When does Life Insurance Make Sense?
Updated: May 18
Are there times when it's too late to buy life insurance? The response to that question varies from person to person depending upon who answers. Most life insurance agents say that almost every adult can buy insurance, while some financial advisors may caution against it based on your personal situation.
Still those vast consumers in the marketplace might say they are too old or too sick, or they think they may already have enough through their job. With varying degrees of accuracy, they are all correct. However, once your ticket is punched, you are out of time for any coverage if you haven't already made that purchase. What happens to your loved ones and your assets if you are underinsured or uninsured? The answer is not good, especially if you are not prepared.
If you are in your early adulthood, the cost of insurance is very inexpensive. If you are a two income family, but one of you is the primary breadwinner, it is best to determine the financial needs you have that need protected, such as a mortgage, debt, living expenses, college funding for kids, and other necessary lifestyle costs. However, the older you get, the more costly life insurance can become. Not only that, but the chance of getting a chronic illness increases as you age.
According to Insure (dot) com, many companies limit the purchase of term insurance at age 70 for longer than 10 years. The risk to the carrier is too great. However, you can often buy whole life, including "final expense" policies til age 85; you need to weigh the costs and options when it comes to life insurance -- regardless of your age. If you are trying to preserve your current wealth for your heirs, long-term care insurance may make more sense.
As a licensed agent in most states, I can help you with these choices. Contact me right away to see what works best for you. We can build a financial program together that is customized for you and your family.