Here's What Happens When You Put Off Buying Life Insurance

When I was in my 20s, I'll admit that life insurance wasn't an expense on my radar. At the time, I was busy getting used to my new mortgage payments and trying to further my career. And since I didn't have kids, I assumed I didn't need a policy just yet.

But once my husband and I had our son, we started getting some quotes from life insurance companies and eventually landed on a policy to put in place. By then, we were in our 30s, which meant that we were still able to snag a relatively competitive rate on our coverage. But had we applied in our 20s, our rates would've been even lower.

If you're in a position where you need life insurance, you should know that putting it off could increase your risk of leaving your loved ones in the lurch in the event of your untimely passing. But it could also mean paying more for a policy than you want to.

Don't let cost be an immediate deterrent

Some people delay a life insurance purchase because they're convinced it will cost them a small fortune and they feel they can't afford it. Before you subscribe to that line of thinking, shop around and see what costs you're actually dealing with.

I, too, assumed that life insurance would cost a small fortune. And while it costs some money, it's a more reasonable amount than I had expected.

Realize, too, that the cost of your life insurance policy will depend on the amount of coverage you're buying. If you feel you only need a $250,000 policy, you're not going to be looking at the same premium rates as someone in a comparable boat to you wanting $1 million of coverage. So it's definitely worth getting quotes before deciding you can't afford life insurance.

Delaying life insurance could cost you

The younger you are when you apply for life insurance, the less your coverage is likely to cost. It's that simple. Ramsey Solutions says that the average cost of a $1 million term life insurance policy for a non-smoking male is $52 a month for a 20-year term at age 28. At age 36, the cost climbs to $64. At 40, it climbs to $84.

Of course, your circumstances may be such that you don't need to apply for life insurance in your 20s. If you don't get married until your 30s and aren't supporting anyone else financially until you tie the knot, then waiting makes sense.

The point, however, is that life insurance tends to get more costly with age. So if you have a need for life insurance, don't wait to address it.

Not only will delaying your application likely drive up your costs, but it might also lead to a situation where you pass away without having put that coverage in place. So if you're inclined to buy life insurance, just get it done with. Call different companies to compare rates or get a broker to do that legwork for you. Chances are, you'll feel a sense of relief after putting a policy in place, like I did.