Choosing the Perfect Moment for Financial Security

Timing can make all the difference in life, especially regarding important decisions. But how do you figure out the right moment to get life insurance?

It’s always a smart move to get life insurance sooner rather than later. Taking care of it now ensures your family is financially protected no matter what. It’s a safety net you might never need, but it’s comforting to know it’s there just in case.

Life insurance works much like other types of insurance, such as health or auto coverage—you pay a monthly or yearly premium. If something happens to you while the policy is in effect, your family gets a cash payout. This money can help cover everyday expenses like bills, pay off the mortgage, handle credit card debt, or even save for future needs.

Not sure when to get life insurance? The ideal time to apply is as soon as you realize you need it. However, there are certain moments in life when it makes the most sense to secure coverage.

What is The Right Age to Get Life Insurance?

There’s no one-size-fits-all answer to the best age for life insurance. However, the younger you are, the lower your rates are likely to be—especially if you’re in good health. Here’s an example:

A 30-year-old healthy, single man with a steady job could secure a 20-year life insurance policy for just $26 a month, offering up to $250,000 in coverage.

By the time he turns 40, the same coverage would cost $40 a month—over 53% more than it would have just 10 years earlier.

Many people delay getting life insurance to prioritize other financial goals, like saving for a home or paying off student loans. However, buying sooner often translates to big savings in the long run. Simply put, getting life insurance early can save you thousands over the life of your policy. Plus, premiums are often more affordable than most expect, making it a small monthly expense now that could have a huge impact later.

Getting life insurance while you’re young not only means lower rates but also helps you avoid the risk of being denied coverage due to health issues that may arise later. Nearly 27% of Americans under 65 have a pre-existing health condition, which can make it harder to secure a policy. Health problems can either raise your premiums or, in some cases, prevent you from qualifying for coverage altogether.

The great thing about life insurance is that once you’re covered, you’re protected for the entire term of your policy, regardless of any changes to your health. If you apply when you’re in good health, you’re more likely to secure better coverage at a more affordable rate.

Life Insurance Guide: What You Need to Know at Every Age

Life insurance in your 20s

In your 20s, you’ll have the widest range of options and the most affordable rates for life insurance. Even if you’re just beginning your journey, having coverage can provide peace of mind and protect your loved ones if something unexpected occurs.

At this stage, you’ll probably decide between term life insurance and permanent life insurance. Term insurance is the most budget-friendly option, making it a smart choice for young adults. Find out more about life insurance in your 20s.

Life insurance in your 30s and 40s

Your 30s and 40s are a great time to get life insurance, as you’re likely hitting major milestones like starting a family, getting married, or buying a home. These changes bring new financial responsibilities, and life insurance can help protect them. During this time, you’ll still have plenty of affordable options, though rates may increase as you get older. You’ll also need to decide between term or permanent life insurance.

Life insurance in your 50s and 60s

As you age, your life insurance needs might shift. While you may no longer have young children or a mortgage, financial protection can still be important. If you want coverage for a few more years before retirement or plan to leave a legacy for your family, it might be the right time to get life insurance. Both term and permanent life insurance options are still available, but after 50, you might also consider final expense insurance. This type of policy helps cover end-of-life costs, like medical bills and funeral expenses, easing the financial strain on your loved ones during a tough time.

Life insurance in your 70s and 80s

At this stage, life insurance is mainly about helping cover funeral costs and other end-of-life expenses, providing your family with financial support during a difficult time. If you’re in your 70s or 80s, you still have options for life insurance, including both term and permanent policies, depending on your situation.

When is the Right Time to Buy Life Insurance?

One of the key questions to ask yourself when considering life insurance is: Do others rely on you financially? If the answer is yes, life insurance can provide crucial protection. It ensures that your family has the financial support they need if something happens to you. The payout can help cover daily expenses, bills, and debts, easing the financial burden during a difficult time.

Certain key moments in life often make it the right time to consider purchasing life insurance:

Getting married is about starting a life together, which also means planning your finances as a couple. If your spouse depends on your income, or if you have other financial responsibilities like student loans, it’s important to get enough life insurance coverage to take care of those expenses.

Having kids brings new responsibilities, including the costs of raising them. Life insurance can help provide for everything from everyday expenses like groceries to future costs such as schooling.

Purchasing a home usually comes with a mortgage and monthly payments. If something happens to you, life insurance can ensure your family can keep the home and avoid being overwhelmed by debt.

Taking on debt, such as student loans, car loans, or other financial obligations, means that if something happens to you, your family could be responsible for paying them. Life insurance can help cover these debts and ease the financial burden on your loved ones.

Whenever your career takes a turn, like getting a raise or starting a new job, it’s a good idea to adjust your life insurance coverage to match your higher salary. Aiming for coverage that’s seven to ten times your annual income can help ensure your family is protected from everyday expenses and bills.

Significant events like birthdays, anniversaries, and major milestones can help you recognize how much you have to protect. These moments are a great time to review your responsibilities, consult with a financial advisor, and reassess whether your current life insurance coverage is sufficient—if you have any. If there are people who depend on you financially, it’s crucial to ensure they are covered. Use our term insurance calculator to help figure out how much coverage you need.

Is There a Best Time of Year to Purchase Life Insurance?

The ideal time to buy life insurance depends on your personal situation, and it’s a good idea to talk to a financial advisor. While there aren’t major sales on life insurance, certain times of the year may make you more aware of your need for coverage, and shopping around during these times can be beneficial. For example:

Many people opt to shop for life insurance at the start of the year, especially if improving their budgeting or planning is part of their New Year’s resolutions.

If you get a tax refund, think about setting aside a portion to help cover your life insurance premiums.

Many people decide to buy life insurance around a milestone birthday. If you’re nearing a big birthday, don’t wait too long to secure rates for your current age, as some companies increase your rates once you hit your half-birthday.

Choosing the Right Time for Peace of Mind

“Getting life insurance is faster and more affordable than you may expect. Why wait? Don’t wait for the next big life event to get covered. Fidelity Life is here to guide you through every step. Contact an agent or start your online quote today.