Get Life Insurance as early as possible

It's recommended that you buy life insurance at a young age. This means in your 20s and 30s. Most insurance companies will set the premiums based on age because your age can play a large factor when accounting for potential risks. A 20-year-old might have a lower risk for heart problems while it higher in a 60-year-old.

If you get a life insurance policy when you're in your 20s you can select a 30- or 40-year term, so you still have it when you're in your 50s and 60s; even if your health changes.

Additionally, some life insurance policies have a rider where you can select another 10- or 20-year term, but you pay a slightly higher premium. This is great because now you're 60 and on your own, you may not qualify because of your health issue.

Types of Life Insurance

• Term Life Insurance: This type of life insurance last for a predetermined time such as 10, 20, 30, or 40 years. This is great if you want to have coverage for a certain time, like the length of your mortgage, how long you have kids before they can work and fend for themselves, to cover a car loan etc.
• Whole Life Insurance: This last for your entire life. However, you should know that because it does not expire, the premiums are usually significantly higher than term life insurance.

Insurance companies usually have an age limit of 70 or 75 for people who can get a term policy and it's usually limited to a 10-year policy. There's too much risk of the policyholder dying during the latter.

Age limits are more flexible with whole life insurance. There are some insurers who will offer a life insurance policy to at 80, 85, or even 90. Some insurers may only offer final expense insurance, which is a type of policy that only covers funeral expenses.

While not absolutely everyone can qualify for life insurance, it's available until late in life. Keep in mind that it gets much more expensive.

How long do you need life insurance?

Since it costs more to buy life insurance as you get older, retirees should carefully consider if they need it. Adults normally get life insurance for one or more of the following reasons:

• To support loved ones who depend on your income
• To pay for end-of-life expenses, such as funeral and burial costs
• To pay off any debt they have if you were to pass away

Life insurance is important when you have loved ones who rely on you. If you have a spouse and children, then a life insurance policy could replace your income if you were to pass away.

But for older adults, there often comes a point when life insurance isn't necessary anymore. If you're 65 and your kids are now adults who don't rely on your income, then you don't need life insurance for that. If you're also debt free and have enough money in your savings account to cover end-of-life expenses, then you're likely fine without a life insurance policy.