If you could do one thing with your money in 2024, do this:

The start of a new year is a popular time to do financial planning. And your investments may include opening a brokerage account to invest or putting cash into a CD to take advantage of today’s competitive interest rates.

Both are sound financial choices. However, if you don’t yet have life insurance and have family members who depend on you financially, getting a policy should absolutely be a priority.

Why you can’t afford to wait for life insurance

If you’re fairly young, you might be telling yourself that life insurance isn’t something you need right away. But this way of thinking is flawed for one big reason.

The whole purpose of life insurance is to protect your loved ones if something extreme happens and you die unexpectedly. Because you’re young, you may be less at risk for certain health conditions, but being in the wrong place at the wrong time doesn’t necessarily mean you won’t get hit by a bus or attacked by a criminal. .

That’s why life insurance is something you really shouldn’t put off. It’s not just your health that you need to worry about, it’s your situation.

To be clear, this doesn’t mean you should walk around in constant fear that something bad is going to happen. Quite the opposite. Buying life insurance gives you peace of mind that your loved ones will be financially protected no matter what happens.

Additionally, you should know that the younger you are when applying for life insurance, the cheaper your premiums may be. Dave Ramsey says the average cost for a 30-year-old non-smoker for $1 million in 25-year term life insurance is $63.50 per month. For a 36-year-old applicant, it is $81.50 per month. And for a 42-year-old applicant, the average monthly cost is $132.50. Term life insurance is generally the simplest and cheapest type of life insurance.

The life insurance rates you are offered can look very different, in both good and bad ways. But the important thing is that the younger you are when you apply, the cheaper life insurance is likely to be.

Shop for the best price

Ideally, at this point you will be convinced that it is a good idea to consider purchasing life insurance in 2024. But one thing you don’t want to do is rush the process and sign up for the first insurance that’s approved.

Rather, look for life insurance. That’s because you never know when one policy may be cheaper than another for the same amount of coverage. And if you’re not sure how much insurance coverage you need, the basic rule is to multiply your current salary by 10 and add any major debts you and your family members are jointly responsible for.

For example, let’s say you make $60,000 a year and you and your spouse have a $200,000 mortgage. In this case, you might want to aim for $800,000 in coverage, at least as a starting point.

Of course, if you can’t afford the amount of coverage you’d like, it may make sense to choose a smaller policy now and purchase more life insurance when your finances allow. But the point is part If you have people in your life who depend on you financially, you may want to get covered as soon as possible.

Our recommendations for the best life insurance companies

Life insurance is essential if you have people depending on you. We’ve carefully researched the options and developed a list of the best life insurance coverage. this guide We will help you find the best life insurance company and the right type of insurance to suit your needs. Read your free review today.