The investment in life insurance is a big one. It may not be a major investment. But, making the decision to buy coverage can be challenging.
Many people mistakenly believe life insurance is too expensive. It does not have to be. But, buying at the right age matters.
Most often, investing at a young age is best. Doing so helps safeguard your loved ones longer. It also generally costs less. There are a few guidelines to help you decide.
When Is the Optimal Age to Buy Life Insurance?
Many investors consider it ideal for people to invest in life insurance prior to hitting age 35. At this age, most people remain relatively healthy. They have years of life to live. They also are likely to have dependents and assets they wish to protect.
Investments in life insurance by those under the age of 25 are less common. The reason for this is simple. Many people who are younger do not have a lot of disposable income. They also may not have as many assets to protect. They need to focus on paying for their expenses. Yet, as they get older, it becomes easier to invest.
Purchasing life insurance for a child under the age of 18 can be beneficial. A basic funeral insurance plan may be enough. These young people do not have anyone relying on them for income. They also do not have assets or debts. Yet, having finances available to help in a tragic event if the child dies can be helpful.
Why Buying Young Matters So Much
It’s best to invest in life insurance at a young age. The sooner you do invest, the lower your costs are. Here are a few things to keep in mind:
- It costs less to buy life insurance if you are young and healthy. You may be able to maintain this low rate well into your 50s and beyond.
- If you invest in whole life insurance at a young age, you begin to invest in your future. You can borrow against these policies over time. You also can tap into them during your retirement years for income.
- Term life insurance policies can help cover very specific needs for a short period of time. They are very affordable for those who are younger. Homeowners, parents, and those with debt benefit the most.
Which is right for you? Speak to our life insurance agent to find out. You may be in for a surprise when you see how affordable your Oklahoma City life insurance plan can be.