When is the best time to buy Life Insurance?

This was a recent question that was ask to me by a friend who is a Real Estate Broker.

The answer I gave her was and always will be, NOW!

In fact, you should have secured your life insurance a few years ago, I told her.

Although I am a licensed Insurance Agent, the reasons I will share with you are from an unbiased perspective. I am talking to you as an educated Husband and Father of 5.

Here are the 3 primary reasons you should not delay this process any longer:

It’s cheaper to do it now!


Since Life Insurance is based on your AGE, it makes sense to buy it now while the price is lower.
Unless you prefer to pay more.

The Life Insurance given to you by your employer is most likely TEMPORARY.


Unfortunately, while you may be covered through your employers policy now, it almost always is attached to the company that you work for.
Company’s offer their employees something known as, Group Term Policy. The Group is considered you and your co-workers and the Term is the length of your employment.
In other words, the moment you leave your job, whether it’s on good terms or bad terms, you are no longer covered for the same amount of life insurance.

When you leave the job 1 of 3 things will happen.
1. You are given an option to convert the TERM life insurance that you once had, into Permanent Life Insurance by paying a new, higher premium payment.
2. The original amount that you once had will be significantly reduced down. For example, while employed you are given a $50,000 policy, but upon retirement it could be reduced down to $5,000.
3. The policy is taken away from you and lost completely. Leaving you as an older man or woman with possible health issues, who now needs to shop around for a new policy.

In my experience, number 3 is the most common, but your case maybe different. If you are currently unsure of what will happen to your policy through your current employer, you may want to verify the details of your policy with them the next time you’re in the office.

You can become uninsurable.


This is by far the most important reason of them all. While you may feel like Superman or Superwoman today, that might not always be the case.
The moment your health take a dive, you could potential become unable to qualify for life insurance.
Don’t mistaken Life Insurance for Car Insurance. Car Insurance is and always will be easy to get. Especially if you have a brand new car. As long as you’re willing to make the payment the company will sell you car insurance.
Life insurance on the other hand is different. If you are too sickly and have a major medical issue, the insurance company will deny you, no matter how much money you’re willing to pay. Your background and driving history plays a major role as well.
In the end, it’s a business and it boils down to risk. Unfortunately for you, you are just too high of a risk. In my experience, applicants often down play their health issues when applying for insurance. Acting as if their current health condition is no big deal and in most cases they are denied by the insurance company because they’ve waited too long.
Just as i told my friend, I’ll tell you….. DON’T WAIT!

Why risk it?

If you’re not sure where you stand when it comes to your life insurance, take some time out to figure it out. You’ll be happy you did.

Note: There are a few companies the will offer people “No medical questions asked” policies, however that in my opinion is used during times of complete desperation.
Those type of polices charge people an arm and a leg. They set limits to how much you can purchased, $25,000 is normally the maximum.  And more importantly, they do not pay out claims within the first few years of owning the policy.
Makes me think, what’s the point of even getting it?

As you can tell, I’m as honest they come and I tell it how it is. I hope this helps.

 

So, you see how I answered my friends question, what would have been your answer?

Put your answer in the comment section.

 

Written by Ivan Maldonado
Author of Head Start 2 Riches

Edited by Mrs. Alicia Maldonado
Author of Ugli Fruit
HeadStart2Riches.com

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