When Should I Get a Life Insurance Policy?

Everyone goes through a different process as they decide when to purchase life insurance. In most cases, you'll need life insurance if you have people who depend on you financially. Because these circumstances don't have an age requirement, there's no "right" time to purchase life insurance.

Purchasing Life Insurance in Your 20s

The younger and healthier you are, the cheaper your life insurance will be. As you age, you become more vulnerable to health issues, which often increases the cost of coverage. Again, deciding whether or not to purchase life insurance has less to do with age and more to do with circumstance. If you have children, a spouse, co-signed debts, or want to ensure your family won’t be stuck with funeral bills, purchasing a life insurance policy could be a good idea regardless of your age.

When to Buy Term Insurance vs. Permanent Life Insurance

Depending on your budget and financial goals, you can decide whether term insurance or permanent life insurance is a better fit.

Term Insurance

Term life insurance covers you for as long as the policy lasts. This type of policy is more affordable, you should also consider how long other people will depend on you. Your term of policy should last as long as you expect your dependents to rely on your income.

Permanent Life Insurance

Permanent life insurance offers protection that will last your lifetime. While term insurance provides benefits for younger buyers because of its flexibility, permanent life insurance has its own set of benefits. If you purchase a permanent policy at an early age, you can accumulate more long-term value because the price of the premium is fixed for the entire duration of the policy. If you hold the policy for a long enough time, the money you accumulate may be able to go toward your retirement.

No matter your age or circumstances, deciding when and what kind of life insurance to purchase is a big decision. Let the experts at Insurance Lounge guide you along this journey. In addition to our online Insurance Concierges®, we have four retail locations across Oregon where our agents can offer you advice on which type of life insurance to choose. Before you stop by one of our storefronts, get a free quote online so you can go into the conversation with more information.