Understanding the timing of getting life insurance
Life Insurance
Understanding the timing of getting life insurance
By Leon Song
We know life insurance is about protection and ensuring the safety of you and your family, these are always first. Financial management is second. You might ask, when is the best time to get life insurance? Let's see the effectiveness in different stages of life and what the timing of getting life insurance is.
Infancy and Childhood
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When a new baby is born or when a child is 10 years old or under, should people buy life insurance for him or her? The answer is yes. If you want more protection, or you want to save and manage money, and increase your cash after satisfying the basic quality of life, life insurance with financial management functions, such as IUL will be a very good choice. Because IUL can guarantee the bottom, is very stable, and suitable for long-term investment holding.
Buying insurance for your child is very simple and fast, and the cost is low. Generally speaking, the younger the child, the lower the premium. The specific situation of each person and family will be different, so our policy is different from person to person, different people have different designs. For example, if the monthly premium is around 200 or 300 USD (equivalent to an HOA property management fee for a good community), you can get a higher face amount of more than $500,000, often 1 million USD, and you can also cover all the benefits.
The general rule is that the younger the children, the cheaper the premium, and the longer the accumulated cash value rolls over, the more obvious the leverage effect is. Therefore, the wealth accumulated by the insurance policy is relatively large, which makes it easier to help children realize their wishes and dreams at all stages of life. For instance, your child's insurance policy can help pay for various education expenses, especially college tuition, wedding expenses, their first housing, and medical fees if they were effected with an eligible disease. Besides, there are retirement funds, or to lay the foundation for the future of your own business/company.
In short, purchase during this period can achieve the financial support that you want to achieve at all stages of life. Many families have bought insurance for infants and young children, which is a good habit: we encourage you to make a long-term life plan early.
Adolescence
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To buy life insurance for teenagers older than 10 years old and younger than 20 years old, generally speaking, the cost is a little more expensive than that in childhood, but it is lower than the cost of adults. At this time, it is more difficult to use the policy to achieve financial support for various educational expenses, including university expenses, especially if the child is around 15 years old, because by then, the time to start depositing money into the policy to the university is too short, and the wealth accumulation is not yet revealed. However, the various financial support mentioned above can be achieved in later life stages. In short, life insurance can be the foundation of the financial future.
Early Adulthood
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For adults under the age of 45, a family is often most precious. If you want to take care of your family, life insurance is a powerful financial tool you could use to protect your family's future. In addition, you could use the insurance policy to get a better retirement plan. Likewise, you should consider buying an annuity at this time.
The purpose of buying life insurance during this period is mainly to protect your loved ones who depend on you, especially for those whose main source of income goes to their family. Laying a solid economic foundation for future life and maintaining what is vital to you and your family will help you achieve your goals at all stages of life.
In my opinion, over 40 years of age, the cost of the policy will show a relatively significant increase, so here I strongly recommend that if the economic conditions are suitable, then the sooner you purchase life insurance, the more cost-effective it will be.
Middle Adulthood
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The middle-aged period generally refers to 45 years old and under 60 years old. From my point of view, no more than 50 years old, it is convenient to buy life insurance, but the cost is a little high. There is a problem, it will be a burden for the average middle-class family. If you are over 50, the cost is too high, unless the financial freedom is another matter. An example: if a middle-aged person close to 50 years old buys life insurance, it usually costs more than 1,000 USD a month and more than 10,000 USD a year.
In particular, the National Life Group (NLG) life insurance is recommended here. It has Living Benefits [*] and meets the requirements of the end-stage. These benefits are triggered if you experience a qualifying terminal, chronic or critical illness. This includes any qualifying event triggered by Coronavirus (COVID-19).
This also includes long-term care and adult daycare. In short, optional Accelerated Benefit Riders (ABRs) offered at no-additional cost, can provide access to your death benefit during your lifetime. These riders are available on most of our life insurance offerings.
Old Age
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Old age is the harvest period of life, at this time, you should put down your career and enjoy life, so it is particularly important to carry out financial planning early to ensure a higher retirement plan.
National Life Insurance Group (NLG) can provide family protection, medical treatment, and old-age care. Once you meet the eligibility to your death benefit, there are no restrictions on how you use ABR proceeds and may be used for any expense, including medical expenses, additional care, home renovations, business expenses, etc. The uses of ABR benefits are not limited with the exception that ABR proceeds for chronic illness in the state of Massachusetts can only be used to pay for expenses incurred for qualified long-term care services.
Living Satisfied
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In short, the timing of obtaining life insurance is demand. In fact, everyone needs one, and at the same time, considering their current economic situation, they also need a plan for ideal financial support. One more protection, one more financial management, for yourself and your family. We will tailor-make for each potential customer and design a policy that best meets the customer's needs so that everyone can live Satisfied. Especially during the period of the new coronavirus pandemic, let us pay more attention to health, disease and life insurance. On this topic, please read my next blog: The impact of the COVID-19 outbreak on life insurance.
If you would like to learn more information, please visit our website: www.lsefinance.com. Please feel free to contact us if you have any questions.
Note:
* NLG: There are additional benefits associated with our life insurance and annuity solutions provided by optional riders. We call them Living Benefits, and we have been providing them since 1937. Based on the product, living benefits can provide benefits should a qualifying terminal, chronic or critical illness or critical injury occur, or if your desire is to have an income that you cannot outlive.
**All examples used here for illustrative purpose only
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