CHAMPAIGN, IL (Chambana Today) – We all know it is important to have car, renters, and homeowners’ insurance, but what about life insurance? It’s a type of insurance that is crucial to have, but for many reasons we put it off or avoid it completely. When is the perfect time or age to buy life insurance? According to Michael Rumsey at Farmers Insurance, the best time is right now.
While this may seem overly simplistic, some life insurance policies should be acquired early in life as they provide living benefits, savings, tax advantages, and other perks. The first and most critical variable is the timing of your purchase. The premium you pay is largely determined by a snapshot of you when you buy the policy – your current age, health, gender, employment type, hobbies, and more. For example, if you’re a 45-year-old man in good health, who works in an office and avoids high-risk activities, your premium will reflect these favorable conditions. However, if you smoke, have a few extra pounds, and engage in dangerous hobbies like cliff jumping, your premium will be higher.
Once you accept the premium and the policy is active, it doesn’t fluctuate based on future changes in your health, occupation, or hobbies. Consequently, the ideal time to buy life insurance is when you are young, healthy, and present the lowest risk. This timing will generally afford you the lowest premiums.
As we age, we are more likely to develop health conditions or sustain injuries. The best time to lock in a life insurance policy is when you are at your healthiest and youngest. However, there’s a caveat. If you buy life insurance in your youth, you’ll be paying premiums for a longer period assuming you live a long life. This raises the question: Does it make more financial sense to pay lower premiums for a longer period or higher premiums for a shorter duration? This is where the complexity of deciding the best time to buy comes into play – which is why it’s important to talk to an insurance agent.
With a clear understanding of your needs and the available options, you’ll be well-equipped to find the life insurance policy that suits you best. Talk to Michael Rumsey at Farmers Insurance for a comprehensive review of all your insurance policies.