Why Wait to Purchase an Individual Life Insurance Policy?

In life, we all have a tendency to put some things on the “backburner.” We believe there are some responsibilities that can be dealt with at a later date, without the thought of consequences. Unfortunately, too many people are considering individual life insurance as an afterthought.

Why People Procrastinate about Buying Individual Life Insurance?

There are two main reasons why people delay in purchasing individual life insurance. For one, most individuals do not like to think about death, especially their own. Even if you have a spouse and or children and know you need additional life insurance coverage, you might delay calling your insurance agent or financial advisor, for the buying of life insurance confirms your death, at a future date, is a certainty. It can be troubling to think about death, but what happens if you do not buy that life insurance policy? Will your spouse need to sell the house and move into an affordable apartment and, at the same time, will the children be removed from private school because the family can no longer afford the tuition, without your income?

On the other hand, many individuals feel confident that their employer sponsored group life insurance provides enough coverage. In most cases, you are allowed to select a group life insurance face amount that is a multiple of your yearly salary (e.g. 1 to 5 times your yearly salary). Some employers will allow you to purchase additional coverage by showing evidence of insurability. Nevertheless, the amount of group life insurance that you are eligible to get through your employer may not satisfy your desire to pay off the mortgage, cars, student loans, and children’s future college costs, in the event of your early demise.

Buy Life Insurance Now; Don’t Worry About Insurability Later!

Your current good health is a primary reason to buy life insurance. Most people do not plan to get diabetes or some other chronic illness. But if you are stricken with a chronic illness, your chances of getting approved for a standard life insurance policy (e.g. term life, whole life, universal life, etc.) are slim; therefore, in this case, your life insurance options may be limited to graded life insurance, which is normally issued in a small face amount (i.e. $10,000) and requires the insured to live at least two years after the policy is issued in order for the beneficiary to receive the policy’s full face value. Otherwise your beneficiary will receive a lesser amount, in the event of your demise before the policy's two years are completed, as determined by the provisions of the graded life insurance policy.

Usually, life insurance premiums are cheaper in your twenties than in your forties, because life insurance companies can expect a higher morality (death) rate among forty years olds as opposed to twenty year olds, based on the statistical data gathered by the company’s actuaries. As a result, if the price of life insurance concerns you, then you need to buy life insurance now, so that you can lock in the premium price.

Conclusion

Why wait to buy individual life insurance? How will your family survive with the loss of your income? If you know you need the additional life insurance coverage, do not wait because the price will not likely get any cheaper, and there is always the possibility that you will be uninsurable in the future. You owe it to your family to call your insurance agent or financial advisor today, and schedule an appointment to talk about individual life insurance.

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