When is a good time to buy life insurance?
According to a recent survey by Harris Interactive, there are a number of different reasons why people decide to purchase life insurance, including getting married, starting a family and buying a house. Other reasons include a change of employment and starting a business.
If you are single and have no dependants life insurance may not seem important to you at this time in your life, but if your circumstances change it could be advantageous to re-examine your options and consider taking out a life insurance policy.
When you are undergoing a major life change it is a good idea to consider taking out a life insurance policy, particularly if this event increases the likelihood that people will be depending on you financially in the future, as is the case if you are getting married or starting a family. Raising children is expensive and if your partner was left alone to support them in the event of your death, the costs involved (along with the usual living expenses) could create unnecessary financial hardship and stress.
Another time to think about buying life insurance is if you are taking on a large financial commitment (for example, a mortgage or a large business loan) and your partner or dependants would be unable to easily meet the repayments in the event of your death. Having a suitable life insurance policy in place can help to ensure that they won’t struggle with debts or be forced to lower their standard of living after a loss in family income.
Life is unpredictable, but by purchasing a life insurance policy you can at least be confident that if something unforeseen occurs, you have provisions in place for your family.