What is the best time to get life insurance? The answer is it depends on your circumstances. Many factors will determine whether you should get life insurance right now or hold off and wait until the future. Let us look at some of these factors, including income, health, age, dependents, debt, and marital status.


Many people will argue that you should get life insurance while you are young. There are several reasons why purchasing life insurance when young is advantageous. The younger you are, the cheaper the life insurance premiums will be and the easier it will be to get approved for a life insurance policy. People also tend to be healthier when young. This also helps reduce the cost of the premiums and increases approval odds.


Another reason someone would consider buying life insurance while still young is that it ensures the insured will leave a legacy to their family, even if they had not accumulated any wealth or assets such as a house and savings. Young people also tend to have debt, such as student loans, mortgages on a home, and car payments. If you have life insurance when young, the insurance will help your family deal with these expenses should you pass away.


Yet another reason to purchase insurance when young is that a permanent life insurance policy can build substantial cash value. It can be used as a down payment on a home or even sold for money later on in life. Suppose you want to have life insurance for your entire life. When you are young, purchasing a permanent life insurance policy can help you save on premiums early and increase your chances of getting the policy you want. You will also have an asset that builds value over time.


There are downsides to buying life insurance when you are young. Instead of paying premiums on a life insurance policy, that money can be saved and invested. The investments will typically yield higher returns than a permanent life insurance policy’s returns. Many young people often have limited budgets, and life insurance is an added expense that has to be paid monthly. If you are not married and don’t have kids, then buying life insurance may be unnecessary at the time.


Another essential thing to consider is that a term life insurance policy will have inexpensive premiums when young, but it will only last for a specific term, such as 10 or 20 years. If you have a limited budget and kids who depend on you, a term life insurance policy may be a good idea for you. Permanent life insurance will be more costly, but the policy will be effective for your entire life and build value should you decide to tap into it.