Some would argue that, from the moment a life begins it could and should be insured. There is debate over insuring a child, just as there is debate over when you should stop paying for life insurance. However, this is not the only time to get life insurance and cost, age, health and dependents all factor in to when a person should get life insurance.
Why Get Life Insurance for a Child (0-17 years old)?
While no one wants to think about a child or teen needing life insurance, there are still death costs to contend with no matter what the age of the deceased, so it must be considered. However, because a child will not have dependents, you largely need a policy that will cover funeral costs and little else.
Additionally, since the cost of life insurance is based on age, insuring a child is relatively inexpensive and provides peace of mind. More importantly, since the policy increases tax-deferred, there is potential for great value when purchased at an early age. If you choose a whole life policy, the child can take ownership when they turn 18. While they can choose to cash out any equity it holds at that point, they could add additional funds that could be used for a home payment, schooling, wedding or even as a retirement fund later on.
Why Buy as a Young Adult (18-35)?
First of all, because of the cost advantage to buying when you’re younger and hopefully in good health, this is financially the best time to buy next to getting it as a child. Most people in this age group can get a $100,000 policy for under $15/month.
Secondly, even if you don’t have dependents, there is a good chance you have student debt which might not go away even if you do. Similarly, credit card debt will be taken out of your estate before anything can be passed on to your beneficiaries.
What is the Cost of Waiting?
If, instead of getting your life insurance at 30, you wait until you’re 40, that $15/month will jump to $20. This might not seem like much, but over the course of the policy it could cost you an extra $2,000. This only goes up as you get older and can also be contingent on your health which is more likely to face complications as you age. Even worse, you could be denied entirely if you are too old or sickly later.
Getting Life Insurance Now
Still uninsured? Even if you’re not in the ideal age range or health for life insurance, there is still a policy that can suit your needs. At Arbor Creek Financial, we’re more than just an insurance company, we’re financial advisors who can help you make better decisions for your money and your loved ones. To learn more about our cost-effective life insurance policies for all age ranges, call us at 1-866-462-6526.