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When Does Affordable Life Insurance Makes Sense?

Finding cheap life insurance probably isn’t a major concern for you if you’re young and healthy. However, you never know when tragedy could strike. If you were to die tomorrow, would your family have enough money to pay your bills and continue to have the same quality of life? You want to make sure they’ll have the financial comfort they need while they’re grieving your loss.

Of course, you can’t predict when and where you’ll die. So when is buying cheap life insurance a good idea? Are there certain times in your life when it makes more sense? We’ll take a look at that below so you can get a better understanding of when it might be best for you to buy life insurance.

The Times When Buying Life Insurance Makes the Most Sense

Investing in a life insurance policy is always a good idea! That said, there are certain times when it is in your best interest to secure a policy. Some of the top times you might want to look into cheap life insurance are as follows.

When Someone Else Is Depending on Your Income

The number one reason to get life insurance is if someone else is relying on your income. If you have children or a spouse that you take care of, having a life insurance policy means they’ll be able to pay the bills after you’re gone.

Remember, life insurance isn’t about you. It’s about your loved ones. Purchasing this coverage gives your children enough money for their food, lodging, and education. And for your spouse, it gives them some time to grieve while looking for a new job and paying for childcare. Even if you aren’t married with kids, having life insurance offers your parents and siblings extra comfort, especially if they rely on you for care.

When You’re Young

You might think you don’t need life insurance when you’re young. That’s because your risk of dying is lower compared to an older person. So why waste your money early in life on a policy you might not use for 50 to 60 years?

The answer is simple. Buying life insurance at a younger age means you’ll pay far less in premium costs. Since you have a lower risk of dying, life insurance companies will charge you less for coverage. And the good news – you’re often able to lock in this premium for life. That way, when you are 60 or 70, you’ll have extremely affordable life insurance coverage compared to someone who might be looking to buy their first policy.

And unfortunately, we can’t predict the future. While your odds of dying young are low, anything is possible. When coverage is so cheap, it makes sense to get a policy just for peace of mind.

When You’re Healthy

Again, if you’re healthy, you might be thinking – why would I want to buy life insurance? But the same principle applies as it does with age. When you’re healthy, your premiums will be less.

And health isn’t predictable like age. You won’t suddenly wake up 50 years older one day, but you could contract a deadly disease that wasn’t on your radar. Health problems can often develop unexpectedly and suddenly. If this happens, getting life insurance coverage will be way more expensive. And since you may need all the money you have for medical payments, life insurance might not be a top priority at that point.

That’s why it’s best to have life insurance from the start. You’ll have peace of mind for your family no matter what happens with your health. And you won’t have to be rushing around trying to find an affordable policy once you have an underlying condition.

young atlethic woman smiling with green smoothie and looking at cell phone for cheap life insurance

When You Have a Mortgage

Mortgages are one of the most expensive purchases a person makes in their lifetime. If you die before paying yours off, that burden will fall onto the shoulders of your partner or loved ones. They may not be able to afford the payments on their own, meaning they’ll quickly drop into debt and put their livelihood at risk.

Figuring out just how much coverage you might need to pay off your house can be tricky. You’ll want to make sure there’s enough to cover most of the mortgage cost. That said, if you’re splitting the mortgage payments with a spouse, it’s a good idea to make sure your life insurance payouts will at least have enough to cover your monthly contribution.

Even if they decide to sell the house once you’re gone, that process isn’t cheap. They’ll need cash to make minor repairs and pay for a real estate agent’s help. Life insurance money can help foot these bills.

When You Own a Business

Opening up your own business comes with a lot of responsibility. In addition to managing products and dealing with customers, you also have to start thinking about an untimely death. That’s especially true if you started your company with a partner. If you’re suddenly gone, would the business have enough capital to survive? Or would it put your partner in a financially risky place because they’d suddenly be responsible for all of the company’s finances?

Taking out a life insurance policy with your partner as a beneficiary is a good idea in this scenario. That way, they’ll be able to pay off business debts, pay employees, and keep the company running smoothly so they don’t go into financial ruin. Being an entrepreneur is tough enough on its own, so you don’t need to complicate things with the risk of death.

When You Don’t Have a Ton of Savings

If you’re like the average American, you may also carry some debt. According to the 2019 Survey of Consumer Finances by the Federal Reserve, 76.6% of U.S. families had some kind of debt. And the average debt per person was $92,727. Having a mortgage was the biggest expense on the list, but student loans and HELOC loans were also major issues.

Typically, your heirs would use your estate to pay off these debts. But if you don’t have enough money, they may be held responsible for coming up with enough cash to square things off. You certainly don’t want to put them in this position, which is why life insurance can help.

Even if you’re not in debt, think about the costs of your funeral. These can be several thousand dollars, which is a lot of cash to pay upfront if your family is strapped. Even if they can afford it, it might wipe out their emergency fund and leave them vulnerable.

In both cases, life insurance gives them the capital they need to settle their affairs once and for all. They can pay off all your loans in full so that they can move on with their lives.

Are There Times When Buying Life Insurance Might Not Be as Important?

Buying life insurance is never a bad thing. It will always work to protect your loved ones after you pass. That said, if you’re currently young, single, don’t have debt, and don’t have any close family, you could potentially put your money elsewhere for now. Just keep in mind, delaying the purchase of life insurance could mean you’ll pay more in the future when you do decide to get a plan.

So while it’s possible to avoid buying life insurance, it’s not recommended. It’s often best to buy a cheap life insurance policy for those just-in-case scenarios. After all, is life insurance really going to be at the top of your mind when you purchase your first house or get married? Buying a policy now means you won’t have to worry about it later.

Choosing the Cheap Life Insurance Right for You

When you do decide it’s time to buy a life insurance policy, there are two main options for you to choose from: whole life insurance and term life insurance.

With whole life insurance, you’re guaranteed coverage for life as long as you pay your premiums. Even if your health declines or you get old, your coverage can’t be canceled. Best of all, whole life policies let you build cash value that you can borrow while you’re still alive. Think of this as an emergency nest egg you can use if you’re facing financial hardship.

Term life insurance, on the other hand, is a shorter form of coverage. You’ll pick a term length, and coverage will only last for that amount of time. While standard lengths are 10, 15, 20, and 30 years, you may be able to negotiate other lengths depending on your needs. Because you’re locked into a specific term only, term life insurance is a cheaper option than whole life. Therefore, it’s a better option if you’re truly seeking the most affordable life insurance.

Find Low-Cost Life Insurance With Freeway

Life insurance is a good decision regardless of your age. Freeway Insurance is here to help you find cheap coverage that fits your needs. Start your life insurance quote online, over the phone, or at one of our offices near you.

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