When should you buy Life Insurance?

Life Insurance.  Uhg.  Bo-ring! No one wants to think about it and everyone jokes "What's in it for me?"  When I'm dead and gone what will I care?  Most people just put it off and say they'll get it later, which is usually too late.  We insure our cars and houses, but we over-look insuring the most important asset of all - ourselves!  We buy auto and home insurance for what might happen.  We buy life insurance for what will happen! 

True story:  Recently had a lady contact my office for life insurance.  She's in her 40's with two young sons.  Her husband, also in his 40's, recently had a heart attack and died (how many times have we heard stories like this?).  He had changed jobs and had not picked up the group life insurance offered by the company.  He had no other life insurance.  ZERO.  Needless to say, she was devastated.  Since her husband was the major bread winner, she will be struggling.  She now has a major policy on herself and smaller policies on her two sons.  She wanted to make sure if the unforeseen happened to her, her sons would be taken care of. 

Another true story:  Had a 78 yr old lady call my office wanting a small burial policy ($5000).  No big deal, right?  She was diabetic and had high blood pressure.  I called underwriting and they said no way due to her age and existing medical issues.  She will likely be turned down by most insurers, or if some company will write it, the premiums will be sky high.  She has no money and lives with her daughter.  So when she goes to meet the Lord (hopefully), someone (daughter) will have to come up with several thousand dollars for burial costs. 

So when should you buy Life Insurance?  As soon as possible.  Life insurance rates are based on your current age and physical condition.  Start adding on things like high cholesterol, diabetes, high blood pressure, etc., and the rates start climbing.  If you buy life insurance at an early age and in good health, you lock in the best rates (usually dirt cheap).  Wait till you are 45 and have some medical issues, and you will be paying a lot more for less coverage just to make it affordable.  

One more true story:  I had a young lady in her mid 20's contact me wanting life insurance because she was about to have a major operation.  Married with one young child.  Sorry, couldn't help her.  It is unlikely any company will insure her until after her operation and she has completely recovered.  Kinda like car insurance, you can't have an accident and then go buy auto insurance.  It doesn't work that way.  Plus, if she goes to buy life insurance after the operation, any company will want to know all about the surgery, which will probably result in her getting higher rates, especially if there's a possibility of a reoccurring condition.  

I could go on and on.  I've heard every excuse:  I can't afford it; I'll wait till I lose some weight; I've got enough (hey dude, $25,000 is plenty for my stay-at-home wife and 3 small kids, right?); I'll wait till next year; I'll wait till I quit smoking; I've got it through my job (yes, until you get laid off or change jobs with no benefits, and then you are 50 yrs old with high cholesterol). 

Okay, one more story.  I still laugh about this.  Earlier this year, a lady got out of her car at my office with cigarette in hand.  She stood in front of my office door untill she finished her cigarette, then smashed it out on the ground and came in.  She was in her 50's, over weight, and obviously a tobacco user.  She needed life insurance but quickly bawked at the rate and left.  Let's say she smokes 1 pack a day at $3 a pack (which may be cheap, I don't know).  That translates to $1095 per year, just on cigarettes.  The yearly amount on the life insurance?  About $550.  But, we all have our own priorities, don't we? 

So go ahead and look at your life insurance coverage for you, your spouse, your kids, and talk to your agent to make sure you are properly covered.