Did you know that there was a 14% increase in life insurance policies for those under 44? People are purchasing life insurance more than ever due to the recent COVID-19 pandemic. Life insurance and disability are critical benefits that employees look for from their employers.
You might be wondering, ‘when to get life insurance?’ It is never too late for life insurance with the different types of options out there. If you are wondering if life insurance is the right option for your business and employees, keep reading on for more information!
When To Get Life Insurance
When most people think about life insurance, the question comes up, ‘when is it too late to get life insurance?’ Arguably, the younger you opt for life insurance, the better. Most people don’t think about it until they are older, and while you can still purchase life insurance at an older age, you should really look into it in your 20s or 30s.
When getting life insurance, one thing to consider is aiming for death benefits that are 5 to 10 times your yearly income.
Term Life vs. Whole Life
At its core, term life insurance covers a set period. If you google, ‘when to get term life insurance,’ you will likely find advice that you purchase this while you’re younger. Most people use this when they have young children and want them to be financially secure if something happens to them.
Whole life insurance is what people typically think of with life insurance. It is usually more costly but will cover you for an extended period.
Another benefit of whole life insurance is that it can pay out after you die, and premiums usually remain fixed. It is a longer-term investment and has a better-guaranteed rate than term life insurance.Keep in mind that there are other life insurance policies, such as universal life insurance and permanent life insurance. A financial advisor can help you pick the best one.
How To Get Life Insurance
There are typically two avenues of getting life insurance. You can purchase it from your company or through a private insurance group.
Your company can benefit from offering small business life insurance for its employees. The more benefits your company has, the more likely you will help retain your employees and build a reputable company.
Why do your employees like employer-sponsored life insurance plans? Often, employers will cover part of the cost of premiums.
It often lowers employees’ overall expenses and works well with the benefits package. In some instances, employees may still be able to opt for other life insurance policies outside of work.
Is It Too Late?
It is not too late to ask the question, ‘when to get life insurance?’ However, if you are middle to older age, you might want to consider different options outside of term life insurance. If you have beneficiaries or businesses that you want to be covered after you die, life insurance is worth it.
For that reason, most people like the option of having life insurance policies through their employer. If you have a small to medium-sized business and want to purchase different disability and insurance policy plans for your employees, contact us today for a consultation!