October 6, 2020

When Should You Get Life Insurance?

So you’ve probably been wondering, when is the right time to invest in life insurance?

Like most things, it depends. On a variety of factors.

Whether you’re just starting to work in your 20s or making inheritance decisions in your 50s, life insurance companies can provide you and your loved ones with peace of mind. Knowing that your financial obligations are covered and the ones closest to you aren’t on the hook for debts is a priceless feeling.

Often, when tragedy strikes, things come at you in ways you didn’t think were possible. Like this Calgary woman whose husband died suddenly despite being healthy, leaving her and their daughter without mortgage insurance, any income, and sadly, without any life insurance benefit.

“We always said next week, next month we will get it done,” the woman said.

Her advice to others?

“Don’t wait. You just never know. We were so focused on me because I had the health issues but we never would have thought in a million years that [he] could be gone because he is the healthy one. But he is gone now.”

Insurance Quotes Online for Young Families

You’re recently married, and living in Vancouver or Toronto with your partner. Maybe you want to start having kids in a year? Or buy a home instead of renting? Life insurance in Canada functions almost exactly the same as other countries. Certain factors, like age, health, and occupation are reflected in the insurance quotes. Generally, the younger and healthier you are, the more affordable the rate. However, there are caveats. Certain health conditions associated with pregnancy, like higher cholesterol, impact your rate significantly even if they go away shortly after you’ve given birth. That’s why it makes sense to take a look at life insurance quotes online before starting a family.

Life Insurance Quotes for Mid-Career Professionals in their 30s and 40s

So you’ve gotten this far and it’s worked out, right? You may have just upgraded to a single family home, taking on bigger mortgage obligations, and your spouse could be out of work caring for school-aged children. Being on a single income means that in the event of your passing, the remaining spouse will have no income, and still have to manage mortgage payments, cost of schooling, and day-to-day expenses while organizing your funerary process. That’s a lot to take on. Luckily, insurance companies allow more than one beneficiary on plans, meaning you can make sure your spouse isn’t left high and dry, and also secure a portion of the payout going to your children for their school fees later on.

Estate Planning and Life Insurance Quotes

Later on in life, you may have paid off your home and sent the kids out into the world to build lives of their own. Perhaps you’ve worked all your life for an employer who matches pension contributions, and so has your spouse. You’re comfortable, and ready to enjoy life. However, with significant assets like real estate, it might make sense to make an inheritance plan. While most life insurance quotes have age restrictions somewhere between 60 and 85, if you are in good health, you should be able to find a plan that works for you. Some benefits of estate planning with life insurance include a tax-free payout to beneficiaries, and the ability to generate dividends with permanent insurance plans.

Curious about which life insurance plan is right for you? Read about the differences between term and whole life insurance.