When should I buy life insurance?

What is life insurance coverage and is it necessary?

September is life insurance awareness month! It’s that time of year to take a closer look at your life insurance coverage and to potentially consider getting a policy if you don’t have one already. But how do you know if and when you should purchase coverage? Waiting too long to buy a policy could cost you more money in the long run, so getting coverage at the right time is essential.

How to know when to purchase life insurance

The best age to buy a policy really depends on the person and life circumstances, but generally it’s a good idea to get a policy as soon as you can. It’s also best to get a policy that is best for your age. Life insurance protects your loved ones for the future and there are many types of coverage available.

Some of the most common stages in life where someone would purchase a policy are:

Before getting married or having children
After getting married
After having children
After purchasing a home
After starting a business (if you have partner or co-owners)

What types of life insurance are there?

There are 5 main types of life insurance, including term, whole, universal, variable and burial. Term insurance is great for most people and it’s often the least expensive. Many people purchase this type of insurance to cover the length of time they are working.

Whole life insurance is for your entire life and is often more expensive. Once you set it up you really don’t have to worry about it, which is one of the many benefits of this type of insurance.

Universal life insurance includes a few different types, but in general this form of life insurance allows you to change you premiums within the set limits and it has a cash value element.

Variable life insurance is connected with bonds, mutual funds and other types of investment accounts. Premiums on these polices are fixed, the death benefit is guaranteed and this type of insurance does require some managing.

Burial life insurance is for those who would like to cover their funeral or other end-of-life expenses. It is one way to help your family pay for expenses, including outstanding medical bills. Coverage is often capped at a lower amount, but this can be a great option for those looking for this type of policy.

How to buy a life insurance policy

First and foremost, it’s important to shop around for the best coverage and rates. Determine how much coverage you’d like (how much you’d like your beneficiaries to receive) and apply for a policy that matches your needs. Often, applicants are required to detail health history and potentially have a medical exam.

Explore life insurance options at Fox Communities Credit Union

Our friendly, knowledgeable team is here to help you find the coverage that works best for you. Choose from a variety of TruStage Life Insurance policy options, including whole life, term life and guaranteed acceptance. Get instant online quotes based on your budget today!