When to buy life insurance - Part 7
By admin on February 25th, 2010Life insurance if is possible best is to start when a baby is 1 month old (most life insurance company’s requirement) as it’ll be the lowest premium you can ever get.
This is provided if the parents can afford the premium and has adequate life insurance coverage on themselves. A rule of thumb is the parents must have 10 times of their annual pay.
I would recommend a whole life insurance with disability and critical illness rider or a 20 to 25 years convertible term. This will give the child a head-start in life and by the time when they are adult the child can convert the term to a permanent plan without the need of health declaration.
Though life insurance is important, do not forget health insurance is far critical in this high medical cost society. All sound financial plan builds on the foundation of proper risk management which is life insurance.
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