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Why the Best Time to Buy Life Insurance is Now

By making the decision to purchase a life insurance policy, you are taking an important step to protect your loved ones’ financial futures. But it’s easy to fall into a trap: thinking that you don’t have enough time right now to complete the purchase process, that you can’t afford it, or that you can put it off for a later date.  

“The best time to plant a tree was 20 years ago. The second best time is today.” 

This popular Chinese proverb can be applied to many situations. It illustrates a similar point in regard to purchasing life insurance. While we can’t go back in time, you can take action today that positively affects your family’s financial future for many years. 

So even if you didn’t buy life insurance 20 years ago, or last year, or yesterday — don’t worry. You can buy it today. And you’re in luck because right now is a great time to purchase your life insurance policy. 

Advantages to Buying Your Life Insurance Policy Now 

Life Insurance Prices are at a 20-Year Low 

You read that correctly: life insurance is cheaper than it’s been in 20 years. This can be attributed to a few different factors. People are living longer due to technological and medical advances, so life insurance companies are able to offer lower rates. New technology and advanced algorithms are also helping insurers to interpret data in smarter ways. With this, the insurance companies are able to more accurately predict the risk associated with insuring each of their customers.  

Changes in the life insurance regulatory industry also are partially responsible for low policy prices. Now, insurance companies are permitted to hold a more reasonable amount of cash in their reserves to pay out policies. This means they are better able to manage their money. 

No matter what type of life insurance you’re considering — term life insurance, or permanent life insurance — prices are low. So right now is a great time to purchase your policy. 

You’re Younger and (Probably) Healthier Now 

Even without taking the 20-year low price into consideration, it’s always best to buy life insurance as soon as you can. That’s because life insurance becomes more expensive every year as you age. In fact, some insurance companies have rates go up 6 months before your actual date of birth. 

The reason is simple. A younger person is going to be less of a risk to insure than an older person. According to Investopedia, the optimal time to buy life insurance is under age 35, and throughout the life of the policy, the cost of delaying the policy purchase is about $1,800. But no matter how old you are, there’s no time like the present. Starting today can do a lot of good in the long run.  

Additionally, life insurance prices will always be lower for healthier people. Regardless of your age, it’s possible that right now, you’re the healthiest you’ll be. Waiting to buy your policy can come at a high cost. As individuals grow older, they are more likely to develop health problems or medical conditions. These conditions can make it more difficult to get insured, and you can expect to pay higher premiums. 

That said, we’re all susceptible to a health or medical condition. And that shouldn’t preclude you from considering life insurance. Our licensed agents specialize in matching clients with the carrier that will provide the best coverage specific to the health and financial needs of the individual. 

You Can Always Change Your Policy Later If Needed 

Here’s an example scenario: after buying your life insurance policy, you lose weight, lower your blood pressure, or quit smoking. Your insurer identified these as risks and factored them into your policy price. But now, you’re healthier than before. And you’d probably like your life insurance premiums to reflect that. Or maybe, life insurance prices keep falling. You don’t want to be locked into the rate you purchased if there’s a lower price available. 

The good news is that you can always replace your policy if you do find a better life insurance option for you. You can reshop your rates any time. This way you can find a new plan that fits you better. All you have to do is cancel the old policy and purchase a new one. Just make sure the policies overlap so you aren’t left without coverage. 

Additionally, if your life insurance coverage needs change due to a life event — such as the birth of a child — you can always buy additional term life policies. This method is called “stacking,” or the “ladder strategy,” and using it strategically can make sure you’re fully covered for what you need, while keeping premiums lower. For example, rather than buying a $1 million policy upfront, an individual could buy three separate policies expiring at different times: $500,000, $300,000, and $200,000. 

Stacking your term life insurance policies is useful for when your needs change, but make sure to talk to your trusted insurance agent or financial advisor to design your personal plan. You can start by exploring our Life Insurance Calculator to get a sense of how much coverage you need today.  

Contact SelectQuote to Buy Your Life Insurance Policy Today 

Life insurance is essential to taking care of your loved ones, ensuring that they have the financial support they need in the long term. No matter what happens. It can help with mortgage payments, college tuition, and more.  

If you haven’t bought life insurance, there’s no better time to do it than now.  

Though it may seem complicated, your SelectQuote agent is here to help. In just minutes, by answering a few simple questions, we will find the coverage your family needs from highly rated carriers* at a price you can afford. We shop. You save. 

Contact us to get your free, no-obligation quote today. 

* ALL RATED A- TO A+ BY A.M. BEST FOR FINANCIAL STRENGTH*  A.M. Best is an independent rating organization that assigns ratings measuring financial strength or claims-paying abilities. They consider factors such as overall operating performance, asset quality, financial flexibility and capitalization. These ratings are current as of 08/19.


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