Life insurance is a cost-efficient way to financially protect your loved ones. Unfortunately, many people delay this important decision which can lead to higher premiums or even denial of coverage.
In this post, we’ll share why you shouldn’t wait to buy life insurance and how you can get the best price.
5 Reasons Why You Shouldn’t Wait
When it comes to life insurance, planning ahead is crucial. You can’t protect your family after you’re gone. Here are five reasons why you need to stop putting off buying life insurance.
1. Your Age Impacts Life Insurance Premiums
One of the main factors in determining the cost of life insurance is your age. The primary goal of life insurance is to provide financial support in case of your death, by replacing your income.
Therefore, if there’s a higher chance that you may die sooner rather than later, the insurance company carries higher risk by insuring you. To compensate for this increased risk, your cost of coverage is higher.
Example:
Suppose a healthy, non-smoking 30-year-old man wants to purchase a 20-year term life insurance policy with a $500,000 coverage amount. The monthly premium could be as low as $19.
However, if he decides to wait and applies for the same policy at age 40, assuming his health remains unchanged, the monthly premium would increase to $28. Although $28 is still a reasonable price for the financial security life insurance provides, it represents a significant increase in cost.
| Monthly Quotes for $500K 20-Year Term for Healthy, Non-Smokers | ||
|---|---|---|
| Age | Male | Female |
| 25 | $18.41 | $14.86 |
| 30 | $18.83 | $15.16 |
| 35 | $20.21 | $17.26 |
| 40 | $28.42 | $24.00 |
| 45 | $42.45 | $35.98 |
| 50 | $69.47 | $54.52 |
| 55 | $112.60 | $82.76 |
| 60 | $200.67 | $140.51 |
| 65 | $380.19 | $254.34 |
When you buy term or whole life insurance, you lock in your rate. Referring to the table above, if you’re a 40-year-old woman and get approved for a 20-year $500,000 term life insurance policy at $24 per month, your rate remains unchanged for the next 20 years—even if you develop a serious medical condition.
How old is too old for life insurance? How much will it cost if you wait? Learn more your policy options and what you could pay.
2. Your Health and Lifestyle Impacts Life Insurance Premiums
Two other major factors that affect the cost of life insurance are your health and lifestyle. For healthy individuals with a low risk of dying soon and a lifestyle that doesn’t involve high-risk activities, insurance premiums are generally lower. Life insurance companies increase premiums when insuring applicants with health conditions or lifestyles that pose higher risks.
Example 1
Sarah, a non-smoker and avid runner, purchased a life insurance policy at age 30. As a healthy individual with a low-risk lifestyle, she secured a favorable premium rate.
Five years later, Sarah was diagnosed with breast cancer. However, because she had already locked in her low rates, her life insurance policy remained unaffected, providing financial security for her family.
Example 2
At age 35, Tom, a skydiving enthusiast, decided to buy life insurance. Due to his high-risk hobby, his premium rates were higher than average. His friend, Mike, also 35 but without any high-risk hobbies, purchased a policy at the same time and secured lower rates.
After some time, Mike decided to join Tom in skydiving. However, since Mike’s life insurance rates were already locked in when he initially purchased the policy, his rates didn’t change despite taking up the high-risk hobby.
If Tom had bought the policy before taking up skydiving, he would have enjoyed lower rates as well.
See what you’d pay for life insurance
3. Better to Be Insured and Not Need it, Than to Need it and Be Uninsured
Take a second to think about the concept of auto insurance. It’s legally required primarily to protect drivers, passengers, and others on the road from the financial consequences of accidents.
You buy car insurance hoping you don’t have to use it. Term life insurance is similar and even more crucial.
Certainly, if your car gets rear-ended and goes in for repairs, asking a coworker for a ride to work for a week might be inconvenient. However, imagine the immense challenge your family would face if they suddenly lost you and had to find a way to compensate for the missing income. That’s a far greater concern than mere inconvenience.
4. You’re Responsible for Your Loved Ones’ Financial Security
As a provider of your family, it’s crucial to consider the financial well-being of your dependents and loved ones.
Key responsibilities covered by life insurance:
- Replace lost income: As the primary income earner, it’s your responsibility to ensure your family’s financial stability. Life insurance helps replace the income that would be lost upon your death, providing your loved ones with the necessary financial support.
- Pay off debts: Outstanding debts, such as a mortgage, car loans, or credit card balances, can become a significant burden for your family after your passing. Life insurance allows them to pay off these debts and alleviate financial stress during a difficult time.
- Cover children’s education costs: Providing your children with a quality education is a top priority for many parents. Life insurance ensures that their education expenses are covered, allowing them to pursue their dreams and secure a brighter future.
5. Buying Life Insurance Has Never Been Easier
In today’s fast-paced world, convenience and simplicity are highly valued. Fortunately, getting life insurance has become more accessible than ever before, making it even easier for you to secure your loved ones’ financial future.
Here’s how Quotacy can help:
- Online quotes and applications: You can easily obtain life insurance quotes and submit an application from the comfort of your home. Here on Quotacy, you can compare rates and policies from multiple providers, helping you make an informed decision without having to visit multiple websites, go into agent offices, or make numerous phone calls.
- Streamlined underwriting process: We work with insurance companies that have simplified the underwriting process, with some even offering accelerated underwriting for qualifying applicants. This means you can secure coverage faster, with fewer medical exams or paperwork, allowing you to quickly obtain the protection your family needs.
- Affordable coverage options: Life insurance premiums have become more competitive in recent years, and we help you find a variety of affordable options for individuals and families. With various policy types, term lengths, and coverage amounts available, you’re sure to find a plan that fits your budget and meets your financial goals.
- Comprehensive online resources: We offer a wealth of information, including educational, easy-to-follow articles and an online life insurance calculator, to help you understand life insurance and make informed decisions.
- Expert advice at your fingertips: Our team of experienced, non-commissioned agents work hard to find you coverage. With their assistance, you can buy with confidence knowing that you’re getting the right policy for your unique needs and situation.
There’s No Time Like the Present
Waiting to purchase life insurance can have significant consequences for you and your loved ones. Factors such as age, health, and lifestyle can impact your premiums, making it crucial to secure a policy sooner rather than later.
Have a medical condition that’s preventing you from applying? Let Quotacy help. Our expertise is life insurance matchmaking.
Not all life insurance companies underwrite in the same way. They have their own niches. Choosing the right insurance company is key in getting affordable coverage. After you apply, Quotacy will go to work for you and make sure you’re matched with the company that will provide the best rate based on your unique profile.
Life insurance provides financial security and peace of mind for your family, ensuring they can maintain their quality of life in the event of your passing. Don’t leave your family’s financial future to chance. Protect your loved ones today by securing the coverage they deserve. Get a term life insurance quote today.
Note: Life insurance quotes used in this article are accurate as of May 9, 2023. These are only estimates and your life insurance costs may be higher or lower.
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