The right time to buy life insurance varies from person to person, depending on family and financial circumstances.
First and foremost, if you have others that depend on your income, who would be heavily impacted by the financial burden of your death, life insurance is needed to help replace your income so that your dependents are able to continue to pay the bills and maintain their lifestyle.
Second of all, if you have large amounts of debt- such as a mortgage on a home or unpaid loans, the responsibility to repay these amounts would fall on your survivors in the event of your death.
Many people don’t start to think about life insurance until they are well into their 30s, but actually, the younger you are when you purchase your life insurance plan, the better. Your life insurance premium depends on a number of factors including your age, lifestyle habits, and medical history. Generally speaking, your 20s are a time when your health history is probably the best that it will ever be, making you a low-risk in the health category- meaning you qualify to lock in at a lower premium because the insurer is taking on less risk. As you age, you are at a greater risk of developing health issues that could make your insurance plan more expensive, or even disqualify you from being able to purchase a plan at all.
It’s important to remember that life insurance is not a one-time purchase. A physician should continue to revisit their plan as their lifestyle changes – such as if they have more children, take on more debt, or if their income has significantly increased. Their financial advisor will have a deep understanding of their personal circumstances and can assist them in deciding when the time is right, and the best plan suited for their needs.
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