Austin, TX, is a fun town. It’s exciting, growing, and quickly becoming one of the cultural centers of America. While living in the area is full of pros, it isn’t quite magical enough for you to escape some of the mundanities of adult life. That includes contemplating insurance. Before you contact your rep at Rate Genius Insurance, you might be wondering if you really need life insurance. Let’s take a look at that question and help you build a better idea.
Understanding when to get life insurance begins with understanding why you should get it. It’s pretty basic. You want life insurance to offset the costs of death. It’s an unfortunate topic, but funeral costs and other issues can be expensive. Life insurance prevents that from being a burden on those you leave behind. The other primary reason to get life insurance is to provide financial assistance to anyone who depends on you. Most of the time this would be a spouse or children, but it can include a lot more. So, with those concepts in mind, let’s discuss when you should start.
The general rule of thumb (and there are exceptions) is that life insurance is cheaper the younger you are when you initiate the policy. That said, young children don’t really need a policy. After all, who are they supporting financially? Besides that, we’re ok with being optimistic about their futures.
Thinking along those lines, you might consider waiting until you are married or have kids to get started, but for many people, this might not happen until your 30s or later. It turns out that there is a mathematical sweet spot. If you start in your 20s, even though you’ll pay for a longer time, you’ll ultimately save money on your policy. If you happen to have missed the golden opportunity, it’s not too late to still save. Every year past your 20s is likely to add a little more to the premiums, and the rate accelerates with age.
Let’s simplify. If you have a steady income, you should probably have a life insurance policy. If you want to review options and make sure your policy is matched to your goals, speak with your Rate Genius Insurance representative in Austin, TX.