Is there really a better time to get life insurance? There are many myths surrounding age and life insurance policies. Here's a look at the truths to help you find the best age to get your life insurance.
The Younger the Better
The short answer to the question is "the younger the better." Rates are lower for those who are younger because there is a lower chance of the company paying out. You have a lower risk of dying from illness or disease.
This applies to both term and universal life insurance. For example, a 20-year-old buying a 10-year $250,000 policy is likely to pay around $9.63 per month, but someone who is 40 will pay around $11.70 per month.
It Depends on the Payout
Before you start panicking that you've left it too late, it will also depend on the amount that you want your policy to payout if you do die. For example, a 30-year-old with a 10-year $500,000 policy will pay around $14.05 per month, which is more than a 40-year-old will pay for the $250,000 policy.
If you can reduce your policy amount, you can reduce your premiums. Even though the risk is higher, the company won't need to pay as much.
Buying in Your 20s Is Easier
While all this is the case, there's no doubt that paying in your 20s is going to be easier than any other time. You may find that you don't need to go for medicals, because the insurance provider views you with a lower risk.
The problem is your needs will be extremely different to someone who is older. You may not have a family or mortgage to cover. As you start your family, the policy may no longer suit your needs. However, you could always get a short term policy and then re-evaluate your needs in the future.
Do It Before You Turn 50
The worst thing you can do is leave your life insurance buying until you turn 50. From 50 the prices for insurance policies increase significantly. Once you get into your 60s, you can end up paying hundreds of dollars a month for a policy that you paid less than $10 for in your 20s. When you turn 80, you can find it extremely difficult to get reasonable life insurance.
The earlier the better when it comes to buying life insurance. If you haven't done it yet, make some serious considerations to get it as soon as possible. This will help to keep the cost down. Contact a company like Daniel L. Rust Insurance for more information.