If you have ever wondered when to buy life insurance, the simple answer is: sooner than you think.
How Life Insurance Is Priced
Carriers estimate how long you are likely to live. Age and health are the biggest factors, along with tobacco use, family history, occupation and lifestyle. The younger and healthier you are, the lower the risk and the lower the premium.
Why Waiting Costs More
- Premiums rise with age. Each year you wait generally means a higher rate for the same coverage.
- Health can change. A diagnosis, weight change or medication can raise your price, limit options or make coverage difficult to obtain.
- Lock in your rate. With level term life, your premium stays the same for the length of the term.
Longer Terms Can Make Sense
Buying a 20- or 30-year term when you are young means you are covered through the years of mortgage payments, raising children and building wealth, at a fixed rate. If your needs change, many policies can be converted to permanent coverage without a new medical exam, subject to the policy's conversion rules.
Permanent Coverage Starts Earlier Too
Whole and universal life policies also cost less the earlier they begin, and cash value has more time to accumulate. Final expense and legacy policies are also generally less expensive at younger ages.
It Is Not Too Late
If you are older, you still have options. The best time to buy was years ago; the second-best time is now, before the next birthday or health change. We will show you several carriers' prices side by side.