Should I Buy Life Insurance Now Or Wait?

Should I Buy Life Insurance Now

If you’re like most consumers, then buying a life insurance policy isn’t at the top of your list. I mean, you’re buying it with the hope that you’ll never need it, right? It’s not exactly something that people like to think about. However it would be a mistake to not have any even the smallest coverage.

Today’s rates for term life insurance policy are pretty affordable. It’s a responsible purchase, especially if you have a family or people who financially depend on you. Funerals aren’t cheap either.

Below are the types of life insurance rates you can expect to see online.

Average life insurance rates 2020

Purchase AgeCoverage amount20-year Term30-year TermWhole life
Male, 30$250,000$148$220$1,829
$500,000$226$362$3,600
$1 million$370$639$7,123
Female, 30$250,000$131$189$1,626
$500,000$193$302$3,195
$1 million$296$520$6,313
Male, 40$250,000$209$336$2,735
$500,000$341$595$5,412
$1 million$590$1,109$10,747
Female, 40$250,000$180$276$2,441
$500,000$291$481$4,825
$1 million$493$888$9,573
Male, 50$250,000$457$802$4,244
$500,000$835$1,508$8,432
$1 million$1,589$2,889$16,787
Female, 50$250,000$365$612$3,790
$500,000$654$1,138$7,522
$1 million$1,149$2,119$14,967
Annual premiums using an avg. of the lowest rates in each category for men and women in good health. Source: Quotacy via Nerdwallet

Should I Buy Life Insurance Now

Everyone’s situation is a little different. For this article I’ve come up with five scenarios where have a life insurance policy is a no-brainer.

1. Life Insurance For Parents

Recommendation: Term Life Insurance Policy

If you have children who depend on you to provide financially, then life insurance isn’t an option – it’s practically essential. Too many families underestimate the value of a stay-at-home parent. Child care, transportation, home upkeep and maintenance, homeowner insurance premiums, etc.

If you’re still wondering if you need life insurance, ask yourself:

  • If I passed away tomorrow, how would it impact my family financially? Is my income essential?
  • Could my family afford to stay in the same house or apartment?
  • Do you have enough money saved up to afford daily life expenses? Enough for 10 or more years?
  • Is there enough to pay college tuition?
  • Without a basic life insurance policy, how long would would they be able to maintain their current lifestyle if you were gone?

These are the types of questions you should be asking. Life insurance can help your family recover from the sudden loss of your income. It’s designed to soften the burden on those you leave behind.

2. Life Insurance For Couples

Recommendation: Term Life Policy

In most American households there are two incomes. An average size life insurance policy helps your spouse live comfortably if something happened to you. If you are a healthy person – you don’t smoke and have not had any serious health issues – you can get an online life insurance policy within minutes.

You may have to fill out the health questionnaire, but as long as you are a healthy adult (and a non-smoker) most policies will not require a medical exam.

If you are married without children we recommend a term life insurance policy. As long as there are no extenuating circumstances it should be hassle-free and by applying online you’ll instantly be able to see the annual rates.

Also for term life insurance like this, the coverage will go into effect immediately upon approval and first payment.

You can buy a term life insurance policy in 10 mins online!

3. If You Have Elderly Parents

Recommendation: Whole Life Insurance Policy

With the baby boomer generation their later years it’s common for families to have one or two people in nursing homes or assisted living facility. If this applies to your family you may want to look into getting them a Whole Life insurance policy.

For elderly persons, having a Whole Life policy takes care of any final bills and end-of-life expenses, including funeral costs. The annual rate is expensive, but the coverage makes sense if paying for it all would be a burden.

If your parents are between the ages of 50 and 80, they can get up to $25,000 of coverage. No medical exams. No medical questions.

Here’s what a typical whole life insurance policy would entail for a person 50-80 years old.

  • Quick & easy online application
  • Almost guaranteed approval
  • Up to $30,000 of coverage
  • Fixed policy rate (it won’t increase as they age)
  • Limited benefit for the first 2 years (up to 110% of the premium in the first two years)

4. Life Insurance For Seniors

Recommendation: Whole Life Insurance Policy

Retirement means less work and less stress.

But one worry you might not be able to get away from – who will take care of your end-of-life expenses if something happened? Whole Life is the most common type of life insurance for senior citizens and retirees.

  • No medical exams
  • No health questionnaire
  • Takes only 5-10 mins to get approved
  • Usually $30,000 in coverage

5. Life Insurance For Singles

Recommendation: Term Life Policy

If you are single (not married) would there be anyone who would feel the financial burden? Not only income, but all the end-of-life expenses too. This includes funeral costs, an obituary (yes, those cost money), selling your home, etc.

With a basic term life insurance policy you alleviate the financial burden if you something happened to you.

Please note that basic insurance coverage is subject to age limitations and approval requires a simple health questionnaire. If you are a healthy adult, it should be easy-peasy!

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