If you are a young, twenty-something, chances are you’ve not really thought about buying life insurance, especially if you don’t have dependents. The thing is, there are plenty of reasons to buy life insurance even if you don’t have dependents. For one, if anything untimely happens to you, the payout from your policy will ensure your family has the money to pay for your end-of-life expenses. So, although there is no optimal age to buy life insurance, let’s take a look at a few scenarios when you may want to consider buying life insurance.
When you are a young adult
If you are a young, single adult without any dependents, you can probably just buy a life insurance policy with coverage between $10,000-$20,000. However, since you will likely be able to buy life insurance for cheap at this age, you may want to also account for your future coverage needs.
When you are starting a family
If you are starting a family, it’s important to purchase life insurance. Remember that if anything happens to you, your children may be left in a lurch, financially speaking. So, ensure that you take the financial needs of your family into account and purchase a policy with sufficient coverage.
When you have a mortgage
If you pass away without paying your debts or mortgage, your estate will be used to repay the debt, leaving your loved ones without much to inherit. So, if you have any type of debt, you should buy life insurance.
When your employer offers life insurance
While employer-sponsored life insurance can serve as supplemental insurance, it’s best to purchase your life insurance policy. Keep in mind that your employer will only offer coverage for as long as you stay employed at the same company. So, if you do lose your job, you lose the coverage as well.
When you are retired
As long as you don’t have any debts or people who are financial dependents on you, you may not need to purchase life insurance when you are retired. However, if you still have family that is financially dependent on you, it’s a good idea to have life insurance coverage.