FRIDAY, FEBRUARY 8, 2013
When should you buy life insurance? The obvious answer to this questions is before you die. The less obvious, but more important answer may be when you are young and healthy.
Most people don't think about life insurance until they have someone or something that depends on them for support. Common triggers to start the life insurance conversation include marriage, birth of a child, purchase of a home, etc. Events like these either force the life insurance purchase or bring the discussion to the forefront. However, after a recent personal experience, I'm here to offer a different thought.
Approximately one year ago, I was hospitalized with a rapid heartbeat. I was playing in my standard Tuesday morning basketball game when my heart started to race. It turned out to be nothing serious, but I was placed in intensive care for observation. Tests revealed a perfectly healthy heart and arteries. WooHoo! I was released with no restrictions on activity, food, drink, etc.
That morning at 5:30AM, I was a perfectly healthy guy with no health worries or concerns whatsoever. A few hours (and several thousand $$$) later, I had a heart related issue in my medical records. Why do I tell you this? Simple. The events of that morning, resulting hospital stay, and sudden change to my medical history had a drastic impact on the cost of life insurance.
Prior to the medical issue, I would have been able to purchase a $500,000 20-year term life insurance policy for around $400 a year. After my rapid heartbeat, the same policy jumps to approximately $700 a year. That is a 75% increase because of a sudden, unexpected event that could happen to anyone.
If you don't currently have life insurance because the need isn't there, you may want to reconsider. As I learned, your health factors can change when you least expect it.
- Andy Dillow