The Best Time to Buy Life Insurance

The Best Time to Buy Life Insurance

by: Kendrick Chua, the Wealth Warrior

Just recently, one of the moms I interviewed for my blog post, Super Single Mom has been diagnosed with an enlarged heart that had her confined for several days. Fortunately, she has been discharged and declared out of danger but the risk of collapsing any time is imminent.

Unfortunately for her, she doesn’t have any life insurance and even if she decided to take out one for contingency purposes for her family, there is a great chance insurance companies will deny her case.

She’s only 31 and has four children.

Her case is just an example of how illnesses can creep up like the Angel of Death, striking silently and without warning, all too often leaving his (or probably her) victims, flat-footed and aghast.

With that, why is it a lot of people, who believes in the importance of life insurance, still doesn’t get one?

My theory: It’s not important now. It might be in the future, but not at the moment. They couldn’t be more wrong.

In fact, the best time to buy a life insurance is when you actually don’t need it! That means having lots of disposable income to buy one, no dependents and at the prime of health.

High Disposable Income

As a young professional, any surplus, salary increase or bonus is sheer joy but you don’t need the extra money. You may want it but you don’t need it. As such, you may want to set aside a part (just a part will do) to purchase a life insurance. It can start letting you accumulate funds early and this will be beneficial for you in the long run.

Having high disposable income is a result of little obligations relative to your age and situation. This period may not last long. Some are not even fortunate to be in this condition. Take advantage of it as early as possible.

No Dependents

With dependents existing, having yourself insured should have crossed your mind. The sales agent must have pitched the “your-children-need-to-go-on-living-after-you-die” line making you realize the importance of insuring yourself. At this point, even if you want to, your funds may not allow you. Food, clothing and shelter will definitely compete with insurance premiums. Always, it is the former that wins. That is a pity when insurance costs should be at the same level with the basic commodities.

Of course term insurance is always an option but in the long run, it may not be advantageous for you at all (Suze Orman will adamantly disagree with this).  Whole life plans provide cash or fund values which you will find very useful…eventually.

Prime of health

If you are healthy, get yourself insured! I repeat: get yourself insured. There is no better time and more compelling reason for you to do so. Once you’re struck with a lifelong illness such as diabetes, hypertension or even cancer, you won’t get the privilege anymore.

A lot of people want to have themselves insured but because of ailments and illnesses, they aren’t able to do so and often blamed why the agents did not do a better job of selling the idea to them. Go figure.

Just like any other product, an insurance policy is best bought when there is no pressure on your part. If there is, you might just end up getting a policy in haste but really doesn’t suit you making you throw away good money.

You see, buying life insurance is both an emotional and rational decision. You cannot buy based on pure emotions nor can you buy solely on analysis. It has to be a combination of both to get you the best policy you can have for yourself and ultimately, for your family.

Tags: life insurance

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