There isn’t a set date or time that life insurance should be explored, but understanding your needs and goals is key on the front end.
When purchasing a life insurance policy, choosing a plan sooner than later is usually best as you can look at your protection for a duration of time.
When it comes to life insurance, there are three types: term life insurance, universal life insurance, and whole life insurance.
There are three main types of life insurance and selecting the right option will depend on your needs and overall goals.
Term Life insurance
This type of life insurance is based on a duration of years. For example, protection may be allocated to 10 or 20 years. You select a period of time, and your premium payment stays the same for this duration. This option is sometimes more cost-effective which makes it a popular choice for many people.
Universal Life Insurance
With universal life insurance, you can raise or lower your premium as it revolves around lifetime coverage. It is a more versatile option, but it may have higher premiums when compared to term life insurance.
Whole Life Insurance
Whole life insurance provides lifetime coverage. In most scenarios, premiums remain the same and are relatively higher than term life insurance.
Like other insurance plans, life insurance works in a similar fashion.
In short, life insurance is a contract between you and an insurance company. You will pay premium payments within an agreed-upon term and in return, the insurance company will pay a lump sum also known as a “death benefit” to your beneficiaries after your death
You can choose a plan at any time, as long as you are 18 years old or older. While you might not think about life insurance when you are younger, choosing a plan at an early age is beneficial.