Having read about the benefits of owning life insurance, you may be asking yourself “When is the right time to buy life insurance?”’ The simple answer to that question is when you are young and healthy. If you are no longer young and at the prime of your health, the best time to pay for life insurance is NOW!
Below we will explain why the best time to buy life insurance is when you are young;
Uncertainty of life
It is essential to pay for life insurance when young because of the inability to predict your time of death in most cases. Even if you do not have dependents, your life insurance payout can pay for funeral costs. If you have dependents your possession of life insurance protects them from financial instability if you die.
If you purchase life insurance (permanent or term) while you are young and healthy, the premium you will pay will be more affordable. However, if you wait until you are older or possible have ill health, the premium increases dramatically.
The earlier you purchase life insurance, the higher your chances of receiving an affordable and overall favorable insurance deal. If you wait until terminally ill, it becomes harder to find a life insurance provider to provide coverage. Life insurance companies reserve the right to deny life insurance coverage to unhealthy people.
Growth of cash value
The earlier you start paying insurance premiums, the longer the time for the accumulation of cash value available to you if the need for it arises. Furthermore, your cash value is accumulated tax-free, this is increasingly beneficial if you wish to invest your available cash value. It can also be used to take a bank loan or start a business.