The question of when to buy life insurance might seem as complicated as assembling a piece of IKEA furniture without instructions. Yet determining the best time for life insurance is actually more straightforward than you think. The secret is that there’s genuinely no bad time to make this important investment — but your age and financial situation will determine the type of insurance you should get.

Here’s a quick guide on the type of life insurance you’ll probably want to consider at different periods of your life.

Permanent Life Insurance is Ideal For All Stages of Life

No matter your age, no matter your stage of life, permanent life insurance is the way to go.

In the lively phase of your career in your mid-20s to early 30s, you’re probably navigating professional waters and facing the financial whirlwind of student loans and the dream of homeownership. While your salary may not exactly be desirable at this point, the silver lining is that you’re young and healthy – the golden age for more affordable premiums.

Purchasing a policy during this time is a prudent move, especially if you’ve co-signed debts with parents or a spouse. If you were to die suddenly, your loved ones wouldn’t bear the burden of transferred debt.

If the cost of permanent life insurance feels daunting at this stage, you could always consider term life insurance. It’s temporary, budget-friendly, and can even be renewed or eventually converted to a permanent policy.

As you ascend the career ladder, life’s financial responsibilities grow — bills multiply, and families expand. If you took the plunge into term life insurance during your 20s, it might be time to consider a sequel — permanent life insurance. It’s pricier but a wise investment. While term insurance becomes more expensive each time you renew, permanent policies offer a fixed rate, a financial oasis as you age.

By purchasing a policy at 35, your premiums at 55 will be below market value for someone your age.

Approaching retirement, life insurance continues to be an ideal investment option. Most companies extend the offer of permanent life insurance until age 80. With monthly expenses potentially dwindling, you can likely afford a more comprehensive plan.

Permanent life insurance policies can allow you to accrue cash value — as this value grows, you can withdraw or borrow against this amount as a source of income in retirement.

Buying Life Insurance is Now Easier Than Ever

The pandemic era ushered in a new age of convenience, bidding farewell to traditional (and sometimes invasive) paramedical exams in favour of easy (and welcoming) phone and Zoom interviews. The once-daunting process now feels more like a casual chat with a financial confidante.

The major providers adapted to the times, suspending face-to-face exams during the peak of the pandemic. Fortunately, many increased coverage limits without the need for bodily fluid tests.

Protect Your Loved Ones and Ensure a Comfy Retirement

Life insurance isn’t just a safety net; it’s a tool you can use to improve your life when your earning potential dwindles. While navigating the complexities of adulthood, view life insurance not as a burden but as an ally accompanying you on your journey.

Interested in learning more about your life insurance options? We can help you figure out what makes sense for you.