you might consider a whole life or permanent policy. The premiums for whole life are more expensive but you will be contributing to a cash value that can continue to grow and be borrowed against in the future. The premiums will be the same for your entire life so it can be a good time to buy this type of policy since premiums get higher as you get older.

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