It is impossible to predict when we will die. While it is important to have life insurance, there is no requirement to have it for a certain length of time before you die.
By obtaining life insurance early, you ensure that your loved ones will be protected in the event of a sudden death. Life insurance rates are based on age, and premiums tend to increase as you grow older. Therefore, obtaining coverage at a younger age often results in you paying more affordable premiums.
When determining how long you need life insurance before you die, it is helpful to assess your beneficiaries’ financial needs and obligations. Consider the following:
If you have dependents who rely on your income, you may want to ensure coverage until they can sustain their financial needs independently.
If you have outstanding debts, you may want coverage until those debts are fully paid off.
Future Financial Goals
You may wish to consider your long-term financial goals such as funding your children’s education, leaving an inheritance, or supporting a charitable cause. Life insurance can help to ensure they are achieved.