Why should you get life insurance when you’re young?
If you’re young, healthy with no dependents, you may be wondering, ‘why do I need life insurance?’
Lower cost
The cost of your life insurance is based on your age, gender at birth, lifestyle, occupation, medical history and current health. If you’re young and healthy, the cost of your life insurance will likely be lower than if you wait until you’re older. I. Depending on your circumstances, Canada Life offers $100,000 in coverage over a 25-year term for $13.78 a month.
Financial protection
If the unexpected happened, having even a small amount of life insurance could help relieve those you leave behind from having to pay for your funeral expenses. It could also help cover any debt you may already have including student and other loans.
Securing your ability to get insurance
The time to get life insurance is when you’re young and healthy, before you develop any pre-existing health conditions that could make it more difficult to get coverage when you’re older.
What life event or milestones might motivate people to consider life insurance?
Marriage
You’re now making financial decisions as a couple. Life insurance can help keep 1 spouse’s death from financially devastating the other.
Becoming a parent
Life insurance can help provide for your child and your family if something happens to you.
Buying a home
With life insurance coverage you can help make sure your family can pay off the mortgage and other expenses if the unexpected happens.
Starting a business
When 2 or more partners start a business, having life insurance can provide funds to allow surviving partners to run the company.
If you need more coverage at one of life’s milestones, our guaranteed insurability rider may let you increase your coverage without new medical evidence.
What types of life insurance are there?
There are 2 basic types of life insurance coverage: term and permanent. Each has unique features designed to meet different needs.
Term insurance
- Temporary coverage
- Lower cost
- Fixed payments
- Option to convert to permanent
Permanent insurance
- Lifetime coverage
- Higher cost
- Flexible payments
- Opportunity to build cash value
What is Canada Life My Simple Term?
- Simple and affordable protection
- You choose the term length of 10, 15, 20 or 25 years
- No medical exam
- Premiums don’t change for the entire length of the term
What is Canada Life My Term?
- Customizable option that provides lower cost insurance protection
- You can choose monthly or yearly payments
- 5-50 years of term length
- Insurance payout goes to beneficiary tax-free
What term is best for your situation?
If you have smaller debts like a car or student loans, a shorter term may work best.
When it comes to mortgages or if you have any dependents, you may want to look into a longer term.
What is cash value?
With permanent life insurance, as you pay for your coverage, a percentage is kept in the policy (within limits) and accumulates interest. You can access this cash value later to pay for a wedding, home purchases, children's schooling, and even vacations. This money usually grows and is usually withdrawn without having to pay tax on it.
Can you get life insurance through your workplace benefits?
You may have some life insurance through your workplace benefits. However, the trend today is to switch employers every few years. This means you’ll likely lose your employer-provided life insurance provided every time you change jobs, and a new employer may not offer the coverage you need.
How much life insurance do you need?
The amount of insurance you need will depend on what you’re using it for. For sure, you’ll want to make sure your insurance covers any debts you may have.
The best strategy is to meet with an advisor who can look at your financial situation and help decide which type of insurance and amount of insurance best meets your needs.
How much does life insurance cost?
It depends on the type of coverage you choose. Generally, term insurance is more affordable than permanent insurance. But there are a lot of factors that determine the cost of your policy.
Things like your mortgage, kid’s education, debt and potential taxes from your estate should be considerations when looking at how much coverage you need.
Frequently asked questions
Do I need life insurance if I'm young and single with no dependents?
Yes. It is typically easier to get insured if you’re young and healthy.
Why are the benefits of buying life insurance when you're young?
Getting life insurance when you’re young can help lower your costs before you potentially develop any pre-existing conditions.
What happens to my coverage if I get married, have kids, or buy a home?
Our guaranteed insurability rider may let you increase your coverage without new medical evidence at one of life’s milestones.
What happens to workplace life insurance if I change jobs?
You’ll likely lose your coverage when you change jobs and coverage from your new employer may not be enough. Individual insurance can provide you the coverage you need.
What's the difference between term and permanent life insurance?
Permanent life insurance is lifetime coverage, while term covers you for a set period of time with an option to renew.