The short answer is that you should be thinking about life insurance as early as possible. If you’re reading this, the chances are that you’re of an age where life insurance is a necessity.
What age should I consider life insurance?
As soon as you’re over 18, you can start thinking about life insurance. The big benefit of being smart and covering your life while you’re still young is that you’ll enjoy lower premiums. Of course, this doesn’t mean that once you’re over 18 you’re too old to be able to make life cover worthwhile. It simply means that you may pay more for the same cover. Regardless, it’s best to take out life cover before any major health events occur so that you won’t be penalised.
What about when I get married and/or buy a house?
After getting married and buying a first home, many couples start to consider life cover much more seriously.
It’s true that you do need life insurance to buy a house if you haven’t paid cash (more about that here), so you will be required by the banks to take out enough to cover your bond. However, you may realise that your new spouse needs more protection than just the payment of the house. If you’re the main earner what would your death mean in terms of loss of income? If you’re not, but you contribute to the household either with a smaller salary or by taking care of chores and so on, would life cover help to lessen the burden on your spouse if you were to pass away?
What if I don’t have kids?
For sure, having kids is a great reason to take life cover. You want to make sure that you can leave a legacy to your kids and that they’re able to carry on living their lives after you’re gone; going to school or university, buying a house or car and getting married. If you don’t have kids there are still some reasons that thoughts of life insurance should be floating around your head though.
Perhaps your siblings have children who may one day depend on you financially? Or perhaps your siblings themselves often ask you for money or to buy them things? If not your siblings, it could be cousins, aunts and uncles or even parents and grandparents. The bottom line is that if you have any family members or loved ones who depend on you financially - or who will in future – then life insurance can make sure that they’re taken care of if something happens to you.
So who needs life insurance?
It turns out that it isn’t just the breadwinner of the household who needs life insurance. Young people, old people, the employed, the stay-at-home parents and even the charitable souls who want to leave something to a non-profit can all benefit from having insurance. Even retirees might need life cover in some instance. If you want to make sure that those closest to you are given something to ease the financial burden and help make their lives easier in your absence, then it’s simple: you need life insurance.