Life insurance is the best way to make sure that your family is not financially burdened after you pass. However, many people in California are unsure of when they should plan to buy a life insurance policy.
Each person’s life insurance needs are different.
So there is not a specific age where it is best. A general rule of thumb is that if others depend on you financially like your children, spouse, or elderly relatives, it’s a good idea to start investing now.
Most people think of life insurance as coverage to purchase when they begin to age. It’s usually part of their end-of-life planning. However, as you get older the premium rates increase. This can be a challenge in retirement when you are living on a fixed budget.
In fact, premiums tend to increase every year you age by 8-10%. Further, if you develop health problems as you age, it could further increase your premiums and in some cases, reduce your ability to qualify. So it’s a smart idea to consider investing as soon as possible, as opposed to waiting for a certain age.
Term life insurance is a coverage design for a designated time. This means that at some point in the future the insurance coverage will expire. Term life insurance is a great option for people with dependents to cover the period while they are financially supporting them. It is also a great option for couples that have debt like a mortgage, credit card debt, or even student loans. This will ensure that your passing does not impact people who depend on you financially. Term life insurance is often packaged with permanent life insurance to add an extra cushion when your family most needs your financial support.
Permanent life insurance does not expire and instead lasts your full lifetime. Permanent life insurance is a good idea for the long term to ensure that you not only cover your expenses but may pass money onto your family. It is an essential financial piece of end of life planning. Permanent life insurance also has a cash value that is tax deferred. This cash value can be cashed out to cover other expenses. So it’s also something to consider for your overall financial planning.
If you decide that you are ready to purchase a life insurance policy, you should speak to an insurance agent. It’s also a good idea to speak with your financial planner. Together, you can review your options and find a plan that makes sense for your needs.
Panorama works with multiple insurance carriers and can help find you a life insurance policy that meets your financial needs and goals.
We’ll work with you to provide a variety of quotes and package options. That way you can trust that when you pass, your family will be taken care of financially.
Give us a call to get started at 818-781-6630.