The decision to purchase a life insurance policy is important and there are many factors to take into consideration. The most significant of these is when is the best time to get life insurance. The answer is simple – the earlier, the better.

Life insurance rates are age-based which means that higher rates apply to older people. The later in life a life insurance policy is purchased, the more it is going to cost. This is the main reason why earlier is better.

Illness and disease is another reason why purchasing life insurance earlier on is recommended. Most insurance carriers consider people who have a chronic or life limiting disease as high risk for insurance and will in most cases not provide them with a life insurance policy or charge higher rates for cover.

However, there are certain milestones in life when the decision may become more urgent and require additional consideration.

The first of these is after graduation. Graduates are often first introduced to the world of credit when they first enter the workforce. Because credit arrangements often come with the condition that any outstanding balance needs to be settled upon death, life insurance becomes an important consideration to cover this debt.

The next major milestone occurs after marriage. Life insurance can provide for a spouse who is financially dependent on their marital partner in the event of death. This milestone often accompanies the purchase of a house and life insurance will ensure the repayment of a mortgage or home loan should the mortgage holder pass away. Although dual income households have increased significantly in the past decade, the combined incomes are often a case of necessity. Life insurance should be a priority for both spouses in dual income families.

The birth of a first child is another major milestone when life insurance becomes of greater importance. A policy can ensure that children are financially cared for after the death of a parent or both parents. Life insurance can go towards paying for the care of the children, their education and any future needs.

Retirement is the last of the major milestones when life insurance becomes a more urgent consideration. Leaving behind a financial legacy to loved ones is often the driving force behind the decision to take out life insurance later in life. Retirees are also faced with the fact that they are ageing and that they aren’t going to live forever. Once again, life insurance is a means to ensuring that they do not leave loved ones saddled with debt when they are gone.

Although taking out life insurance as early as possible is recommended, in general, making the decision before the age of 35 years is considered acceptable. Unfortunately, most people cannot afford life insurance at a younger age and will more often rather use their income to purchase a car or house and accumulate debt.

Considering that paying off debt is the major concern for those considering life insurance at each of the major milestones, it does make more sense to take out life insurance before accumulating debt.