When asking yourself if you’re at an appropriate age to buy life insurance, you should definitely consider two schools of thought:
- Are you in your 20’s? If you’re asking about life insurance young, then good for you! Acquiring cheap rates that will set you up for the next couple of decades is definitely a wise choice. With that said, it is not necessary to purchase life insurance at this point, but it is a sound pre-planning measure if you believe you’ll have a family within the next 10 years.
- Are you starting a family? Perhaps you’re inquiring about life insurance, because you’re starting a family. No matter what age you’re at currently, if you’re just starting a family, or have a family established and want to look into ways to financially secure them, then the time for a life insurance purchase is now.
Unfortunately, none of us have the foresight to know when tragedy might befall us, leaving our loved ones the burden of paying for expensive funeral costs and debts; all while suffering a hit on income now that you’re not there to supply it.
This is why life insurance is so important; it provides your loved ones with a safety net.
A recent study conducted by LIMRA—an insurance industry research outfit—determined that the percentage of families in the United States that actually possessed this safety net was at an all-time low of 44%–which is a 26% decrease from 2010. Furthermore, out of that 44%, 11 million families had children in their households under the age of 18.
This means that 56% of families in the U.S. haze zero protection against tragedies that strike all day, every day, to other families just like theirs. When it does, they’re left with a financial burden that can often break a family and set them up for years of difficulty just from one single tragedy.
IT’S EASY TO AVOID THIS FATE
It’s important to compare life insurance when you have children. Ideally, you should purchase long before you have children and save yourself a substantial amount of money by taking advantage of the lower premiums offered to young adults.
However, if this option didn’t present itself in time, do not underestimate the safety net of life insurance and write it off as a frivolous expense that may, or may not, ever be necessary.
Unfortunately, this is the trap that a whopping 56% of U.S. families have fallen into and it’s their loved ones who will literally pay the price.
Image by libertygrace0 / flickr