We’re all well aware of the importance of life insurance policy. We buy them from various reasons, we have a neighbor who passed away in his 30’s and left his family with too many bills to pay, we have purchased a house and need to cover for mortgage, maybe one of our relatives died too soon and no one could care about his children. Those are good reasons to buy a life insurance policy because we never know what tomorrow brings to us. But are we paying too much for some options in our policies we don’t really need? Below are some things to consider before you purchase your life insurance, considering your age.
If you’re in your 20’s consider buying only term life insurance when having a mortgage to cover. You don’t really need any extra coverage options that can come with the policy, if you have some extra cash consider investing it into home insurance to cover for your property. In their 30’s people usually have families and if you’re in this group and especially if you have a spouse and kids who are dependent on your income, life insurance is a must, buy any additional options that cover for injuries or surgical procedures you can afford. In 40’s you’ll need to think about disabilities that may come as a consequence of injury. This option should always come with your life policy, this is the only way to make sure you and your family will be covered in case of some major injury. When in your 50’s, consider adding option of long term care to your life policy, your age makes this type of extra option affordable and in case of some chronic illness that would put you in a bed for a longer period of time this is money well invested. In your 60’s you should be thinking about switching your life policy from term to permanent life, this way you’ll be adding some money into savings for the rainy days.
What is written above can be considered as a small guide but it’s based on the mistakes people usually make when purchasing a life policy. Paying for some extra options in your twenties can be considered as wasted money you could be spending elsewhere, it’s almost as not having insurance in your thirties or forties when you’re family members would “feel” your absence the most. Not thinking about illnesses after the age of fifty is almost irresponsible, as well as forgetting to check your policy when you reach the age of sixty, drop those “extras” you were paying for and redirect money to some form of savings that permanent life insurance can offer.
Every insurance policy is money, life is no different. When buying this product you need to start thinking about what you really need, can afford and are willing to pay for, because if you don’t, having some or all extra options you’ll never need or be able to use can raise the price of insurance sky high leaving your pockets empty.
