When to get life insurance

When should you get life insurance?

Generally, it's ideal to purchase life insurance when you experience significant life changes or new financial responsibilities. Events such as marriage, buying a home, or having children typically increase the need for life coverage. Buying insurance sooner rather than later may help secure lower premiums and comprehensive coverage.

Life events that might prompt you to get life insurance

Major life milestones often trigger the need for life insurance. These include getting married, having or adopting a child, purchasing a home, or starting a new business. Such events introduce new financial responsibilities that life insurance can help cover.

Financial needs that might prompt you to get life insurance

Financial obligations such as mortgages, education expenses, or business loans significantly increase the importance of having adequate life insurance. Life insurance ensures that these responsibilities won't burden your loved ones if you're no longer there to meet them. Regularly reassessing your financial needs helps keep your coverage aligned with your situation.

Does your age matter?

Your age  influences life insurance costs—the younger and healthier you are, the less the premium cost will generally be.. Purchasing coverage early helps lock in  rates and protects against the risk that future health issues  could make obtaining coverage more difficult or costly.

Benefits of getting life insurance as a young adult

Life insurance is especially advantageous for young adults because it secures financial protection at a generally lower cost. Purchasing a policy early provides financial security for your dependents, covers potential debt, and locks in favorable rates.

It can protect those who rely on you financially

If you have a spouse, partner, child, parent, sibling, or business partner who relies on you financially, life insurance can help protect that person.

It can help pay for life’s expenses

Do you have a family, or are you planning on having a family? Life insurance can cover your family’s living expenses and debts. It can also protect others from financial burdens resulting from your passing. Even if you have great benefits through work, additional coverage can ensure comprehensive protection beyond basic employer-sponsored group insurance.

The earlier you buy, the better

Life insurance purchased today protects your future insurability. The younger and healthier you are at purchase, the less expensive your premiums typically will be.

It can help you avoid passing debt on to your loved ones

Life insurance can ensure that debts like student loans, mortgages, or credit card balances aren't passed on to your loved ones after your passing. While federal student loans are discharged upon death, private loans are not, making life insurance crucial in covering those obligations.

It can cover final expenses

Life insurance can cover funeral costs and other end-of-life expenses, relieving your loved ones from financial stress during a difficult time.

It can grow over time

Beyond the protection aspects, permanent life insurance helps build cash value, offering a financial resource that can later support buying a home, education costs, or retirement.

Life insurance options: Which is best for you?

Choosing the right type of life insurance depends on your unique financial goals and circumstances. Term insurance provides coverage for a specific period, while permanent policies like whole life  offers lifelong coverage and builds cash value. Consult with a financial professional to determine the best fit for your needs.

Term vs. Permanent Life Insurance

• Term life insurance allows you to obtain valuable death benefit protection¹ at a cost that’s typically less than that of permanent life insurance because it does not have a cash value that gives your loved ones financial security if something happens to you. Term life insurance offers valuable flexibility; most policies allow you to convert to permanent life insurance as your needs evolve.
• Permanent life insurance is protection for your whole life, not just for a limited period of time. In addition, most permanent life insurance policies include a savings component in which you can build assets known as cash value. Over time, as you pay your premiums, your policy’s cash value will grow. Eventually, your cash value may become a valuable asset that you can tap into as your insurance needs and priorities change.² Permanent life insurance typically costs more than term life for the same level of protection, because of the additional cash value benefit it provides.

When should I consider getting life insurance?

Consider getting life insurance as soon as possible to secure the best rates and provide financial stability for your loved ones. Life insurance is particularly essential after significant life milestones or increased financial obligations, ensuring that your family's future remains secure no matter what happens.

When to get life insurance FAQs