Most people know that life insurance is an important part of financial planning, but far fewer know exactly when to buy it. Should you wait until you have kids? Until you buy a home? Or is it something to take care of early, even if you’re young and healthy?
The truth is, the best time to buy life insurance can vary on a case-by-case basis. But there are clear advantages to purchasing life insurance at certain stages of life. Whether you’re single, newly married, starting a family, or nearing retirement, understanding the best time to buy life insurance can help you lock in affordable rates and ensure your loved ones are protected.
Here’s what you need to know about the right timing—and why waiting could cost you more in the long run.
Why Timing Matters with Life Insurance
Unlike most types of insurance, life insurance is highly personal. It’s based largely on your age, health, lifestyle, and financial situation. As a general rule, the younger and healthier you are, the lower your premiums will be. That’s why buying early often leads to better rates—even if you don’t think you “need” coverage yet.
In other words, life insurance isn’t just about protecting others—it’s also about protecting your future insurability and your wallet.
Here’s a look at common life stages and why each might be a smart time to buy.
In Your 20s or Early 30s: Lock in the Lowest Rates
It may seem premature to think about life insurance when you’re just starting your career, but this is often the best time to buy life insurance. Premiums are at their lowest when you’re young and healthy, and you can lock in those rates for decades with a term policy.
Even if you don’t have dependents or a mortgage yet, having life insurance can cover student loan or credit card debt co-signed by parents, funeral expenses, and future family planning. Plus, purchasing a policy now ensures you won’t be caught off guard if your health changes later. Once you develop certain medical conditions, rates can increase, or you may not qualify at all.
When You Get Married or Start a Family
Marriage and children are two of the biggest reasons people start seriously looking into life insurance. If your spouse or children rely on your income, having a policy is essential. Life insurance helps ensure your family can maintain their standard of living, your partner isn’t left with mortgage or childcare expenses alone, and your children’s future—education, housing, or daily needs—is financially secure.
This stage of life is often associated with term life insurance, which provides coverage for a set number of years (like 20 or 30) at a lower cost than whole life insurance.
When You Buy a Home or Take on Major Debt
Taking on long-term financial responsibilities is another sign that it’s time to consider coverage. A mortgage is typically the largest debt most people have. If something happened to you, would your family be able to stay in the home?
Life insurance can be used to pay off the remainder of your mortgage, cover property taxes and utility bills, and provide a financial cushion while your family adjusts. For this reason, many homeowners choose a policy with a death benefit equal to or slightly higher than their mortgage balance.
When You Own a Business or Co-Sign a Loan
Entrepreneurs and business owners should also think seriously about life insurance. If you own a company or have business partners, your passing could create complications or financial gaps.
A life insurance policy can fund a buy-sell agreement, help your partners or heirs continue operations, and repay business loans or obligations.
Similarly, if you’ve co-signed any loans (like a car or private student loan), your passing could shift that debt burden onto someone else. A policy helps ensure they’re not left with those payments.
If You’re in Good Health
One of the most important life insurance cost factors is your health. That’s why buying when you’re in good physical condition—before any serious diagnoses or chronic conditions arise—makes a huge difference.
Even if you’re planning to start a family “someday,” it’s smart to buy life insurance when you’re insurable and can qualify for preferred rates. Waiting until you’re already dealing with medical conditions, medications, or family history issues might lead to higher premiums or even denial of coverage.
Before Retirement, If You Need Additional Protection
Even if your children are grown and your mortgage is paid off, there are still reasons to buy or keep life insurance in your 50s or 60s. These include providing for a spouse with limited retirement income, covering estate taxes, leaving a legacy or charitable gift, and covering final expenses like burial and medical bills.
In this stage, permanent life insurance options such as whole life or guaranteed universal life may be more appropriate depending on your financial goals.
What Happens If You Wait
Waiting to buy life insurance might save you a few dollars now, but it almost always costs you more later. As you age, premiums increase, health risks rise, and you might develop conditions that limit your options.
Plus, life has a way of moving quickly—once kids, a mortgage, or a spouse are in the picture, it’s one more thing you’ll need to check off your list.
The Bottom Line
The best time to buy life insurance is before you think you need it. And not being prepared can leave you and your loved ones in a difficult position. Notably, data from the Life Insurance Marketing and Research Association has shown that 38 percent of Americans would struggle financially in the first six months should their main household’s main wage earn pass away. Starting early gives you more affordable options, stronger coverage, and peace of mind. But no matter where you are in life, it’s never too late to find a policy that fits your situation.
Whether you’re newly married, starting a family, or protecting your legacy, we can help you compare policies that meet your needs and budget. Start exploring your life insurance options and get a personalized quote today by visiting our life insurance page.