Is There a Right and Wrong Time to Buy Insurance?

Insurance is a funny thing. It's something you buy but hope you'll never have to use. It's often been said that insurance is better to have and not need than to need and not have, but if you wait to buy insurance until you absolutely need it, you've likely waited too long!

The Best Time to Buy Insurance

Depending on what type of insurance you're considering, there are different times that are optimal for buying it. Following pure logic, the best time to buy life insurance is immediately after birth since, as you age, life insurance premiums continue to increase in cost. The sooner a policy is bought, the lower the price. While many companies sell life insurance for children and some even specialize in it, like those you may have seen advertised on TV, child insurance isn't typically recommended by the experts.

The primary purpose of life insurance is financial protection for any dependents relying on your income for their current standard of living. Since kids generally don't earn an income, they have no dependents relying on them for their financial security.

The best time for buying life insurance is actually when you get married and start a family. The family becomes dependent upon your income and a life insurance policy protects them from losing their financial support should you suddenly die. Life insurance proceeds can also go toward paying off debts and taking care of burial expenses. Many experts recommend you carry life insurance coverage equal to 15 to 20 times your annual income while your family is still young. Later in life, as the kids leave the nest and the house gets paid off, you can drop this down to 10 to 15 times your annual income.

Car Insurance 

                                                 

Car insurance is one type of coverage that you're required by law to carry. That is, if you operate a motorized vehicle on public roads. You need to have your insurance in place before you take your vehicle out on the road and maintain coverage continuously as long as you're driving.

Car insurance policies typically come up for renewal every 6 or 12 months and it's a good idea to do some comparison shopping each time your renewal comes due. Auto insurance companies change their rates frequently and sometimes add additional discounts. Look at your coverage every year and compare competitive policies. Seek the best coverage and the best prices.