Life insurance is an uncomfortable topic for many families to discuss. However, the policy can help you protect your loved ones if something happens to you. You can help provide financial relief to your loved ones as they cope with your passing. Unfortunately, many people avoid talking about life insurance, which means they often find a policy as they approach middle age. That’s a big mistake. Here’s a look at why it’s important to acquire life insurance as soon as possible.
Potential Waiting Period
Life insurance policies generally have a waiting period before they go into effect. There are some policies where your death benefit immediately kicks in. However, for most policies, it could take four or five years before the waiting period ends. Insurance companies often wait at least three years because they want to reduce the potential of insurance fraud occurring. This is viewed throughout the industry as a wise financial decision. Consider the unfortunate circumstance that you may pass away soon after you obtain the policy. Because you haven’t paid any premiums, the insurance company may believe that it is not in their best interests financially to cover your benefits. These guidelines encourage people to purchase life insurance as soon as possible for better coverage.
Benefits of Purchasing Life Insurance Early
If you wait until you’re older to purchase life insurance, you’ll be looking for a policy that becomes effective as soon as possible. However, there are multiple benefits to purchasing life insurance while you’re young. Life is unpredictable. You could suffer a fatal accident when you least expect it. This could leave a heavy financial burden on your family. Having a life insurance policy in place ensures that your loved ones won’t have to cover all of your burial expenses during a difficult time. As a young person, you may not have a lot of money saved up as you deal with your monthly expenses and potential debt. If you were to pass away suddenly, your loved ones would be on the hook for some of your expenses. Life insurance can help alleviate some of that stress.
Finding a Life Insurance Policy Without a Waiting Period
Some insurance companies offer life insurance policies without a waiting period. However, you will be subject to paying higher monthly premiums. If you’re purchasing a policy as an older person, you’ll only be paying higher premiums for a relatively short amount of time compared to if you were paying these premiums as a young person. It’s recommended that you speak with an insurance agent, as they could help you find the policy that you’re looking for.
A guaranteed issue policy may be your best option. These policies do not require you to fill out a questionnaire or take a health exam in order to qualify for coverage. You are covered as long as you meet the monthly premiums. However, it’s important to note that your death benefit will be smaller compared to other life insurance policies. You can also inquire about a fully underwritten policy. You’ll be required to undergo a physical exam, but the coverage starts as soon as you’re approved.
Consult with Leland Smith Insurance
It’s never too early to start preparing for the future. It’s recommended that you purchase life insurance as soon as you’re able to. Our agents here at Leland Smith Insurance will assist you. Contact us today to learn more.