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What’s the best time of year to buy life insurance?

When's the best time to buy life insurance? While there's never a bad time, certain parts of the year may be ideal.
Jan 22nd 2020
3 min read
When is the best time to buy life insurance?

Some people try to buy a life insurance policy so that coverage starts at the same time as certain milestones  — or even certain points during the year.

Life insurance is designed to match your unique needs. So if your life needs change throughout the year, maybe it’s time to look at life insurance. Here are a few cases of when that might be useful:

 

New year, new insurance

Plenty of people make New Year's resolutions. Some promise to go to the gym more often, while others might aim for a better work-life balance.

Another big resolution is smarter budgeting.

Part of making a budget is planning for current and future spending. Will life insurance fit your budget in the new year?

January 1 is a clean slate. You could look at your money-in and money-out from the year before. Did you meet your financial goals? Did you take on new debts? Did you experience a life change like a new home or new baby?

Then you might look at your plan for the next 12 months. Would your family be financially stable if something were to happen to you? That’s where life insurance comes in.

 

Tax season

Taxes - they’re one of the few constants in life. But there might be a payoff for many: a potential refund. Some people may be tempted to use their refund to buy a new TV, or finally take that vacation. More power to you. But that spare money could also go toward a life insurance policy.

You don't have to spend your refund all in one place, or choose one thing over the other. You can potentially get a new TV and get life insurance coverage.

If you receive a refund, consider using it to pay off high-interest debts first. Then, you can set aside whatever is left for savings. Alternatively, if you don't have life insurance, you could use those funds to get a policy. Life insurance can be an inexpensive way to give your family some protection against funeral costs or mortgage payments when you pass.

 

Summer vacation

Summer is for enjoying warm weather and family cookouts. And it’s a great time to consider your life insurance needs.

Here are two reasons why:

 

  1. Consider if you have children:

    You might have a new freshman starting school in the fall. But paying for trade school or a four-year college often means taking on some debt. Should you pass away, your family might have to pay those debts without the benefit of your income.

     
  2. Think about travel: 

    Vacation is about getting away from worries, but summer can be a dangerous time to be on the road. If you're traveling to a grandparent's house or local camping ground, it might make sense to double-check your life insurance. Also, accidental death and dismemberment insurance may provide extended protection in the event of an accident.

     

Winter holidays

Think about giving your family the gift of stability during the winter holidays. Icy roads and snowy weather make staying warm inside a good idea. And using that time to hash out financial plans for the year ahead is valuable. You should look at your family budget, as well as your insurance coverage. Should anything happen to you, you'll want to make sure your family is looked after. In general, the end of the year is a great time to reassess your insurance needs no matter what.

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