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Life insurance is a fundamental part of sound financial planning. Whether you're a young person just getting started in their career, a husband or wife whose spouse depends on them or even a senior looking for an inheritance to leave beneficiaries, life insurance is often valuable to have.
But like most financial products and services, it's important to get the timing right. If you don't buy life insurance at the most opportune time you could risk paying significantly more than you normally would have. You could also risk full coverage rejection. So if you want to get the most out of a plan - and don't want to break the bank to do so - it's generally advisable to act quickly.
You can start by getting a free price quote so you know exactly what to expect.
2 major reasons to buy life insurance quickly
Here are two major reasons why you shouldn't wait to get a life insurance policy.
Simply put: the younger you are the more likely you are to secure a low-cost policy. As you age your health issues may increase, making you riskier to insure. That risk is passed on to policyholders in the form of a higher monthly premium (assuming coverage is approved at all).
However, if you act now when you're as young as you ever will be, you can put yourself in the running for cheap life insurance.
"One of the main things that affects the price of life insurance coverage is the age of the person taking out the policy," life insurer Haven Life explains. "As your age increases, so does the price you'll pay to buy a life insurance policy."
By reviewing the costs of a life insurance policy when compared against age, the trajectory is only pointed upward. So it's important to act quickly.
This doesn't mean, however, that only young people should buy life insurance. Older people can benefit from a policy as well. Just understand that no matter your age, a term life insurance policy will cost more if you apply next year at this time than it would if you applied now. And if you wait multiple years a policy price tag could increase exponentially.
Get started with a free price estimate now so you know exactly how much it will cost you.
Accidents could occur
No one likes to think of their own mortality but when it comes to life insurance you'll be forced to. Remember the primary benefit of having life insurance: to protect your beneficiaries in the event of your death. While we all want to live long, healthy lives it may not always be possible. Unfortunately, you never know when an accident could occur.
For policyholders that have dependents (think parents to young children) or for homeowners with a significant amount of debt to pay off, it's helpful to think about what could happen in your absence. If you have enough cash so that your family can continue to support themselves without your income, then you may be able to skip out on life insurance. Similarly, if you only have a year or two left on your mortgage, it may not be worth it.
But for the vast majority of Americans life insurance is worth having as a backup should the worst occur. It may not be pleasant to think about but by securing a policy now you can have peace of mind knowing that your loved ones will be protected no matter what happens.
The bottom line
Life insurance is a vital financial protection that's typically well worth paying for. But because of its importance, it's critical to buy it quickly. By applying for a policy now you'll position yourself for lower premiums - and you'll rest easier knowing that your beneficiaries are covered should any accidents occur.
Get started with a free price quote now.
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