Life Insurance: What Age is the Right Age to Get Insured?

It’s common to wonder when it’s really the right time to explore life insurance, and the answer is relatively simple: it’s always the right time to secure a policy that meets your needs according to your age, family status, lifestyle, and other factors. However, while your need for life insurance doesn’t change, the value and purpose of that policy will change over the years as you move through different stages in your life. 

Let’s explore that further: 

Single adults often overlook life insurance needs, but are surprised to learn that if they have a cosigner on any debt when they pass, the debt becomes the sole responsibility of that cosigner. Additionally, end-of-life expenses can be burdensome for loved ones without a life insurance policy. For single adults, life insurance is typically secured with these factors in mind.

Married adults without children begin to consider what their income means to their spouse and how they might replace lost income or pay off shared debts in the event of their passing. Married adults without children should consider both lost income and any marital debt when calculating the appropriate amount of life insurance. 

Parents have new factors to consider, like the cost of raising a child without one income or sending a child to college. When parents take out life insurance, they typically think about any debt, lost income, and the future expenses associated with raising children. Life insurance needs are typically greatest for married adults and new parents. 

Empty nesters and retirees begin to notice that the value of their life insurance may not need to be as high as it once was. Empty nesters and retirees should consider supporting the remaining spouse and paying off debts, if any exist at this life stage. 

To explore your life insurance options, visit Right Choice Insurance and Taxes serving Tuscon, AZ today.

When is life insurance considered a financial asset?

Life insurance by itself isn’t typically categorized as a financial asset, but in some cases, it qualifies. Right Choice Insurance and Taxes serving Tuscon, AZ wants you to understand when life insurance adds a financial asset to your portfolio.

The term asset class refers to a purchase you made today that you anticipate will have greater value in the future. Assets should appreciate over time, but some could depreciate.

Term life insurance can qualify as a financial asset when it has a cash surrender value. Whole life insurance can qualify as a financial asset when it has a cash value account attached. The latter can be either a savings, money market or investment account.

Both of these types of life insurance guarantee a future value for the policy while you live. If you can only use the policies for your beneficiary, then you could argue it qualifies as their financial asset, but financial planners and insurance agents do not really look at it that way.

You can only consider a life insurance policy with a surrender value or a cash value as a financial asset. A financial asset contributes to your financial portfolio, which, in turn, adds to your net worth.

Adding to your net worth helps you overall in finance and in life. You can more easily obtain loans and credit cards when you have better credit and a higher net worth.

Consult with the insurance agents at Right Choice Insurance and Taxes serving Tuscon, AZ to learn which life insurance product can help you the most and which qualifies as a financial asset. Call us today.

Do I need Life Insurance As a Young Person WITHOUT Dependents?

Many young people may feel that life insurance isn’t a true need until you get older or have a family. However, nothing could be further from the truth. Most of us won’t leave this earth as young people. As a result, it pays to put safeguards in place to help us as we age and grow families. Waiting until we’re older to invest in this beneficial insurance can significantly differ in how much we’ll pay. Right Choice Insurance and Taxes of Tuscon, AZ is committed to educating young people about life insurance benefits.

The ABC’s of Life Insurance

Life insurance is less expensive the younger you are. This means that the best time to purchase life insurance, in terms of cost, is while you’re still in your twenties or thirties. Beyond your thirties, life insurance becomes more expensive to purchase. A key reason to purchase life insurance as a younger person can lock in a good rate that you will continue to pay for years, depending on the type of life insurance you invest in. Term life can be a good purchase for a young person because you will pay that same small rate over the insurance policy term once you lock in the lower rate. In essence, investing in life insurance at a young age grants you lower premiums and reduces the cost you’ll pay on life insurance over the course of your lifetime.

Other Benefits…

Life insurance also has the ability to reduce the worry and stress associated with funeral costs and other final expenses. Life insurance is cheaper for young people because there’s less risk of insuring a healthy young person. Term life insurance is often considered one of the better investments for young people because the low cost of purchasing hundreds of thousands of dollars in coverage makes it very affordable to purchase and keep this insurance well into your elder years. Suppose you have questions about purchasing life insurance as a young person, give us a call. We’re here to help.