Bible Money Matters

Christian personal finance

Menu
    • About
    • Archives
    • Contact
    • Close
  • Making Money
      • Popular Articles

        • 50 Ways To Make Money: Maximizing, Creating And Increasing Your Income
        • 10 Weird And Unconventional Ways To Make Money
        • Making Money With A Blog (e-Book)
        • 10 Places To Sell Or Trade Your Unused (Or Broken) Electronics
        • Ways To Make Extra Money Series: 20 More Income Generating Ideas From Our Readers
        • Making Side Income Can Help Blunt The Impact Of Becoming A One Income Family
        • Earn Cash Back With Discover it® Credit Card
      • Recent Articles – Making Money

        • Best Sites Like Fiverr To Make Money As A Freelancer
        • 13 Of The Best Independent Contractor Jobs
        • 25 Of The Best Gig Economy Jobs
        • How To Make Money Blogging: Turn A Blog Into A Business
      • Categories

        • Making Money
        • Investing
        • Retirement
        • Jobs & Work LIfe
        • Money
        • Income
    • Close
  • Saving Money
      • Popular Articles

        • 50 Easy Ways To Save Money Every Month
        • 10 Weird And Unconventional Ways To Save Money
        • 10 Practical Ways To Save Money And Increase Your Net Worth
        • How To Save Money On Just About All Of Your Regular Monthly Bills
        • Ways To Watch TV Without Paying An Arm And A Leg For Cable TV
        • Save Money On Your Hospital Bill - Just By Asking
      • Recent Articles – Saving Money

        • How To Save $100k In 7 Practical Steps
        • Stairs App Review: Save And Invest To Earn 4-6% Interest
        • Honey Review: Save Money Automatically When You Shop Online
        • 9 Convincing Reasons Why You Need An Emergency Fund
      • Categories

        • Saving Money
        • Frugality
        • Planning
        • Finance
        • Saving For Retirement
        • Savings Accounts
    • Close
  • Banking
      • Best Rates For 2019

        • Best Credit Cards
        • Best Savings Accounts
        • Best Mortgage Rates
        • Best CD Rates
        • Best Brokerages
        • Free Credit Scores
      • Recent Reviews

        • TradeStation Review: Commission Free Stock And ETF Trades
        • Firstrade Review: Commission Free Trades on Stocks, Crypto, And Options
        • Cadre Real Estate Investing Review: Commercial Real Estate Investing
        • Axos Self Directed Trading Review: Invest, Trade Stocks For Free
      • Categories

        • Bank & Software Reviews
        • Investing
        • Credit
        • Banking
        • Mortgage
        • Insurance
        • Family Budget
    • Close
  • Recommended
  • Video
    • Close

When Should I Buy A Life Insurance Policy? Should I Wait Until I Have Children Or Dependents?

By Jeff Rose 3 Comments - The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited May 15, 2019.

Share2
Pin
Tweet52
Share1
55 Shares

You may have read that you don’t need to buy life insurance early in life.

That’s not necessarily true.

In fact, getting a policy before mid-life may prove wise. Relatively few people opt for life insurance coverage between the ages of 18 and 45, yet there are compelling reasons to get life insurance within this window of time.

Quick Navigation

  • The Key Question
  • You’ve Got Your Health
  • The Cost Is Relatively Cheap
  • Why Would Young Singles Need Life Insurance?

The Key Question

The key question: Are you supporting individuals whose livelihood depends on your income? If the answer is yes, it’s time to look at life insurance.

Now, you may be saying: shouldn’t I wait to get a policy? Why should I pay premiums when I have so many other checks to write? Well, the reluctance is understandable: the perception is that life insurance is for old people, and when you’re 30 or 35, chances are you’ve got a long, great life ahead of you. But in financial terms, here is why this can be advantageous.

When to buy life insurance

You’ve Got Your Health

Typically, Americans shop for a life insurance policy in the middle of their life spans – when they are in their forties or fifties. At that time, they may have already fallen into the grip of bad habits (smoking, obesity, heavy drinking) and diabetes, heart disease, cancer or HIV may have entered their health picture. All these conditions can jack up premiums or make it harder to get a policy.

The Cost Is Relatively Cheap

Okay, maybe you won’t have to contend with any of the above health risks at 45 or 50, but who knows? Buying a term insurance or permanent cash value life policy early in life, before you have to encounter any of these problems, should allow you to pay less expensive premiums. (Presuming you don’t face recurring risks to your health and safety today.)

Did you know that premiums for standard-risk term life insurance fell 50% between 1994 and 2008? Premiums have been getting cheaper and cheaper for new term life policyholders, partly because the mortality rate has dropped over the decades. In fact, the non-profit Insurance Information Institute says term insurance premiums have fallen by more than 4% per year since 2000, and the premiums on cash value policies are averaging roughly 5% lower today compared to a decade ago.

Why Would Young Singles Need Life Insurance?

Good question. Some financial consultants will tell you there is no pressing reason for it. Yet if you are single, buying a term life insurance policy (or even a permanent life policy) early on could bring you a better deal and potentially guarantee your insurability. I have to admit that I did not do this. But I was fortunate to take out a term life policy early enough that the premiums were still very affordable.

Maybe it’s time. Time passes, things change, and so does your need for insurance. Even if you are insured, it’s important to keep up with change.  As an example, the Insurance Information Institute estimates that about a third of families don’t update their life insurance coverage after a new baby comes home. I’m an exception to this stat. Not only did I increase my insurance after having our first child, but I’m now increasing it again with the soon arrival of our second. I increased the amount dramatically so that I won’t have to worry about increasing premiums if we have another child.

If you’re young and you haven’t yet talked to a qualified insurance advisor, think about doing so today. You may be pleasantly surprised how affordable life insurance can be. Get a quote from the best life insurance companies today!

Editor’s note: Stay tuned for Monday’s post which will look at what different types of insurance are available

Related Posts

  • Term, Whole And Variable Life Insurance. Which Type Of Life Insurance Should I Buy?

    This is an article by Joe from JoeTaxpayer.com. Stop by his site and subscribe to his feed for more great articles! Insurance. Even saying this…

  • Why You May Want To Get A Life Insurance Policy Even If You Don’t Have Kids

    There are reasons you may want to consider a life insurance policy even if you don't have kids. Here are a few of them.

  • 8 Reasons Why You Should Buy Life Insurance Today (And 2 Why You Shouldn't)

    Life insurance is an uncomfortable topic, but it's one we all need to talk about. Here are 8 reasons why you should buy term life…

Share2
Pin
Tweet52
Share1
55 Shares
Last Edited: 15th May 2019 The content of biblemoneymatters.com is for general information purposes only and does not constitute professional advice. Visitors to biblemoneymatters.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.

This article is about: Insurance

About Jeff Rose

Jeff Rose is a certified financial planner and an Iraqi combat veteran. He runs the blogs GoodFinancialCents.com and LifeInsurancebyJeff.com

Comments

    Share Your Thoughts: Cancel reply

  1. Craig says

    Thanks, this is a question I have dealt with and have asked others about cause I am younger and really have no need for it since I only take care of myself. Something to look into though maybe in a few years to try to start earlier to get better deals like mentioned.

    Reply
  2. Ethan says

    I am of the opinion that everyone should buy several hundred thousand dollars of life insurance as early in life as they possible can. It doesn’t matter if you don’t have a spouse or dependents yet – you are very likely to eventually. Buying term life at age 18-20 isn’t about the insurance, bit’s about insurability. The list of things that can drive your life insurance costs through the roof or even make you un-insurable is long and likely:

    Most any major health problem
    Some relatively minor health problems
    Any mental health problems or counseling
    Any recreational drug use
    Major moving violations
    Some relatively minor moving violations
    Becoming even moderately overweight
    Developing high blood pressure
    Developing high colesterol

    How many of those things happen between the age of 20 and the age of 30? I’m guessing about 5 out of 9, for the average individual. One catch: if you do buy at age 20, try to find a 40-year term policy. A few companies have offered them. The safe bet is to try to cover yourself to retirement, but the market isn’t geared toward young buyers so you have to shop around. A $500k 30-year policy when you are 20 years old and perfectly healthy shouldn’t cost much more than $20/mo.

    Reply
  3. Financial Samurai says

    Buy Life insurance if you have a considerable amount of debt so your relatives aren’t saddled with your obligations.
    Financial Samurai´s last post ..We’re Ignorant Idiots! Please Tell Us Why A Flat Tax Is Not Fair.

    Reply
Previous Post: 10 Attributes Of The Perpetually Broke
Next Post: Devotional: A Hummingbird’s Reminder
Discover Investment Platforms

Popular Posts

  • 21 Easy Ways To Earn Free Amazon Gift Cards
  • 10 Best Free Tax Filing Services And Software Online
  • 21 Apps That Pay You Real Money Fast
  • 17 TV Apps And Live TV Streaming Services To Watch TV Free
  • 30 Legit Online Jobs That Pay Well
  • 37 Easy Ways To Get Free Gift Cards
  • How To Get Free Stock
  • 40 Easy Ways To Get Free Money Fast
  • 21 Places To Read Free Books Online
  • 24 Legit Online Jobs
  • 17 Best Work From Home Jobs: A List Of Legit Online Jobs That Pay Well

Recent Posts

  • How To Save $100k In 7 Practical Steps
  • How to Save Money When Remodeling A Home
  • How To Hire A Contractor For Your Remodeling Project
  • Remembering 9/11 Years Later: Where Were You On That Fateful Day?
  • TradeStation Review: Commission Free Stock And ETF Trades
  • Firstrade Review: Commission Free Trades on Stocks, Crypto, And Options
  • Cadre Real Estate Investing Review: Commercial Real Estate Investing
  • Best Sites Like Fiverr To Make Money As A Freelancer
  • Axos Self Directed Trading Review: Invest, Trade Stocks For Free
  • 30 Quotes About Easter And Resurrection: He Is Risen!

Disclaimer

The information contained in BibleMoneyMatters.com is for general information or entertainment purposes only and does not constitute professional financial advice. Please contact an independent financial professional for advice regarding your specific situation.

In accordance with FTC guidelines, we state that we have a financial relationship with some of the companies mentioned in this website. This may include receiving access to free products and services for product and service reviews and giveaways.

Any references to third party products, rates, or websites are subject to change without notice. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.

Amazon and the Amazon logo are trademarks of Amazon.com, Inc. or its affiliates.

We respect your privacy: Privacy Policy.

Thanks for visiting!

Bible Money Matters - Seen On These Sites and more..
Bible Money Matters is a personal finance, entrepreneurship and investing community. Give more, save more and live more.

Copyright © 2023 · Bible Money Matters | Sitemap | Advertise | Privacy Policy