When should a person typically consider buying life insurance?

Question

Yahoo! Canada Answers staff note: This question is asked by Gregory Ellis, co-founder of the the insurance shopping service kanetix.ca. Visit http://www.kanetix.ca/YAHOO_answers for more information.

Answer 1

I've always heard that if you marry or have children, that it is time to get life insurance, in order that they have something to fall back on should you pass away.

Answer 2

Buy life insurance when you have dependants, large credit debt to cover such as a mortgage or new car, or if you would like to leave something behind and have not been successful at saving.   Also, only buy term so it only covers the time frame of most need.  Whole life is too expensive for what you get.

Answer 3

I believe a parent should have one for a child up to the time that child has pursued their career and begin working (this child/becomes adult ultimately is guided to pursue his/her financial  and insurance responsibilities) Therefore this person is relatively 23/24 years old independently.

Answer 4

When you can AFFORD to pay. Most low paying jobs just do not pay enough to warrent forking out an extra $100 a month for life insurance.

Answer 5

as soon as you work and can afford to buy it

Answer 6

I guess as soon as you have kids

I can tell you one thing for sure, I wouldn't have insurance with you again

Answer 7

hopefully before you die

Answer 8

As soon  as you start a permanent job or regular job all should buy insurance to ensure your remains are looked after and money left over to pay any out standing bills.

As you advance in age, marriage, children you should get more insurance on their behalf.  See an insurance person--they are like hawks but some are very good in helping you prepare for an early demise and help you safe for the future.

Answer 9

Life insurance, as with others, is a way of having satbility of finances or assets. It is realy a wager between insurer and client: you bet a small amount a "loss" or event will occur and the insurer bets that it won't in the amount of insurance to be paid if it does.  The policy is like a continuous lottery ticket for a specified period, with premium payments into a common pool to cover the risk or chances of a payout.  Far more premiums are needed than payouts for plans to work.

Insurance can be a very flexible way to establish an estate, build cash savings, rely on security against losses and all those features advertised.  Buy it when there are assets to insure or risk of loss of health, limb or life.  The criterion is "when" would that be and how "great" is the risk? The decision is usually whether premiums are affordable or can losses be covered from resources, should one look at buying life insurance.  

Strategy in the matter of loss of life is a tough call. Basically, the level of risk of payout determines the premiums. However, advancing age brings  higher premiums.  If  one is too  insure, perhaps the  sooner the better is best for many reasons, besides lower premium costs.

In a time when credit is relied upon, life insurance is even more important to assure obligations can be met.  So, the more obligations and responsibilities one has the more reassuring it  is to have life insurance...if even for only those oblgations.

Again, life insurance is really a bit of an estate building plan.

Guarding against untimely costs and losses at death as well as eventual death is a way to benefit from life insurance for peace of mind. It is a responsible way to save heirs from

financial burdens as well.

One might say: "DON'T LEAVE LIFE WITHOUT IT."

Answer 10

I think when you are young it's good to think about, especially if you have loans out for cars or schools so if something should happen to you, you aren't leaving your loved ones with your debts. You can also get a better rate sometimes if you have multiple insurance policies for different things from the same provider. Another time to think about life insurance would be when you are seriously involved with someone - dating or engaged or married, definitely. That is another person who, if you are financially tied, could potentially end up paying back your debt when you're gone so you want to think about not leaving that with them. That's what I think and what my provider suggested to me, but I don't know what is widely believed.

Answer 11

Hi Doc!

IMO I'd say that is better to be insured because you'll never know what tomorrow will bring us

have a nice day doc!

Mr. Ramos

From Vancouver, BC

Answer 12

While you can still get it and DEFINITELY before you get sick or injured.  No one will insure you after that, not for anything that's worth anything.  And if you smoke, forget it.

It's never too early to have life insurance but of course the minute you're left without it will be the time you will come to need it.

And your kids, insure them at school.  Those broken teeth or arms and legs can come back to haunt you in future.

These days with all the diseases out there...you just never know, no one is too young for protection and you should think of all these factors and make sure you're covered for them.

Now whether you can afford to is another question altogether and whether they will cover you for such things, well make sure you have a good magnifying glass for the fine print.

Answer 13

as soon as possible

Think of the loved ones

Answer 14

now..

Answer 15

the sooner is better. Why, because of the price. Younger you are cheaper it is. You can complete more easily when you need. But as soon as you have a family. It is a good thing to buy one. You protect your family this way.

But don't buy with out a good advise. Be sure that your insurance policy won't drop value at 65 or that you will have to pay a high premium all your life. It has to grow with years not much at first but as time past it will grow more and more.

I am not an expert but try different agent and insurance company before you buy. See what they offer and at which price.  But be sure of what you want and what you need.

Answer 16

insurance is a simple game, they are betting your going to die and your betting you wont. i can tell you if you are looking to spend some real stupid money i will take your bet, i will give you a million dollars of insurance if you ever get killed in  an accident. just think of the odds, 300 million Americans

Motor vehicle 41,200

Falls 16,600

Poisoning* 8,400

Drowning 4,100

Fires and burns 3,700

Divide that amount into 300 million and you would never have to worry again.  so insurance is no gamble at least when they check out your medical record and turn your claim down because your doctor wrote you had high blood pressure and dint tell you. or you lied in order to be accepted. they don't pay for persons who have died of Cancer who didn't report about a bad PSA test.  do yourself a favour buy real estate don't waste your money on a national scam, If you still insist on getting insurance's go to a reputable Life insurer and get all the test that will satisfy them and then sit and wait until you die. even mortgage home insurance fails most times. they don't say anything until one dies, then the search your records and find your not eligible because of one thing that may not have anything to do with your death. and never pay for insurance on your personal credit line, a super waste of money, people should always have a financial adviser most banks have them and the cost is most times free.

Answer 17

when they have an "insureable interest" ie a dependant child spouse , parent or other OR debts that would not be covered upon death.

typically required for a family situation

$$ for final expenses

$$ for kids education

$$ for debts

$$ for income replacement

Answer 18

Shortly before you drop dead.

Answer 19

You need to have life insurance when your Liabilities exceed your Assets.

Answer 20

I advised my children to open one as soon as they started work

Then a superannuation one as well

That being the most important one when you retire

Answer 21

Are you soliciting new slogan for your company? There is already a good one floating around.

Buying life insurance is not for the insured, it's for the one(s) he / she leaves behind.

Answer 22

Before they jump.

Answer 23

I'm taking my cue from the Author of The Wealthy Barber.

The answer is "When you have something to protect"..home, family, income. The author (Chilton) believes -and I now agree, too late in my life - that when you are young, have your parents add a cheap rider to their insurance to cover your burial costs if such a thing is needed. Only when you have a spouse or family to protect if you die, should you buy insurance.

He also believes that you should only buy term insurance. It's cheaper and does the trick. "Whole Life" is basically lending the insurance company your money for decades which they invest and give you back only a partial amount- which is, relative to the amount you put in - fairly small.

Here's the CATCH.What do you do with the money you save? You MUST be disciplined and invest it in LONG TERM investments, just like the insurance co was going to. Everyone can lose in short term investments depending on the financial cycles at work. This can get complicated so consult an independent financial adviser. Or 2 or 3, before signing up. Find out how they make their money and what costs there will be to you. Some will have some products they will push for their commission- that's why you interview multiple advisers.

Answer 24

when ill!

Answer 25

when you are just born

Answer 26

i think the soon the better

Answer 27

when you need it like a change in your life new job . getting married. birth  of a child

Answer 28

I think a person should by life insurance when he or she gets married, or is in a committed relationship with another person,or if they have children. If children are involved, and the parents are not married, I think they still should get life insurance on each other in case one parent dies, the other would have some way to support the children and a way to pay for funeral expenses.

      In some states the spouse is legally responsible for any debts left behind.  Life insurance can be used to pay off those debts, or to  put the money in a trust fund for a child's college education.

      If I had gotten myself into a situation with children and a "dead-beat dad", I'd take some insurance out on him, for sure.  You'd get money from him sooner or later. Especially if he was living the "gangsta" life, or liked to indulge in alcohol or drugs. At least the kids would have some money to go to school with, or something to show for his sorry a**!

Answer 29

ummm..thats a hard one...but probably before you die ...what a dumb question

Answer 30

technically life insurance should be purchased once an individual enter the workforce and start to accumulate debt..

usually at a young age, 18 yrs old  up, and the insurance should be sufficient enought to cover unexpected events.

Seek a good adviser that understand your need and not their

commission.

Answer 31

I think that at any age is a good age to get insurance, but maybe 18 seems to be a good generalized age to start insurance. Most people are out working, or trying to start a life for themselves. It is best to get insurance while you are young and usually healthy.