For those sitting on the fence about buying life insurance, the waiting is likely costing you real money. It is also a risky proposition.
Risks in waiting include premature death, decline in health, insurability issues, and the fact that premiums increase with age.
A typical Universal Life insurance policy will cost a healthy 45-year-old male around $2500 a year for a quarter-million in coverage. Waiting until age 55 (healthy) will cost around $4000 a year and waiting until age 65 (healthy) will cost $7000 annually.
The smart play in this humble insurance agent’s opinion is to purchase a term life insurance policy as early in life as possible, say age 25-30. Instead of spending a couple thousand dollars a year on a Universal Life policy, spend a couple hundred dollars a year on a term life insurance policy, investing the difference.
Whether purchasing term life or some type of Universal Life with an investment option, both policies are much less expensive the younger and healthier you are.