Life Insurance Basics
Today's Rate Will Be Your Best Rate
Purchasing life insurance early typically sets you up for your
best rates. The cost of purchasing life insurance can increase
by 8% to 12%, on average, for each year you delay.
However,
the moment you sign your policy, your rate is locked in and
won’t change during the policy’s term.
Don't Wait Until You Have Kids
Birthrates have declined for women in their 20s and jumped for women in their late 30s and early 40s. Having life insurance in place before having children assures you lock in a considerably lower rate. A 30 year/500k policy for a 25 year old is roughly $27/month. The same policy for a 40 year old is roughly $47/month.
What Does Life Insurance Cover Anyway?
For instance, policy proceeds are often used for mortgage payments, debts, tuition, and everyday expenses. Ultimately, it's up to your beneficiaries to decide how to use the payout. Proceeds are paid in a lump sum and are generally tax-free.
