When should one consider buying life insurance? – Rai Rupinder

Ideally, if you have loved ones that solely depend on your source of income, or if you have any outstanding debts that will continue to carry on after your demise, then you should consider buying a life insurance policy. Having said that, it usually varies between individuals based on their family and financial situation.

It’s better late than never

The perfect timing to purchase a life insurance plan is when the person is a young adult. This is because the younger the policyholder, it ensures they qualify for lower premiums. The older you get, the premiums are usually on the higher side. The notion is that the individual can develop health problems as they grow older, making the insurance even more costly, or in some instances, being denied from buying the plan. But the sad reality today is that most young adults are put off from purchasing a whole life insurance plan as they are faced with monthly payments such as mortgages, car loans, student loans, credit card debt etc. While paying off the debt as mentioned above is important, you must be aware that missing out on purchasing life insurance at a young age can significantly impact your finances in the future. It can be compared to like delaying saving for your retirement. The sooner you purchase the plan, the better it gets for you and your dear ones.

A safety net

A life insurance policy serves as a financial security blanket in the unfortunate event of your death or being permanently disabled because of an accident or workplace incident. The pay-out from the policy can support your family and act as a fund for their expenses if the income earned from you stops suddenly.

The cash value in a life insurance policy grows tax-free. If purchased at an early age, the contributions can amass significant value over a long period, as the insurance cost is fixed for the entire policy term. If kept for longer, it can be an additional source to supplement your retirement income. That is why it is better to start as early as possible.

Greater financial impact if delayed

Delaying to purchase life insurance at an early age can be a costly financial decision and not a wise one. The older you get, you start to develop medical conditions; some may even be serious. In that case, the premium payments will be high, and the insurance company can outright decline the life insurance plan coverage.

To find out more about life insurance, get in touch with Rupinder Rai today.