When should I buy life insurance?

Answers:2   |   LastUpdateAt:2011-12-09 07:19:35  

Question
Charlie
Asked at 2011-12-08 17:20:56
When should I buy life insurance ? A financial experts consider a life insurance policy is the cornerstone of financial planning. Why?
Answer1AdelaAnswered at 2011-12-08 17:31:36
Buy

nowLife insurance premiums increase dramatically as you age. If you purchase permanent life insurance while you are younger and healthy (presumably), you can take advantage of lower rates. Your premium costs may increase, but these increases are strictly regulated. Cash value life insurance also offers a kind of "forced savings" and the policy accumulates tax-deferred over time. While the purchase is less offers the additional benefit of extra time in which the cash value can grow.

buying life insurance, while more young people may be especially important if you are in a group at high risk for any disease or medical condition that can make you uninsurable. If you decide to buy insurance for this reason, ask about adding a guaranteed insurability rider to your policy. This corridor which guarantees the right to purchase additional insurance at specified times, without evidence of insurability. Thus, if you get married, raise a family, or take on other responsibilities, you can buy the insurance you need without having to worry about if you are denied coverage.Buying term life insurance while you are younger you its advantages as well. As the cash value insurance, the life insurance premiums will increase significantly as you age. By buying now, you can block low premium for the duration of the policy. If you decide to buy term insurance, look for a policy with a renewal clause. This clause allows you to renew the policy without having to take a medical exam or proof of insurability. However, premiums are likely to increase every time you renew your policy as a result of declining life expectancy.Buy laterInstead buying life insurance now, you may decide to postpone the purchase until later, perhaps when you have a family and more responsibilities. For now, you might want to put that money into other investments that have the potential to provide greater returns.In order to fully exploit the benefits of this strategy, you must have the financial discipline necessary to invest their savings in a premium a regular basis. Or, instead of relying on their ability to invest faithfully each month, arrangements for which funds are transferred automatically from your bank account to your investment account choice.Keep in mind, however, that although this strategy offers the possibility of return on investment, these returns are not guaranteed. In addition, it would be prudent to delay the purchase of any life insurance if you have children or other dependents who would suffer financially as a result of his untimely death.

Answer2HaydeAnswered at 2011-12-09 07:19:35

buy life insurance depends on your individual circumstances and personality than any hard and fast rules . < / P >

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