Why you should buy life insurance in 2023

The beginning of a new calendar year marks a time of reflection for many. It can also provide an opportunity to make changes and repairs, particularly when it comes to personal finances. This can range from searching for new ways to save to cutting debt and more. January is also a good time to boost your financial protections.

If you don't have life insurance, for example, or are underinsured for your circumstances, now is a good time to act. The benefits of having a life insurance policy are varied and significant although it's generally advantageous to secure a policy sooner than later.

If you're in the market for life insurance then start by getting a free price quote so you know exactly what to expect.

Why you should buy life insurance in 2023

Like most financial products and services, the timing around a purchase is critical. Here are three reasons why you should buy life insurance in 2023.

Prices will rise

Life insurance - and insurance types in general - favor the young. As you age you'll become riskier to insure. The risk the life insurance company assumes, then, will be reflected in higher premiums that you'll have to pay. But if you act now, when you're as young as you ever will be, you'll improve your chances of securing a lower rate. 

Life insurance payout amounts range dramatically from tens of thousands of dollars to $1 million or more. While you'll typically pay more for higher amounts, the cost you'll incur will be negligible at a younger age. In fact, healthy young adults may be able to secure a term life insurance policy for less than $50 each month (maybe cheaper depending on a range of eligibility factors). Just make sure you're willing to take a medical exam to demonstrate your fitness and health.

Not sure what a policy would cost you? Get a free price estimate and find out!

Coverage won't be as limited

Another benefit to applying for a policy soon? Your coverage won't be as restricted. The younger you are when you apply the better your chances for more robust coverage. For example, younger applicants typically pay the same (or less) than an older applicant does for the same coverage.

While life insurance for seniors can be worth it in certain circumstances, the protections they can receive relative to the cost they have to pay may not always be valuable. A policy in the amount of $150,000 for a 64-year-old, for example, may cost around $100 per month. A younger person, meanwhile, can potentially secure a $1 million policy for less than $50.

So, if you want a great amount of coverage, apply now before providers start limiting what they will offer. 

You'll have more time to build up cash

Term life insurance policies are favored by many because of their low cost. Whole life insurance policies, meantime, tend to be more expensive. That's because whole life insurance policies come with a desirable cash reserve that policyholders can actually access while they're alive. This cash can be used to pay off debt or education expenses, make household repairs, or anything else the insured wants to use it for. The amount used will be deducted from the ultimate payout but that may be acceptable if the cash comes in handy sooner than later.

But, it takes time to build up the cash in a whole life insurance policy. And you won't be able to access it immediately (nor would you want to considering the relatively low amount stored in the early stages). 

If you purchase a whole life insurance policy now, however, you'll have more time to build up the cash reserves. This will provide a backup cash reserve that can be used when you're older - or it can be saved as you see fit. If you want to go this route and truly want to benefit from the advantages a whole life insurance policy offers, it pays to get started this year.

The bottom line

As mentioned, the timing around a financial product or service is key. Economic protections like life insurance are typically most valuable when you apply early. By applying for life insurance now you're more likely to secure a low rate and more robust coverage. You'll also give yourself a headstart on growing your cash reserves, should you want to pursue a whole life insurance policy.

Start by getting a free price quote or use the table below to review some top providers.