Bosworth & Associates 1818 W SW Loop 323 Tyler, TX 75701

When is the Right Time to Buy Life Insurance?

November 5, 2021

When is the Right Time to Buy Life Insurance

More than ever in recent months and years, we’re facing how truly unpredictable life can be.

Many of us have lost friends and loved ones, making us think deeper about such things as life insurance.

What happens to your family when the unexpected happens?

Are they financially protected?

Bosworth Insurance in beautiful Tyler, Texas, is a local community insurance agency with an A+ rating from the Better Business Bureau. We’re also family-owned and local to the community since 1939. We’ve helped protect and ensure the people of Tyler for generations, and we’re invested in this area. We provide a range of insurance and services to ensure our clients’ needs are all accounted for.

One of the advantages to working with an insurance company and local insurance representative you can trust is that when you’re discussing something as personal as life insurance, you know they won’t try to sell you something you don’t need. When you call our agency, our experienced representatives will carefully explain coverage, rates, insurance policy options, insurance premiums, what low-cost options might be available for you, and provide you with life insurance options.

Communities and families help take care of each other, and that’s just what life insurance helps do: take care of your loved ones.

While we believe life insurance is a good idea for most adults, here are some indicators that you might want to start thinking about it sooner:

  • Do you have a lot of financial debt? Especially student loan and/or credit card debt? Most people graduating from college these days have one or both of these debts, many worth tens of thousands of dollars. What many don’t understand is that their families will be expected to take on those financial burdens if they pass away before they’re able to settle those debts. It’s a terrible thought that our families might suddenly be faced with not only mourning our loss and loss of potential income. In addition, they might be faced with enormous financial weight. If you have outstanding loans, it might be a good idea to look into life insurance to make sure your family is covered.
  • It just gets more expensive! Putting off life insurance is not something that saves you money. In fact, the older you are (with potentially more pre-existing health conditions that might impact your policy), the more expensive your policy is going to be. Getting your life insurance policy early is a win/win: it saves you money and protects your family.
  • According to an article by CNBC, when picking out your policy, you should try to have a death benefit amount that’s 5 to 10 times your income. This will hopefully give your family a financial cushion when it comes to settling debts and having enough to live on for a period of time.

a woman looks at an insurance company website

Types of Life Insurance:

There are three main types of Life Insurance: Term, Universal, and Whole.

Term insurance is especially suitable for healthy younger people who want affordable insurance for a specified coverage time. Keep in mind that buying more insurance at a later time could put you at a disadvantage as you’ll be older and with possible health complications. So, the insurance premiums might be higher. Talk with your insurance representative and see what plan might be best for you.

Whole life insurance is a permanent life insurance package. It’s also beneficial to purchase while you’re still young and healthy, as this plan is tax-deferred and grows in cash value over time.

Universal life insurance is similar to whole life insurance but also includes a death benefit and tax-deferred cash value component. This policy allows you to choose what finances go to the death benefit vs. cash value. You also have access to your cash value, which can be beneficial also.

In addition to life insurance, are you financially protected in other ways?

In uncertain times, life insurance is one way to help protect your family.  But are they protected in other ways? Depending on the unique needs of you and your family, Bosworth Insurance and other local insurance agencies like it offer different types of insurance for complete protection. Some examples: Renter’s Insurance, Homeowner’s Policy, Rental Insurance, Medical Insurance, Health Insurance, Car and Truck Insurance, and more.

While some people might be sure what insurance is best for them, it’s always good to speak to an insurance representative who can help you assess what’s best for your needs and those of your family. So, call your local insurance agency today, and ask about what insurance policies are right for you and your family.

Bosworth & Associates has been selected for the 19th year as a Best Practices agency.